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SIGNIFICANT FINANCIAL TRANSACTIONS

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DHRUV

student

109 Points Posted on 29 May 2023

AS PER THE SFT PROVISIONS PEOPLE COVERED UNDER TAX AUDIT U/S 44AB NEEDS TO REPORT IF “CASH RECEIPT FOR SALE, BY ANY PERSON, OF GOODS OR SERVICES OF ANY NATURE EXCEEDING RS 2 LAKH”

MY DOUBT IS REGARDING THE INTERPREATATION. 2 LACS LIMIT IS PER PARTY OR PER INVOICE.

FOR EXAMPLE, I HAVE ISSUED MULTIPLE SALES INVOICES TO MR X AMOUNTING TO TOTAL 10 LACS DURING THE YEAR. NOW HE HAS PAID, THROUGHT MULTIPLE PAYMENTS, 7 LACS VIA BANK AND 3 LACS IN CASH OVER THE YEAR IN PARTS.

WILL I HAVE TO REPORT THIS UNDER SFT?

Replies (2)

Quick Summary

This discussion clarifies the reporting requirements for Significant Financial Transactions (SFT) concerning cash receipts exceeding Rs 2 lakh. It addresses whether the threshold applies per party or per invoice. The consensus is that the Rs 2 lakh limit is assessed per invoice, per day, and per party. If individual invoices fall within this limit, reporting is not required, but if any single invoice exceeds it, SFT reporting becomes mandatory.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121546 Points Posted on 07 June 2023

The 2 lakhs limit is per invoice, per day, per party.

If any of the bills gets independently adjusted within the said limit on independent dates, you need not report, otherwise you will be required to report them.