There is a reporting requirement for reporting of all specified financial transactions undertaken during the previous financial year i.e. FY 2020-21. A Return of Statement of Financial Transaction (SFT) is required to be filed in Form 61A by 31-May-2021.
Transactions Required to be Reported
(The below table excludes reporting requirements for Banking Companies, Mutual Funds, Nidhi Companies, NBFCs and Authorized Persons as per FEMA)
| Sr. No. | Reporting Person | Nature of Transaction | Value of Transaction |
| Investments | |||
| 1 | Company or institution issuing bonds or debentures | Receipt from any person 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). | Amount aggregating to Rs. 10 Lakhs or more in a financial year |
| 2 | Company issuing shares | Receipt from any person for acquiring shares (including share application money) issued by the company. | Amount aggregating to Rs. 10 Lakhs or more in a financial year |
| 3 | Company listed on a recognised stock exchange purchasing its own securities | Buy back of shares from any person (other than the shares bought in the open market) | Amount aggregating to Rs. 10 Lakhs or more in a financial year |
| Cash and other Transactions | |||
| 4 | Any person who is liable for audit under section 44AB of the Act | Receipt of cash payment for sale, by any person, of goods or services of any nature | exceeding Rs. 2 Lakhs |
| 5 | Payments made by any person of an amount aggregating to- | Payments made by any person of an amount aggregating to- | |
| (i) one lakh rupees or more in cash; or | (i) one lakh rupees or more in cash; or | ||
| (ii) ten lakh rupees or more by any other mode, against bills raised in respect of one or more credit cards issued to that person, in a financial year. | (ii) ten lakh rupees or more by any other mode, against bills raised in respect of one or more credit cards issued to that person, in a financial year. | ||
| Dividend Income | |||
| 6 | A company | Dividend Income | No threshold |
| 7 | A company | Deemed Dividend as referred to under Section 2(22)(a) to (e) | No threshold |
| Foreign Currency Transaction | |||
| 8 | Expense in foreign currency through a debit or credit card or through issue of Travellers Cheque or Draft or any other instrument. | Aggregating to 10 lakh rupees or more in a financial year. | |
Non-furnishing of SFT within the due date may attract a penalty of Rs. 500 per day.
