SFT Filings in India – Statement of Financial Transactions Compliance What is SFT Filing in India? The Statement of Financial Transactions (SFT) is a mandatory compliance requirement under the Income Tax Act, 1961, which requires specified entities to report high-value transactions to the Income Tax Department. Entities like banks, NBFCs, mutual fund houses, registrars, and companies must file SFT returns annually to ensure financial transparency and reduce tax evasion. At The StartupLab, we provide expert SFT filing services in India, ensuring businesses stay compliant with Income Tax rules without errors or penalties.
Why SFT Filing is Important?
✅ Mandatory compliance under the Income Tax Act ✅ Avoid penalties and notices from the IT Department ✅ Builds credibility and financial transparency ✅ Reduces the risk of tax litigation ✅ Works alongside Corporate Compliance Services and Annual Compliance Filings
With our expertise, your SFT return filing in India will be smooth, accurate, and timely—ensuring complete compliance with government regulations.
Who Needs to File SFT Returns? As per Rule 114E of the Income Tax Rules, the following entities must file SFT returns if they cross specified thresholds: ● ● ● ● ●
Banks & NBFCs Mutual Fund Companies Listed & Unlisted Companies Post Offices Registrars / Sub-Registrars
● Cooperative Banks & Societies ● Professionals or entities specified under Income Tax law
Transactions Reported in SFT Filing Some examples of reportable financial transactions include: ● ● ● ● ● ● ●
Cash deposits > ₹10,00,000 in a financial year Credit card payments > ₹1,00,000 (cash) or ₹10,00,000 (non-cash) Purchase/Sale of immovable property ≥ ₹30,00,000 Investments in shares, bonds, debentures > ₹10,00,000 Mutual fund investments exceeding ₹10,00,000 Buyback of shares by a company ≥ ₹10,00,000 Foreign remittances or high-value fixed deposits
SFT Filing Process in India 1. 2. 3. 4. 5.
Identify Applicability – Check if your entity crosses transaction thresholds. Collect Information – Transaction data, PAN details, and customer records. Prepare XML Utility – Use ITD SFT reporting utility. Submit Online – File return via Reporting Portal on the ITD system. Acknowledgement & Confirmation – Download and save proof of submission.
Due Date for SFT Filings The due date for SFT filing is 31st May every year for the preceding financial year.
Penalties for Non-Compliance in SFT Filing Failure to file SFT return, incorrect filing, or late filing attracts penalties: ● ₹500 per day for late filing (if before notice) ● ₹1,000 per day after notice from ITD
● Monetary fines & compliance risk under the Income Tax Act
Cost of SFT Filing Services in India ● Basic SFT Filing Assistance – ₹7,500 – ₹12,000 ● SFT Filing with Compliance Advisory – ₹15,000 – ₹25,000 ● Full Compliance Package (SFT + GST + ROC) – Custom Pricing
Related Compliance Services ● ● ● ● ● ●
Corporate Compliance Services Annual Compliance Services FLA Filings GST Registration & Filings Virtual CFO Services Business Valuation Services
FAQs on SFT Filings in India Q1. What is the due date for SFT filing in India? A: The last date is 31st May every year for the preceding financial year. Q2. Who is required to file SFT return? A: Banks, NBFCs, post offices, mutual funds, and companies handling high-value transactions must file. Q3. What transactions are reported under SFT? A: High-value cash deposits, mutual fund investments, property sales, and share buybacks, among others. Q4. What happens if I don’t file SFT return? A: You may face daily penalties and scrutiny from the Income Tax Department. Q5. How can The StartupLab help with SFT filings? A: We offer end-to-end SFT filing services in India, including data preparation, portal submission, and compliance advisory.
Final Thoughts SFT filing is a vital compliance requirement for entities handling high-value transactions in India. Non-compliance can lead to heavy penalties and IT scrutiny. With The StartupLab’s professional SFT filing services, you can ensure accurate, timely, and hassle-free compliance with Income Tax law.
📞 Contact us today for SFT filing, Income Tax compliance, and annual reporting services tailored for Indian startups and companies.
