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Simple Guide of SFT Compliance Via Genius Tax Software

SFT Compliance By Genius software

Know About Statement of Financial Transaction

Statement of Financial Transaction (SFT) poses the report of the mentioned financial transactions by the particular individual along with the stated reporting financial institutions.

These people who enrol, maintain or record these particular financial transactions are compulsory to submit SFT to the income tax authority or these people authority or agency.

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Specified Financial Transactions

Financial transactions particularly needed to be reported beneath Section 285BA are as follows:

Aggregation Rule for Particle Financial Transactions

As this is seen from the mentioned financial limit for the particular financial transactions except SI No 10 and 11, aggregation is needed to examine if the financial limit gets over.

During aggregating the amount the mentioned below would be remembered:

Rule 1: All accounts that secure the similar nature as mentioned in column (2) of the above table maintained towards that individual in the same FY would consider.

For instance: If Mr A has two savings accounts of Rs 5 lakh each, then check out the financial limit of Rs 10 lakh the amount in both savings accounts is required to be aggregated.

Rule 2: All transactions of that nature as mentioned in column (2) of the table recorded with respect to that individual beneath the Financial year would be aggregated.

For instance: if Mr A buys the shares worth Rs 5 lakhs in September in FY and Rs 6 lakhs in November of that Fiscal year the value of both the shares is required to be aggregated to see the fiscal limit of Rs 10 lakhs.

Rule 3: Inside the case in which the account is maintained or the transactions get recorded in the name exceeding one individual such as joint account, attribute the entire value of the transaction or the aggregated value of all the transactions for all people.

For instance: Mr A and Mr B secure two joint savings accounts of Rs 3 lakhs and Rs 7 lakhs, aggregation of Rs 10 lakhs is attributed to both Mr A and Mr B individually to check for financial limit.

Particular Forms to be Used for SFT Filing

SFT would be submitted either in Form 61A (other reporting entities) or Form 61B (prescribed reporting financial institution). SFT would be submitted in an electronic way beneath the (DSC) digital signature certificate to the Director of Income-tax (Intelligence and Criminal Investigation) or the Joint Director of Income-tax (Intelligence and Criminal Investigation).

SFT will get submitted in an electronic way beneath the digital signature certificate to the director of income tax (Intelligence and Criminal Investigation) or the Joint Director of Income-tax (Intelligence and Criminal Investigation). A Post Master General or a Registrar or an Inspector General might file SFT in a media that a computer reads as a Compact Disc or Digital Video Disc (DVD), along with the verification in Form-V on paper.

Steps to Procedure to Submit SFT

SFT will be submitted via mentioned process:

Last Due Date for Furnishing SFT

SFT in Form 61A will be submitted on or prior to 31st May of the Financial year quickly following the FY where the transactions are to be recorded or enrolled.

The statement of the reportable account in Form 61B will get submitted by the mentioned reporting financial institution towards each calendar year on or prior to 31st May of the subsequent year.

What is Form 61?

As per rule 114B of Income Tax rules 1962, an entity is required to obtain the PAN of the transacting party for the transactions specified. In case transacting party does not have a PAN, Form 60 is to be filled by transacting party. Details of these Form 60 are to be reported in Form 61 for the period 1st April to 30th of September of the financial year by 31st of October and 1st October to 31st March of the financial year by 30th of April.

Import/Export Facility for Preparation of Form 61 Via Genius

Blank as well as detailed export/ import option is also available for the preparation of form 61 of SFT.

Simple Process to Generate a Form 61 Via Genius Return Software

Step 1: Go to SFT ⏩ Form 61 ⏩ Add Statement

Step 2: All The * Mark Fields Are Mandatory

Step 3: Itdrein Will Be Generated From The Income Tax Site By Login To E-filling Portal Using Login Id And Password By Visiting Incometaxefiling.gov.in. Go To My Account ⏩ manage Itdrein ⏩ generate Itdrein

Step 4: Itdrein Should Be In The Format Specified Below

Step 5: Select The Statement Type, However, If There Is No Data To Report Then the Statement Type Should Be Nd

Step 6: Statement Number Should Be In The Format Specified Below.

In Case Original Statement Is Filled Then Statement Id Should Be Zero ‘0’ However, If The Correction Statement Is Filed, Statement Id Of The Original Statement Which Is Being Corrected Should Be Mentioned In The ‘original Statement Id’.

Step 7: Statement Id Should Be In The Format Specified Below.

Report Details: All the * Fileds are Mandatory

The report serial number of the original report that has to be replaced or deleted should be mentioned in the element ‘original report serial number otherwise fill it as zero ‘0’.

The report serial number should be unique within the statement. For example, if one report is submitted then mentioned it as one and if two reports are submitted then mentioned it as two.

What is Form 61A?

As per rule 114e of the, it rules 1962, a reporting entity is required to file a statement of financial transaction in form 61a. A reporting entity has to report in specified SFT reportable transaction of the nature specified in this rule for the relevant financial year on or before 31st of may immediately following the financial year.

Import/Export Facility for Form 61A SFT Via Genius Software

Blank as well as detailed export/ import option is also available for the preparation of form 61a of SFT.

How To Generate Form 61A via Genius Software?

Step 1: Go To SFT ⏩ form 61A ⏩ Add Statement

Step 2: Select The Sft Code According To The Financial Transactions That The Notified Person Want To Report

Step 3: All The * Mark Fields Are Mandatory

Step 4: Itdrein Will Be Generated From The Income Tax Site By Login To E-filling Portal Using Login Id And Password By Visiting Incometaxefiling.gov.in. Go To My Account ⏩ Manage Itdrein ⏩ Generate Itdrein

Step 5: Itdrein Should Be In The Format Specified Below

Step 6: Select The Statement Type, However, If There Is No Data To Report Then the Statement Type Should Be Nd

Step 7: Statement Number Should Be In The Format Specified Below.

In Case Original Statement Is Filled Then Statement Id Should Be Zero ‘0’ However, If The Correction Statement Is Filed, Statement Id Of The Original Statement Which Is Being Corrected Should Be Mentioned In The ‘original Statement Id’.

Step 8: Statement Id Should Be In The Format Specified Below.

STF Form 61A Report: All The Mark Field Mandatory

Step 1: Select the account type of your bank.

Step 2: The Report Serial Number Of The Original Report That Has To Be Replaced Or Deleted Should Be Mentioned In The Element original Report Serial Number Otherwise Fill It As Zero ‘0’.

Step 3: The Report Serial Number Should Be Unique Within The Statement. For Example, If One Report Is Submitting Then Mentioned It As One And If Two Reports Are Submitting Then Mentioned It As Two.

STF Form 61A Personal Details: All The Mark Field Mandatory

Step 1: Select The Type Of Person Example Whether You Are An Individual, Partnership Firm, Sole Proprietorship, etc.

Step 2: Address Details Are Also Mandatory. First Go To Address Details ⏩ Then Add Address Details.

One can easily file SFT returns via Genius tax software by SAG Infotech as it has covered all the compliance as per the government and is topping the return filing solutions for a decade.

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