SFT Transaction or not.

Dear Sir, A person hasworking from 2006 His annual income is less then Basic limit so previous years he was not never filed itr but saving rs.100000/-each year. In 2018 he also got gratuity and epfo from his previous company. Same amount I have concert to FDR in 2 bank and some balance available in saving account. In FY year annual income increase due to fd interest and some rent income approximately Rs.4 lac 10 thousand. he had seen 26 As form where only shows fd interest no any other but AIS Shows high value transaction under SFT Code SFT-016TD interest of deposit Rs.33321/- and SFT-016SB Interest of saving 14521And 245/- past 10 years he neverr done any high value transaction so why it shown in ais under SFT. (2) FD value is less then 7 Lac bank will reporting if fd value exceeded Ra. 10L .Cash deposit in saving account from 1 st april 2020 to 31 March Rs.19000 in June 2020 Rs.32000 in November 2020 and 3500/- in March 2021 So why AiS Show high value transaction under SFT

Hi Naveen,

Here’s a breakdown to clarify your query about the SFT (Specified Financial Transactions) reported in AIS (Annual Information Statement) and why certain transactions show up:

1. Why are FD interest and savings interest showing under SFT?

SFT Codes Explained:
- SFT-016TD: Interest on Time Deposits (FD interest).
- SFT-016SB: Interest on Savings Bank Accounts.
Banks and financial institutions report interest income on deposits exceeding ₹10K in a financial year under SFT rules to the Income Tax Department.
Even if the principal FD amount is less than ₹10 lakh, interest earned exceeding ₹10K is reportable.
Hence, interest amounts like ₹33,321 on FD or ₹14,521 on savings account are reported as specified financial transactions.

2. About reporting threshold for FDs:

Deposit threshold for reporting the principal amount: ₹10 lakh or more.
Interest threshold for reporting: ₹10K or more.
So, even if the FD principal is less than ₹10 lakh, but interest exceeds ₹10K, the interest amount is reported under SFT.

3. Why are small cash deposits showing under SFT?

Cash deposits exceeding ₹10 lakh in aggregate during the financial year are reported.
Your individual cash deposits like ₹19K, ₹32K, and ₹3,500 are small, but if total cash deposits in that FY exceed ₹10 lakh, it will be reported.
From your amounts, total cash deposits don’t cross ₹10 lakh, so these small cash deposits should not be reported individually under SFT.
But sometimes AIS may show cumulative cash deposits, or it could be an error or mismatch.
It’s advisable to check with your bank for the exact reported transactions.