SFT for Depository Transactions: Format, Procedure & Guidelines


Quick Summary
This notification outlines the format, procedure, and guidelines for submitting the Statement of Financial Transactions (SFT) for depository transactions. It specifies the requirements for reporting persons, including depositories, to furnish information related to capital gains on the transfer of listed securities or mutual fund units. The guidelines, formats, and validation rules are provided in the annexures.

Government of India
Ministry of Finance
Central Board of Direct Taxes
Directorate of Income Tax (Systems)

Notification No 1 of 2026

New Delhi, 10th September, 2026

Format, Procedure and Guidelines for submission of Statement of .Financial Transactions (SFT-2517) for Depository Transactions under section 508(1) of the Income-tax Act, 2025 read with sub-rule 6 of rule 237 of the Income-tax Rules.2026

Section 508 of the Income-tax Act, 2025 and rule 237 of Income-tax Rules, 2026 require specified reporting persons to furnish statement of financial transaction (SFT).

2. For the purposes of pre-filling the return of income, sub-rule 6 of rule 237 specifics that a statement of financial transaction under section 508(1) containing information relating to capital gains on transfer of listed securities or units of Mutual Funds shall be furnished by the class of person (reporting person) mentioned in column 4 of sl. no. I of the Table under t he said rule in such Form, at such frequency, and in such manner, as may be specified by the Principal Director General of Income Tax(Systems) or the Director General of Income Tax (Systems), as the case may be, with the approva l of the Board.

3. In exercise of the powers conferred under sub-rule 6 of rule 23 7. the DG IT(S) hereby specifies the guidelines for preparation and submission of statement of financial transaction (SF'I), which are enclosed as Anncxure A and Annexure B respectively.The format of control statement to be submitted by the Designated Director is enclosed as Annexurc C. The data structure and validation rules are enclosed as Annexure D and Annexure E respectively.

4. All Depositories as defined in section 2(1)(e) of the Depositories AcL 1996 (22 of 1996) are required to prepare the data file in prescribed format from their internal system. Reporting entities are required to submit the data files using SITP server using the login credential(communicated separately).

5. A separate control statement (refer annexure C) is required to be signed, verified and furnished by the Designated Director. 

FAQ :

This notification provides the format, procedure, and guidelines for submitting the Statement of Financial Transactions (SFT) for depository transactions under Section 508(1) of the Income-tax Act, 2025.

Specified reporting persons, including Depositories as defined in the Depositories Act, 1996, are required to furnish the statement of financial transaction.

The SFT needs to contain information relating to capital gains on the transfer of listed securities or units of Mutual Funds.

The guidelines for preparation and submission of the SFT are enclosed as Annexure A and Annexure B. The format of the control statement is in Annexure C, and data structure and validation rules are in Annexure D and Annexure E.

Depositories are required to prepare the data file in the prescribed format from their internal system and submit it using the SFTPS server with their login credentials.

A separate control statement, referred to in Annexure C, needs to be signed, verified, and furnished by the Designated Director.

 



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