Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Interest income

Last updated: 23 April 2021

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This notification from the Central Board of Direct Taxes outlines the format, procedure, and guidelines for submitting the Statement of Financial Transactions (SFT) specifically for interest income. Reporting entities must furnish this information as per Section 285BA of the Income Tax Act, 1961. The guidelines cover data preparation, validation, submission methods including a reporting portal and SFTP, and the signing authority for the statement.

Government of India Ministry of Finance Central Board of Direct Taxes Directorate of Income Tax (Systems) Notification No.2 of 2021 New Delhi,20April,2021 Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Interest income Section 285BA of the Income Tax Act, 1961 and Rule 114E requiresspecified reporting persons to furnish statement of financial transaction (SFT). 2. For the purposes of prefilling the return of income, CBDT has issued N

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FAQ :

This notification provides the format, procedure, and guidelines for reporting entities to submit the Statement of Financial Transactions (SFT) related to interest income, as required by Section 285BA of the Income Tax Act, 1961.

Specified reporting persons are required to furnish the statement of financial transaction (SFT) as per Section 285BA of the Income Tax Act, 1961 and Rule 114E.

The notification includes Annexures for guidelines on preparation and submission, data structure, validation rules, and the procedure for registration. Reporting entities can use their internal systems or an Excel-based utility.

Data files must be validated, compressed, encrypted, and signed using the Text File Submission Utility before uploading to the reporting portal (https://report.insight.gov.in/). SFTP is also an option for entities with many data files.

The statement of financial transactions must be furnished on or before the 31st May, immediately following the financial year in which the transaction is registered or recorded.

The statement shall be signed, verified, and furnished by the specified Designated Director. For non-resident reporting persons, a person with a valid power of attorney from the Designated Director can do so.

Notification No : Notification No. 2 of 2021
Source : https://www.incometaxindia.gov.in/communications/notification/notification_2_2021_interest_income.pdf

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