SFT Filing for FY 2024-25: A Complete Guide for Taxpayers

Contents Covered

• Introduction
• What is SFT
• Who is required to File SFT
• Reportable Transactions in SFT
• Penalty for non filing
• Conclusion

Introduction

With the ever-increasing focus on financial transparency and data-driven compliance, the Statement of Financial Transactions (SFT) has become a cornerstone of the Income Tax Department’s information-gathering framework. As the FY 2024-25 has completed, it’s critical for businesses, professionals, and reporting entities to understand their obligations under SFT reporting to avoid scrutiny and penalties.

This article outlines the applicability, due dates, types of transactions, and penalties associated with SFT filing for the financial year 2024-25.

What is SFT?

SFT, or Statement of Financial Transactions, is a report that certain entities are required to file with the Income Tax Department under Section 285BA of the Income-tax Act, 1961. It includes high-value transactions undertaken by taxpayers during the financial year.

These filings allow the tax authorities to cross-verify income declarations, detect potential tax evasion, and expand the tax base.

Who is Required to File SFT?

The following categories of persons/entities are mandated to file SFT, subject to thresholds:

• Banks and Post Offices
• NBFCs and Financial Institutions
• Companies issuing shares, debentures,
  buybacks
• Mutual Fund Companies
• Registrar or Sub-registrar (property
  transactions)
• Stock Exchanges
• Credit Card Issuers
• Persons Covered under the Tax Audit

Key Transactions Reportable under SFT for FY 2024-25

Nature of Transaction	Reporting Entity	Threshold Limit
Cash deposit in savings account	Banks/Post Office	₹10 lakh or more
Cash deposit in current account	Banks/Post Office	₹50 lakh or more
Credit card bill payments (cash)	Banks/Credit Card Issuers	₹1 lakh or more
Credit card bill payments (any mode)	Banks/Credit Card Issuers	₹10 lakh or more
Purchase of shares, debentures, mutual funds	Companies/AMCs	₹10 lakh or more
Purchase/sale of immovable property	Registrar/Sub-registrar	₹30 lakh or more
Buyback of shares	Listed Companies	₹10 lakh or more
Time deposit (FDs, RDs)	Banks/Post Office	₹10 lakh or more
Cash received for goods/services	Any person liable for audit	₹2 lakh or more

Note: Thresholds apply on a per-transaction or aggregate basis.

Due Date for SFT Filing – FY 2024-25

The due date to file SFT for the financial year 2024-25 is:

🗓️ May 31, 2025

Filing must be done in Form 61A through the Income Tax Reporting Portal using Digital Signature Certificate (DSC).

How to File SFT (Form 61A)

1. Register
   on the Reporting Portal (https://report.insight.gov.in)
2. Download
   the SFT utility and schema from the portal.
3. Prepare
   the report in the prescribed format (XML).
4. Validate
   and sign the report using DSC.
5. Upload
   via the Reporting Portal and keep the acknowledgment for records.

Penalty for Non-Compliance

Nature of Default	Penalty
Failure to file SFT	₹500 per day (up to ₹1,00,000)
Failure to furnish correct information	₹50,000
Inaccurate or false information	₹50,000

If notice is issued for non-filing and the default continues, the penalty can go up to ₹1,000 per day.

Why SFT Filing is Crucial

• Avoid income tax notices or scrutiny
• Maintain financial credibility
• Fulfill statutory obligations
• Prevent hefty penalties

Conclusion

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