+91 80078 58173 / +91 99607 18810 adclasses886@gmail.com

Government of India

Ministry of Finance

Central Board of Direct Taxes

Directorate of Income Tax (Systems)

Notification No.1 of 2023

Addendum to Notification 2 of 2021: Format, Procedure, and Guidelines for submission of Statement of Financial Transactions (SFT) for Interest income (Abolishing of the limit of Rs 5000/-

Section 285BA of the Income Tax Act, 1961, and Rule 114E requires specified reporting persons to furnish statement of financial transaction (8FT). For the purposes of pre-filling the return of income, CBDT has issued Notification No. 16/2021 dated 12.03.2021 to include reporting of information relating to interest income. The Format, Procedure, and Guidelines for submission of Statement of Financial Transactions (SFT) for Interest income were notified via Notification 2 of 2021 dated 20th April 2021.

2. As per sub-rule (4)(b)  of Rule 114E Director General of Income-tax (Systems) shall specify the procedures,  data structures, and standards for ensuring secure capture and transmission of data, evolving and implementing appropriate security, archival, and retrieval policies.

3. The Remarks column point 1 at Annexure A–Guidelines for Preparation of Statement of Financial Transactions (SFT) mentioned “The information is to be reported for all account/deposit holders where cumulative interest exceeds Rs 5,000/- per person in the financial year.

4. The Remarks column in Annexure A is hereby being modified and may be read as  “The information is to be reported for all account/deposit holders where any interest exceeds zero per account in the financial year excluding Jan Dhan Accounts”.

5. In view of the changes mentioned above, the limit prescribed in Notification 2  of 2021 dated 20th  April 2021 stands abolished and this  addendum will come into effect from 05/01/2023

(Govind Lal)

DGIT (Systems)-2, CBDT