Reporting of Specified Financial Transactions (SFT) by company under Income Tax Act for FY. 21-22 by 31st May, 2022

Section 285BA of the Income Tax Act, 1961 and Rule 114E of the Income-tax Rules, 1962 require specified reporting persons to furnish Statement of Financial Transaction (SFT) or Reportable Account 

Kindly note that SFT reporting would be applicable to companies in case of:

1. Receipt from any person of an amount aggregating to ten lakh rupees or more in a financial year for acquiring bonds or debentures issued by the company or institution (other than the amount received on account of renewal of the bond or debenture issued by that company).

2. Receipt from any person of an amount aggregating to ten lakh rupees or more in a financial year for acquiring shares or right shares (including share application money) issued by the company.

3. Dividend distributed during the financial year.

4. Buy-back of shares from any person (other than shares bought in the open market) for an amount aggregating to ten lakh rupees or more in a financial year by a company listed on a recognized stock exchange.

5. Receipt from any person aggregating to ten lakh rupees or more in a financial year by a trustee of Mutual Fund for acquiring units of one or more schemes of Mutual Fund.

If any of these transactions have taken place in FY 2021-22, then the company is liable to file SFT Return in Form 61A for FY 2021-22 by 31st May, 2022