ATTENTION SFT filers! Income Tax department extends last day for submitting returns | New deadline, penalty, other details | Statement of Financial Transactions

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The income tax (I-T) department has told banks, foreign exchange dealers, and other reporting entities that they have a ‘couple of days more’ to file statements of financial transaction (SFT) returns to report high-value transactions made by their clients in 2022-23.

Read More: Income Tax department notifies scheme for online filing and processing of appeals

Deadline extended

This marks an extension of the earlier deadline of May 31 for SFT filers for the financial year 2022-23. The additional time has been provided in light of the heavy traffic on the reporting poral, which led to some challenges for SFT filers. Regarding the same, the department said, “due to heavy traffic on the reporting portal, some filers may have encountered difficulties in filing SFT returns. It is informed that the functionality for filing of SFT returns will remain open for a couple of days more to enable smooth filing of SFT returns.”

SFT filers may please note:
Due to heavy traffic on the reporting portal, some filers may have encountered difficulties in filing SFT returns. It is informed that the functionality for filing of SFT returns will remain open for a couple of days more to enable smooth filing of SFT…

— Income Tax India (@IncomeTaxIndia) May 31, 2023

Read More: e-Appeals Scheme 2023 of Income Tax: CBDT notifies scheme that will reduce pendency of appeals – Details

Previously, the department had taken to social media to inform that a delay in filing SFT may entail a penalty of up to Rs 1000 for each day of default. It had also said that non-filing of SFT, or filing statements with inaccurate details may also lead to the levy of penalty, PTI reported

What is SFT?

Under SFT, certain institutions must furnish the details of specific financial transactions or any reportable account registered, recorded or maintained by them during the year.

PTI said that through SFT, the I-T department keeps track of high-value transactions embarked on by a person.

Read More: Income Tax SFT Filing Last Date: Entities Must File Today To Avoid Penalty; Know Details

Entities such as banks, non-banking financial companies (NBFCs), post offices, foreign exchange dealers, sub-registrar, issuers of bonds/debentures, mutual fund trustees, as well as companies paying dividends or buying back shares, must file returns with tax authorities.

Process

For registration and submission of SFT returns, entities must visit the official website, https://report.insight.gov.in. Post offices and sub-registrars have the option of submitting the statements directly to TIN facilitation centres.