Central Board of Direct Taxes (CBDT) has issued a Notification No. 16/2021 to enhance the scope of nature of transactions to be reported under Statement of Financial Transaction (SFT) as per Rule 114E.
Sub Rule 5A has been inserted in Rule 114E relating to “Furnishing of statement of financial transaction” of the Income Tax Rules, 1962, to notify that for the purposes of pre-filling the return of income, a statement of financial transaction containing information relating to capital gains on transfer of listed securities or units of Mutual Funds, dividend income and interest income shall be furnished by specified class of persons as mentioned in table below at such frequency, and in such manner, as may be specified by the Principal Director General of Income Tax (Systems) or the Director General of Income Tax (Systems).
| Sl. No. | Nature of transaction |
Class of person (reporting person) |
| (1) | (2) | (3) |
| 1. | Capital gains on transfer of listed securities or units of Mutual Funds | (i) Recognised Stock Exchange;
(ii) depository as defined in clause (e) of sub-section (1) of section 2 of the Depositories Act, 1996 (22 of 1996); (iii) Recognised Clearing Corporation; (iv) Registrar to an issue and share transfer agent registered under sub- section (1) section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992). |
| 2. | Dividend income | A company |
| 3. | Interest income | (i) A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act);
(ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898). (iii) Non-banking financial company which holds a certificate of registration under section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934), to hold or accept deposit from public. |
Henceforth, capital gains on transfer of listed securities or units of Mutual Funds, dividend income from company and Interest income earned by a taxpayer shall now be part of SFT reporting.
Source: Central Board of Direct Taxes (CBDT)
