The CBDT has issued a press release dated 26th May 2017 by which it has provided important clarification on furnishing Statement of Financial Transaction (SFT) & SFT Preliminary Response u/s section 285BA of the Income-tax Act, 1961 read with Rule 114E of the Income-tax Rules, 1962. The due date for filing such SFT in Form 61A is 31st May 2017.
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, 26th May, 2017.PRESS RELEASE
CBDT Issues Clarification on furnishing Statement of Financial Transaction (SFT) & SFT Preliminary Response
Section 285BA of the Income-tax Act, 1961 requires furnishing of a statement of financial transaction (SFT) for transactions prescribed under Rule 114E of the Income-tax Rules, 1962. The due date for filing such SFT in Form 61A is 31st May 2017.
In case there are reportable transactions for the year, the reporting person/entity is required to register with the Income Tax Department and generate Income Tax Department Reporting Entity Identification Number (ITDREIN) The same can be generated by logging-in to the e-filing website (https://incometaxindiaefiling.gov.in/) with the log in ID used for the purpose of filing the Income Tax Return of the reporting person / entity. Entity having PAN can take only PAN based ITDREIN. Entity having TAN can generate an ITDREIN only when such TAN’s Organisational PAN is not available.
The registration of reporting person (ITDREIN registration) is mandatory only when at least one of the Transaction Type is reportable. A functionality “SFT Preliminary Response” has been provided on the e-Filing portal for the reporting persons to indicate that a specified transaction type is not reportable for the year.
Detailed procedure of ITDREIN registration and upload of Form 61A is available under the “Help” section and Form 61A utility and Schema are available under the download section of https://www.incometaxindiaefiling.gov.in and https://www.cleanmoney.gov.in. Online filing of form 61A requires a valid class 2 or 3 digital signature certificate of person responsible for filing the same. Please refer “DSC Management Utility” manual under help section on how to generate the signature file, attaching the XML with signature and uploading of XML with signature file in e-Filing portal.
(Meenakshi J Goswami)
Commissioner of Income Tax
(Media and Technical Policy)
Official Spokesperson, CBDT.
To buttress the foregoing view/ supply more food for thought on:
< WHY to say so ?-
The fallacy lies in failure to diligently note that,-
(1) Sec 285 BA , in terms requires furnishing a statement OF financial transactions or OF re-portable accounts- NOT one of 'NO' such transactions or accounts.
(2) There has been a misconception/ convoluted thinking in similarly failing to note that, – the person required to comply may be an 'assessee' in the normal course, also a specified person; but that does not mean, or imply, that every assessee , whether a specified person or not has to comply.
To specially note that, – a person expected to comply may not be an 'assessee' ; see the special definition/meaning of the term 'assessee' , or its derivatives such as- 'assessee in default', 'representative assessee' or any other, as used in the different contexts of the IT Act.
INSTANT
As selected:
“IN CASE THERE ARE REPORTABLE TRANSACTIONS for the year, the reporting person/entity is required to register with the Income Tax Department and …..” (FONT supplied)
And, Read n further..
As understood, – contrary to the view aired in certain limited circle, impulsively so,- re-portable transaction(s) is a precondition for compiling with the filing requirement. To be precise, the question of filing a ‘nil’ statement, by a specified person /entity, should there be no re-portable transaction (s), is a non-starter !