SFT is a report of specified financial transactions by specified persons including prescribed reporting financial institution. Such specified persons who register, maintain or record such specified financial transaction are under a mandate to submit SFT to the income tax authority or such other specified authority or agency.
Section 285BA authorizes Central Board of Direct Taxes (CBDT) to prescribe different values with respect to different specified financial transactions in respect of different specified persons having regard to the nature of such transactions
The scope of Statement of Financial Transactions (SFT) has been expanded to widen the tax base. Once the CBDT releases the notification in this regard, the notified persons should report the following transactions in their SFT:
1) Payment to hotels above Rs. 20,000
2) Payment of property tax above Rs.20,000
3) Payment of health insurance premium above Rs.20,000
4) Payment of rent above Rs.40,000
5) Payment of life insurance premium above Rs.50,000
6) Electricity consumption above Rs.1 lakh
7) Payment of educational fee/donations above Rs.1 lakh p.a
8) Purchase of jewellery, white goods, painting, marble etc. above Rs.1 lakh
9) Deposit/credits in the current account above Rs.50 lakh
10)Deposit/credits in the non-current account such as savings accounts above Rs.25 lakh
11)Domestic business class air travel or foreign travel
12)Share transactions/D-MAT accounts/Bank lockers
Also, it is to be noted that the following persons should file their SFT return mandatorily:
1) A person having bank transactions above Rs.30 lakhs
2) All professionals and business having turnover above Rs 50 lakhs
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