SFT for Mutual Fund Transactions: Format, Procedure & Guidelines for RTAs


Quick Summary
This notification from the Indian Ministry of Finance outlines the new format, procedure, and guidelines for Registrar and Share Transfer Agents (RTAs) submitting the Statement of Financial Transactions (SFT) for mutual fund transactions. These rules, issued under the Income-tax Act, are designed to facilitate pre-filling of income tax returns. RTAs must prepare data files in the specified format and submit them via the SFT portal.

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

Notification No. 2 of 2026

New Delhi,10th September, 2026

Format, Procedure and Guidelines for submission of Statement of Financial Transactions {SFT-2518) for Mutual Fund Transactions under section 508{1) of the Income-tax Act, 2025 read with sub-rnle 6 of rule 237 of the Income-tax Rules, 2026 by Registrar and Share Transfer Agent

Section 508 of the Income-tax Act, 2025 and rule 237 of IDcome-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 specifies that a statement of financial transaction under section 508( I) containing information relating to capital gains on transfer of units of Mutual Funds shall be fiirnished by the class of person (reporting person) mentioned in column 4 of sl. no. I of the Table under the 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 approval of the Board.

3. In exercise of the powers conferred under sub-rule 6 of rule 237, the DGIT(S) hereby specifies the guidelines for preparation and submission of statement of financial transaction (SFT), which are enclosed as. Annexure A and Annexure B respectively.The format of control statement to be submitted by the Designated Director is enclosed as Anuexure C. The data structure and validation rules are enclosed as Annexure D and Annexure E respectively.

4. All Registrar and Share Transfer Agents registered under section 12(1) of the Securities and Exchange Board oflndia Act, 1992 (15 of 1992) are required to prepare the data file in prescribed format from their internal system. Rep.orti.ng entities are required to submit the data files using SITP server using the login credentials(communicated separately).

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

6. The statement of financial transaction will be submitted on half yearly basis. The SFT relating to l st half of the FinanciaJ Year ending on 30th September and remaining half of the financial year ending on 31st March shall be furnished on or before 31st of October and 30th of April respectively

FAQ :

Registrar and Share Transfer Agents (RTAs) registered under the Securities and Exchange Board of India Act, 1992, are required to submit the SFT for mutual fund transactions.

The purpose is to specify the format, procedure, and guidelines for submitting the SFT for mutual fund transactions, which will help in pre-filling income tax returns.

The Statement of Financial Transaction (SFT) will be submitted on a half-yearly basis.

The SFT for the first half of the financial year (ending 30th September) must be furnished by 31st October, and the SFT for the second half (ending 31st March) must be furnished by 30th April.

The guidelines for preparation and submission of the SFT, along with the format of the control statement, data structure, and validation rules, are provided in Annexures A, B, C, D, and E respectively, which are enclosed with this notification.

 



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