SPECIFIED FINANCIAL TRANSACTIONS- SFT

Do you wonder why an assessee will receive a notice for non-filing of return/ non-inclusion of certain information?

Department can send a notice in case the information provided in SFT is not included in the income tax returns. Hence be careful while carryout the financial transactions and make sure the transactions are in harmony.

We are all aware that we are under the lens of income tax department with respect to most of the financial transactions.

Let me go through few of the transactions which are being reported by the financial intermediaries.

What is SFT?

SFT stands for Specified Financial Transactions OR Statement of Financial Transactions is a report filed by SPECIFIED PERSONS mentioned under the Act. The report is filed every year by the Specified Persons on or before 31st May.

Does bank/post office report all the transactions to the department?

NO. Only certain specified transactions within the specified limits will be reported by them.

Hence, make sure you file an income return even though if you do not have taxable income and if the above said transactions have been carried out during the year to avoid income tax notices.

Also, plan your transactions accordingly to avoid being in the lens of the department.

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