Statement of Financial Transactions (SFT under Section 285BA): Reporting Thresholds & Avoiding High-Value AIS Inquiries

Published: February 15, 20256 min readEffective: Annual Reporting by May 31Due: May 31 following the financial year end

View Official Gazette / Govt Source Consult Senior Partner

Executive Regulatory Summary

Banks, registrar offices, mutual funds, and credit card companies report high-value transactions directly to the Income Tax Department under Section 285BA via Form 61A. Comprehensive breakdown of reporting thresholds for cash deposits, property registrations, credit card spends, and share investments.

Key Statutory Takeaways

Cash deposits or withdrawals in current accounts aggregating ₹50 Lakh+ reported under SFT-004.
Cash deposits in savings accounts aggregating ₹10 Lakh+ reported under SFT-005.
Credit card bill payments exceeding ₹10 Lakh via banking channels or ₹1 Lakh in cash reported under SFT-003.
Purchase or sale of immovable property valued at ₹30 Lakh or more reported by Sub-Registrars under SFT-006.

Actionable Compliance Checklist for Businesses

Step-by-step advisory measures prescribed by ASGR and CO for immediate adherence:

1Periodically log in to the e-filing portal and review the Annual Information Statement (AIS) and TIS.

2Cross-verify SFT reported credit card expenditures and mutual fund subscriptions against declared sources of income.

3Submit online feedback on AIS immediately if any reporting institution has uploaded erroneous transaction figures.

4Maintain complete bank counterfoils and receipts for all property transactions exceeding ₹30 Lakh.

1. The Role of SFT in Faceless Automated Scrutiny

The Income Tax Department's Project Insight algorithms continuously aggregate SFT data from over thirty thousand reporting entities. Discrepancies between SFT transactions and return disclosures trigger automated campaign notices under Section 133(6) or 148A.

Target Entities Governed by this Notification:

Corporate Treasuries & Finance HeadsHNIs & Business OwnersBanks & NBFC Compliance TeamsTax Auditors

Advisory Published By

CA Vishal Kanojia

Partner - Audit & Corporate Compliance • B. Com, FCA, Bank Branch Auditor

ASGR and CO, Chartered Accountants (Peer Review Certified: #018Xxx)

Statutory Disclaimer: This publication is compiled by ASGR and CO solely for general informational and educational purposes to assist corporate clients and peers in understanding statutory notifications. It does not constitute legal, tax, or formal secretarial advice. Before acting upon any provisions, specific professional counsel should be sought.

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