The Central Board of Direct Taxes (CBDT) has notified the amended procedure and guidelines for submission of Statement of Financial Transactions (SFT) for Interest income and abolished the limit of Rs 5,000/-.
Section 2856A of the Income Tax Act, 1961, and Rule 114E requires specified reporting persons to furnish statement of financial transaction (SFT). For the purposes of prefilling the return of income, CBDT has issued Notification No. 16/2021 dated 12.03.2021 to include reporting of information relating to interest income. The Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Interest income was notified via Notification 2 01 2021 dated 200 April 2021.
As per sub-rule (4)(b) of Rule 114E Director General of Income-tax (Systems) shall specify the procedures, data structures and standards for ensuring secure capture and transmission of data, evolving and implementing appropriate security, archival and retrieval cajoles.
The Remarks column point 1 at Annexure A prescribes the guidelines for Preparation of Statement of Financial Transactions (SFT) mentioned The information is to be repotted for all account/deposit holders where cumulative interest exceeds Rs 5,000/ per person in the financial year.
“The Remarks column at Annexure A is hereby being modified and may be read as ‘The information is to be reported for all account/deposit holders where any interest exceeds zero per account In the financial year excluding Jan Dhan Accounts,” CBDT said.
A notification issued by the CBDT stated that “In the view of the changes mentioned above, the limit prescribed in Notification 2 of 2021 dated 20`” April 2021 stands abolished and this addendum will come into effect from 05.01.2023.”
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