What to do when your 26AS indicate SFT transactions?

What to do when your 26AS indicates SFT transactions
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Last updated on September 20th, 2022 at 02:19 pm

What to do when your 26AS indicates SFT transactions?

New 26AS and SFT filing requirements

CBDT in May 2020, vide notification 30/2020 notified the revised form 26AS to make it more comprehensive. In addition to including the regular information relating to tax deducted or collected at source (TDS/TCS), payment of taxes, refunds, and proceedings, the form will now also include “Information relating to some specified transactions in Statement of Financial Transactions(SFT)” with effect from 1 June 2020.

So, if you download your 26AS for FY 2021-22 now and if you have done any specified financial transaction in that year, it will get reflected in “Part E” of your new 26AS.

Which transactions are to be reported in SFT and who is responsible to file them?

The government is continually trying to keep a tab on black money and high-value transactions undertaken by the taxpayer. Its en-devour to achieve this, the Income-tax Law has introduced the concept of the statement of the financial transaction. This was previously called ‘Annual Information Return (AIR)’.

A statement of the financial transaction also called a reportable account, is required to be filed by certain prescribed entities (discussed below in detail), and by filing Form 61A furnishing the details of specified financial transactions during the year. On the basis of the information provided in the statement of financial transactions, the IT Department keeps a track of the transactions carried on by the taxpayer. Hence it is important for the taxpayer to check the SFT transactions appearing in their 26AS.

As per Section 285BA of the Income Tax Act, 1961 w.e.f 01-04-2015, the following persons are specified entities who are required to furnish a reportable transaction registered/recorded/maintained by them during the financial year to the income-tax authority. Predominantly, the following transactions are covered as “Specified Financial Transactions“.

  1. Cash payments for issuance of DD or pay orders or any other bank instruments in excess of Rs 10 lacs.
  2. Cash deposits or withdrawals in excess of Rs 50 lacs.
  3. Time deposits other than renewals in excess of Rs 10 lacs.
  4. Credit card payments in excess of Rs 1 lacs.
  5. Investment in bonds and debentures in excess of Rs 10 lacs.
  6. Purchase/sale of foreign currency in excess of Rs 10 lacs.
  7. Purchase or sale of immovable property.
  8. Sale of goods or services in cash in excess of Rs 2 lacs for persons liable for tax audit u/e 44AB.
  9. Cash deposits up to certain amounts during the demonetization year i.e. from 1st April 2016 to 31st December 2016.

(Click here to read the detailed provision )

In August 2020, the news mentioned that the government is widening the scope of SFT to include transactions like hotel expenses exceeding Rs 20,000/- payments of rent in excess of Rs 40,000/- etc. However, the formal notification in this regard is still awaited.

Who is responsible to file the Specified Financial Transaction report?

The responsibility to file SFT depends and differs based on the transaction. Remember, SFT is a tool for the government to identify the transactions that can attract taxes and makes it easier for the government to check whether the taxes are paid / returns are filed by the respective taxpayers. Hence, the information is collected by various authorities. For eg:

Transaction Reporting person
Cash payments in DD or pay orders or any other instruments in excess of Rs 10 lacs Banks including co-operative banks
Time deposits in excess of Rs 10 lacs Banks including co-operative banks, Post Office, Nidhi Company, NBFCs
Purchase or sale of immovable property Inspector General, Registrar or Sub-registrar

(Click here to read the detailed provision and reporting persons in detail)

In nutshell, if you have purchased or sold an immovable property during the relevant FY, then the concerned Registrar must have reported the same by filing SFT or Form 61A and the details of the same would be appearing in your New 26AS.

What to do when your New 26AS indicates SFT transactions?

As mentioned earlier, SFT transactions incurred by you will be reported by the respective reporting entities to the IT department. In case your 26AS incorporates these transactions, you simply need to ensure that the income related to those transactions has been duly offered to tax / accounted for. Any mismatch or discrepancy between the high-value transaction viz-a-viz the tax return filed by the assessee can trigger the issuance of notices by the IT officers.

For eg. If you have done a Fixed Deposit with a bank for say Rs 15 lacs during the FY, then the same will appear in 26AS as per the reporting done by the bank. You have to ensure that you have appropriately accounted for the income from which FD is made and interest income earned from that FD while filing your tax return.

So, the SFT transactions appearing in your 26AS are correct and you are accurately filing tax returns, just go ahead and file your ITR the same as in a normal scenario.

What do abbreviations like O/R/C in the remarks column stand for?

A brief idea of what the abbreviations in the remarks column stand for
O” in the remarks column means ‘Original Statement uploaded by SFT Filer’
R” in the remarks column means ‘Reversal of Entry in Original/Correction Statement uploaded by SFT Filer
C” in the remarks column means ‘Correction/Rectification of error in Statement uploaded by SFT Filer

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CA Janhavi Phadnis

 

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186 Comments

  1. What is the procedure if the reporting person has wrongly shown SFT transaction in my PAN

  2. There is an entry provided below in Form 26AS:
    1 SFT-005 Time Deposit
    STATE BANK OF INDIA, STATE BANK BHAVAN 3RD FLOOR FRT
    DEPARTMENT MADAME CAMAE ROAD NARIMAN POINT, MUMBAI,
    MAHARASHTRA, INDIA, 400021
    – (-572553.00) O
    What does this mean? and what is the tax liability?
    Please advise

  3. There is an entry reported by SBI under STF 005 on asking for the details they sent us a list in which Term Deposits in my wife’s 1st name have also been clubbed against my PAN , is this the correct interpretation by SBI . As the same Term Deposits are also Duplicated and Reported against her STF 005 Entry .
    If such entries are to be Double reported against PAN’s then what is the benefit of STF 005 if these are not PAN specific

    • That is not a correct interpretation done by SBI. If tax is being paid on the interest income earned by your wife on that FD then you need not worry about the incorrect reflection of the entry in your 26AS as well.

  4. There is an entry provided below in Form 26AS:
    FT-004 Cash deposit (Other than Current Account) UCO BANK, 2 india exchange 10 B T M SARANI BBD BAG, KOLKATA, WEST BENGAL, INDIA, 700001 – 206200.00 O

    What does this mean? and what is the tax liability?
    Please advise

    • If the entry reflecting in Part E of SFT 004 is correct – No action is required.
      If the entry reflecting in Part E of SFT 004 is INCORRECT – Please raise a grievance ticket on the IT portal as well as write to the bank for the amendment.

  5. My daughter’s 26as from reflects Rs327556.00 as STF005.What action will be initiated by me Pl advice.

    • If the entry reflecting in Part E of SFT 005 is correct – No action required.
      If the entry reflecting in Part E of SFT 005 is INCORRECT – Please raise a grievance ticket on IT portal as well as write to bank for the amendment.

      • Hello, if the details of SFT 005 mentioned is correct, but for wrong assessment year, then what has to be done? For example, there is a transaction done in Assessment year 23-24, but reported in assessment year 22-23, what has to be done?

        • You can submit feedback to AIS. And you can also write to the concerned bank or reporting entity to make the changes. Please keep a copy of such communications made as a proof which can be reproduced in case of notice is issued by Department.

  6. There is an entry under Part-E-SFT005 Time deposit in form 26as Rs327556.What does this mean? Please advise.

    • If the entry reflecting in Part E of SFT 005 is correct – No action required.
      If the entry reflecting in Part E of SFT 005 is INCORRECT – Please raise a grievance ticket on IT portal as well as write to bank for the amendment.

    • Dear Sir / Madam,

      SFT-012 Purchase or Sales of Immovable Property : In the Form 26AS there are two 902) entries being shown for single property purchase with Remarks mentioned as “O”. What should be the next step / action by us for this.

    • If the entry reflecting in Part E of SFT 006 is correct – No action is required.
      If the entry reflecting in Part E of SFT 006 is INCORRECT – Please raise a grievance ticket on the IT portal as well as write to the bank for the amendment.

      • SFT006 transaction reporting in 26AS for American express worth of rs. 18 lacs and Axis Bank worth of rs. 10 lacs,most of the transaction are online rent payment and money transfer which is credited into my family members account just to earn rewards point and cashback on credit card nothing else, my annual salary is rs. 13 lacs, pls suggest i want to file ITR 1, what precautions to take while filing ITR

        • You can file ITR 1. As mentioned above your salary is 13 lacs and you have transactions of rs 28 lacs through credit card. If a notice is issued to you, you will be required to explain the source of income for repayment of credit card bills. If it is from your savings and current salary and reward points then no issues at all.

  7. Sir,I take personal loan (1400000 appx) from bank and deposit in my saving account for a period six months appx. And now SFT-005 Time deposit Amount (-15688) in negative what actions I can required

  8. I have an entry against SFT 005 and I cannot relate the amount to any transactions. I do have deposits that can come in SFT 005 but this is completely a different figure. The bank is not responding and keeps sending me TDS certificates instead of understanding what I ask. What should I do?

    • Please raise a grievance ticket on the IT portal as well as write to the bank for the amendment.

      They may not respond to the same, but it serves as a documented record in the case assessment proceedings are initated.

  9. I had received amount of more then 10 lacs in my account as a nominee from health insurance after my father’s death and it is shown as SFT-005 time deposit transaction in my 26AS. Will I be taxed on this amount, if yes then what percentage and if no then please confirm.

  10. There is an entry provided below in Form 26AS:
    1 SFT-005 Time Deposit
    STATE BANK OF INDIA, STATE BANK BHAVAN 3RD FLOOR FRT
    DEPARTMENT MADAME CAMAE ROAD NARIMAN POINT, MUMBAI,
    MAHARASHTRA, INDIA, 400021
    – (-1732542.00) O
    What does this mean? and what is the tax liability?
    Shall I show it in ITR-1 and where?
    Please advise

    • If the entry reflecting in Part E of SFT 005 is correct – No action is required. Make sure interest income is correctly shown in ITR.
      If the entry reflecting in Part E of SFT 005 is INCORRECT – Please raise a grievance ticket on the IT portal as well as write to the bank for the amendment.

      For any specific concerns get in touch with our team of experts on info.financepost@gmail.com

  11. Form 26AS, in part E, i found SFT-04 cash deposit in two accounts is over 10 lakhs and in remarks column its O.
    what this means. what is my steps for this

    • It means more than Rs 10 lakhs cash was deposited in your accounts.

      If it is correct no need to take any action. If it is incorrect – please write to your bank for correction and raise a grievance ticket on the IT portal for the same.

      For any specific concerns get in touch with our team of experts on info.financepost@gmail.com

  12. My query is related to SFT005-
    a. Say in one bank A my FD of Rs 11Lakhs matures and to get more
    interest I online transfer the amount 11 Lakhs to bank B and make
    fixed deposit of Rs 11Lakhs in bank B. Bank B will report it in
    SFT005. As principal amount Rs11Lakhs is non taxable, where to show
    this Rs 11Lakhs in my Income tax return One(ITR1) to make it non
    taxable.
    b. Say in bank A I got FD matured of Rs11lakhs. Aftermoney is
    received in saving account I make fixed deposit of Rs 11Lakhs in bank
    A. Bank A will report it in SFT005. As principal amount Rs11Lakhs is
    non taxable, where to show this Rs 11Lakhs in my Income tax return
    One(ITR1) to make it non taxable.

    • The principal amount of FD received upon maturity is never taxable and you need not show it anywhere while filing the income tax return. Only the interest earned on the FD would be taxed on the accrual basis.

  13. In my form 26s in Part E, Seven entries of each 2,71,533/-are entered by a MF company in which four are + positve entries and three are -negative. What is the meaning of it. Can anybody explain?.

    • Looks like an error was made by the MF company. You may write to them for correction, chances of correction by them are negligible. But this would serve as proof in case your case comes under assessment.

  14. an amount of 3132144.00 -SFT- time deposit -marked as O, shown in my 26 as, please advice me.

    • This means you have an amount of Rs.31,32,144.00 as time deposits. “Marked as O” stands for the original.

      Please make sure interest income is included while filing ITR.

  15. Hi Sir, In 26AS its mentioned in Part E SFT-06 Rs 1800000 (Its Correct I have used credit card). Is any action I have to take?. Is it any problem to do my ITR please suggest me.

  16. In 26as shown SFT 005 Time Deposit Rs.43,164/-
    What does it mean. what I have to do in ITR filing. Please send reply

      • time deposit has to be reported if more than 10L only right
        why some small amounts are reported and some re not?

        • Based on the instructions issued by the government and reading the relevant section, reporting is required only for time deposits above Rs 10 lacs in SFT. But certain banks are reporting for lower/small amounts voluntarily.

  17. I have only income of less than 5 lakhs and in my 26a/s it shows a sft-006 for using credit card for more than 10 lakhs , how do I file the it return ?? generally I was filing itr-1 previously but i am confused how to show the 10 lakh rupees transaction in ITR-1. please help

    • Based on the facts provided above. Details of the credit card are incorrectly reflecting in your 26AS. So you need to write to the bank and ask for a correction.

  18. Hi Sir, In 26AS for AY21-22 SFT-005 is Rs 12,00,000.00 with no transaction date and Remarks “O”. This is NRE Deposits opened from abroad savings. How to show this in ITR-2 form. Please suggest.

  19. time deposit has to be reported if more than 10L only right
    why some small amounts are reported and some re not?

    • Based on the instructions issued by the government and reading the relevant section, reporting is required only for time deposits above Rs 10 lacs in SFT. But certain banks are reporting for lower/small amounts voluntarily.

  20. Nobody has answered on the following.
    That I transferred maturity proceed of a fd after TDS by bank to another bank and made new FD .The new FD is shown in partE of 26AS.what action to be taken by me in itr Filing? It is not income because it is invested from maturity amount of earlier fd.Interest also shown in Form 16A and tds made by bank and deposited to govt.what to do in such a scenario?

  21. Hi Sir, In 26AS for AY21-22 SFT-005 is Rs 11,32,000.00. What does it mean?
    1. Is it the total amount of FD that I created for FY 2020-21?
    2. If a FD gets matured in FY 2020-21 and I again put all the amount say 5L (principal+interest) for a new FD, Would 5L be included into SFT 005 of FY 2020-21?
    3. Do I need to show this amount anywhere while doing return file?
    4. Can funds be transferred to spouse account to open FD, who is non- working? If yes, what is limit per FY?

  22. My 26AS shows SFT-005 Time deposit – STATE BANK OF INDIA, STATE BANK BHAVAN 3RD FLOOR FRT DEPARTMENT MADAME CAMAE ROAD NARIMAN POINT, MUMBAI, MAHARASHTRA, INDIA, 400021. Its of amount INR 627468.00 which is less than 10 lakhs. I did not find any transaction or FD which matches this amount. Also I do not know what I should do against this amount in my ITR1 filing ?Bank is not giving me any response. How should I write to the SBI bank of the address they have given above ? The branch is not ready to help at all.

    • If you are sure no such transaction has been made by you. You may ignore the same while furnishing your ITR. It is possible while uploading details an incorrect entry would have been made by the bank. For being on the safe side, you can write/email to the bank for the above and keep a copy for your reference.

  23. Hi, in my 26AS SFT05 of 32lakh is reported it is the the amount of house property that I purchased. Do I need to show this in my ITR or where to show?

  24. IN 26AS SHOW ME SFT-008 PURCHASE OF SHARE 15000 ORIGINAL
    AND NEXT SHOW SFT-008 15000 NEGETIVE
    DO I NEED TO SHOW THIS IN MY ITR OR WHERE TO SHOW?

  25. If my FD booked in FY 2019-20 for Rs. 25 lacs and the same is matured in FY 2020-21 and credited to my savings Bank account. Will the said FD will be reflect in my SFT 005 for both the years i.e. FY 2019-20 as amount received (for booking fresh FD) and in FY 2020-21 as amount paid (for credit of FD maturity proceeds)? Please guide.

  26. I am have become an NRI from 2020, and was not planning to file the ITR for AY 2022, however my Form 26AS shows an entry under SFT-006 (which is correct and corresponding to some credit card transactions done over the year). Kindly suggest, whether I need to file the income Tax return now?

    • If you are NOT earning income that is required to be taxed in India.

      In that case, you may ignore filing return just for the sake of visibility of credit card transactions in 26AS.

  27. SFT shows some amount accumulated with interest on FD.
    That amount is invested in immovable property, Do a pensioner individual need to show his investments in that immovable property which are made out of his matured FD.?

    • Interest on FD will be taxed under the head Income from other sources.

      There is no requirement to show the purchase of immovable property in ITR if you are a pensioner.

  28. one of my uncle was purchased Mutul fund worth Rs 1362430 and it was reflecting in 26AS in sft part E colunm and how to show in ITR 1

    • You don’t have to show purchases in mutual funds in the income tax return. 26AS will show a summary of all specified transactions linked to your PAN. If the investment is made from genuine income, you need not worry and file your return.

      For any further query or return filing, you can reach out to our team at info.financepost@gmail.com

  29. Sale of immovable property (SFT 012) is showing in sft statement. How to respond kindly advise.

    We have already purchased under construction property in 28jun2017. Possession we got in March 2019 for received funds and above registration was delay by buyer due to COVID lockdown and his personal reasons.

  30. In SFT-006 Showing 2.6Cr
    Actually I made this blunder by recycling of funds through e-wallet
    Loading Money into e-wallet and pay through same loded money
    Never made any purchase just recycled
    I have done this because, there was offer of Be A Top Spender and was unaware of SFT 006
    Now please tell me what do i do if gets notice?

    • You should not worry about the same. Just in case a notice comes you can explain the same. They will definitely be able to see from records that there is no purchase.

  31. Hello Mam/Sir,
    I had purchased a flat worth 42lk with govt price 51lk jointly with my wife using personal savings. My 26A showing 10lk as time deposit and 51lk as sale/purchase in SFT section. Do I need to do anything in my IT Return filing or can i claim any benefit from it ?

  32. If I did a cumulative FD in 2018 for 3 yrs, and this fd matured in FY 2020-21 then SFT-016 under AIS for FY 20-21 should interest on this fd accrued/ earned only in FY 20-21 or total cumulative interest accrued in previous years and paid in FY 20-21 as this amount will not match with form 26AS and interest statement. Please advise

    • You would have already paid the tax on interest or shown the interest income in your ITR in the earlier years.

      You don’t have to again pay tax on the interest income earned in earlier years.

      • In my father’s 26As SFT 04 showing 10lacs cash deposited. So plz suggest me to what to do while filling itr

        • Hello Bijay

          It would be visible as cash would have been deposited And that would be due to his income in cash. Just make proper disclosure of his income and pay taxes and the file ITR.

  33. My wife and her two siblings and mother inherited a substantial amount from the sale of her fathers factory and as per his will. The capital gains tax is paid fully. The share received by my wife was invested in FD’s and one of the FD’s is reflecting in Form26AS SFT section. How or where is the inheritance amount to be shown in her ITR-2 ? Should I show it in Exempt Income ->Any other exemption option ?

    • You don’t have to show the inheritance amount in your ITR anywhere. Make sure you have a copy of will, copy of sale deed, and other required documents if your wife’s case is selected for assessment. Interest earned on the FD will be taxable in the hands of your wife.

      For any further queries, you can reach out to us at info.financepost@gmail.com

      • Thank you for the clarification. Just a follow up question – subsequently the inherited amount was distributed equally by my wife to our two kids over a period of time in installments. Do the children have to show the gift in their IT return ?
        How should this gift be treated from the tax perspective and is there a document required to prove the gift ? Appreciate if you can point to the format/draft of any such document.

  34. 26AS does not have any detail of the FDs and Saving account interest from my bank. But I do have the interest earned during this assessment year. Do I need to report the interest in ITR, or Can I skip it?

  35. Hi, I had given amount of 10 lac to my close relative through cheque & he returned it through cheque only. Now it is showing in SFT. Where can I disclose the information while ITR Filing.

    • If the amount was given to a close relative on interest then such interest should be taxed under the head IFOS.
      If the amount was given to a close relative without interest then you need not show it anywhere in the ITR.

      In case a notice comes you should be able to explain why it was given interest-free.

  36. an amount of 1,80,000 -SFT- time deposit -marked as O, and in the next entry same amount is coming is coming with a remark R, what does it mean and what do I need to do?

    • Abbreviations in the remarks column stand for

      “O” in the remarks column means ‘Original Statement uploaded by SFT Filer’
      “R” in the remarks column means ‘Reversal of Entry in Original/Correction Statement uploaded by SFT Filer’
      “C” in the remarks column means ‘Correction/Rectification of error in Statement uploaded by SFT Filer’

      Hope the simple understanding of abbreviations will help you clear your doubts.

  37. Who is liable to file form 26QB? and if i have not filed any 26QB form , then how can I get notice from IT dpet for dicrepancy in 26QB?

  38. SFT 005 of 0(zero) amount shown in 26 AS. I have done FD but what does this 0(zero) means in SFT 005 amount column

      • SFT only has to be filed if one has done FD more than 10 lac then why in 26AS zero (0) amount shown in SFT 005 column. I have done FDs many times of 7 days then they mature – again i have done FDs of 7 days and again they mature. I have reinvested them again and again in FDs of 7 days. if i see overall reinvesting of FDs(invested again and again for a period of 7 days) then they cross 10 lac limit. But i don’t understand why zero(0) amount is shown in 26 AS in SFT 005 column

        • One or more time deposits (other than a time deposit made through renewal of another time deposit) of a person aggregating to Rs. 10 lakh or more in a financial year of a person.

          In your case it is renewal hence it would not be reflected as zero against SFT 005.

          • SFT only has to be filed if one has done FD more than 10 lac then why in 26AS zero (0) amount shown in SFT 005 column. I have done FDs many times of 7 days then they mature – again i have done FDs of 7 days and again they mature. I have reinvested them again and again in FDs of 7 days. if i see overall reinvesting of FDs(invested again and again for a period of 7 days) then they cross 10 lac limit. But i don’t understand why zero(0) amount is shown in 26 AS in SFT 005 column(not renewed Fds but again make fresh FD when it gets credited into account after 7 days and so on

          • I have done FDs for a period of 7 days below 10 lac, then after maturity the amount came to my account, again make fresh FDs below 10 lac for 7 days , then again after maturity amount came to my account. Like this I have done FD 30 times( make fresh FDs for 7 days after FD amount get credited into my account (not reinvested FDs), and If I total these 30 FD which were again and again done by me ( not reinvested FD , I have only and only make fresh FDs for 7 days after one FD get matured and get credited into my account ) and if I total all these FD done by me , they cross 10 lac limit but I don’t understand why bank has reported zero(0) amount in my 26 AS.in short instead of reinvesting the FD again and again, I make fresh FDs again and again. Pls answer

  39. Sir, In My 26AS F.Y 2020-21 (SFT 006 around 16 Lac spent ny SBI Cards Division…., Mumbai ( May be i have used my Credit Card limite multiple times) in this connection how can id deal with this ( My Present Package is 6.8 Lac CTC) am a private employee

    • Hello Ajay,

      From the limited information provided above, I understand that your total income is lesser than the expenses you have incurred through your credit card. It is likely you will be asked to explain the source of income for the expenditure incurred. You should be ready with the details.

  40. It is written in 26AS in SFT 005 remarks ‘O’ that original statement uploaded by SFT filer. Then where is the original statment uploaded and how can we download that statement uploaded by SFT filer.

    • “O” is for original
      “R” is for revised
      “C” is for correction/rectification

      It means it is the original entry uploaded by the SFT filer and there was no revision or correction after uploading by the SFT filer. You can not download the statement uploaded by the SFT filer. You can download your AIS for detailed information.

  41. Hello, I am an NRI working in Muscat since 1995.I do take NRE FD’s jointly in my name and my wife(housewife). FD’s above 10 lahks (in total) have been reported by Canara Bank in SFT , This is reported both for my wife and myself. These FD’s are taken from NRE Account from funds remitted from Oman to my NRE Bank Account…

    Secondly we had purchased a house property(jointly) from our NRE funds only which is reported in both our SFT.

    Kindly advise what action do we have to take.

    • As per section 10(4) of the Income Tax Act, the interest on NRE FD or the interest on the NRE savings account is not taxable.

      An NRI is required to file ITR in India in order to disclose the rent or capital gains arising from the property situated in India.

      If you have filed ITR and paid the taxes required, you need not worry about what is reflecting in SFT.

  42. Hi Team,I got a SMS from ITR department Saying that “higher value Transaction”.

    one of my friend used my credit card above 50 lacs, so it is showing in sft006,how can we give the resolution to the ITR department in such cases please do let me know.

    • It is advisable that credit card is used by you and not by your friends. Especially when the amount involved in the transaction is significant. It is likely that a notice might be issued and you would be required to explain the transactions and the source of payment.

  43. Hello sir
    In tis it is showing sft005 reported value 2102746 and in 26as it is showing sft 005 -36899. I cannot able to understand this amt as they are showing information notice sbi.
    I don’t have any high amount fixed deposit. Is this related to credit card or House property

  44. Hi
    I have 2 lac mod and I did FD like
    1. FD of 7 lac for 46 days after close
    2. FD of 7 lac for 46 days after close
    3. FD of 7 lac for 0 days after close
    4 FD of 6lac for 46 days after close
    5 FD of 6 lac for 46 days after close
    6. FD of 6 lac for 46 days

    Ais system showing it 3900000 39 lac
    They are expecting response one of this
    Information is correct
    Information is not fully correct
    Information is duplicate
    Information related to other pan
    Information denied
    Please suggest which one has to select

    Thanks

  45. SFT-006
    Payment for
    Credit Card

    AXIS BANK LTD, TRISHUL 3RD FLOOR OPPOSITE SAMARTHESHWAR
    TEMPLE NEAR LAW GARDEN ELISBRIDGE, AHEMDABAD, GUJARAT,
    INDIA, 380006
    5XXXXXX.00

    Most of which is the refund for the transaction, will I need to contact the bank and confirm? Need to consider this while filling the tax?

    • Payment for credit cards need not be considered as such while filing ITR. If the transactions done from credit cards are genuine and you are showing income more than you spend through the credit card you need not worry. If there is an inquiry you can explain the source of income for the payment of credit card dues.

  46. Namaste sir
    In insight portal value of fixed deposit is shown in minus( – ). What it means. I have repeatedly done fresh FDs from my bank account .
    Like 200,000 after that it gets matured and gets credited into my account, again make fresh FDs by investing more amount like 15000 , after that it gets credited into my account, again make fresh FDs.I have done FDs 27 times , maximum value of fixed deposit is 4,12,000.
    In my 26AS it shown SFT 005 and amount is showing zero( 0) in 26 AS but in insight portal it shows amount in minus( -). Pls let me know it this (-) sign indicates.In insight portal it shows an amount of (-1640.44 lakh) with minus sign. In 26 AS it shown zero(0) amount. Pls clarify I am unable to understand . My e-mail is gauravgupta140595@gmail.com

  47. Namaste sir
    In insight portal value of fixed deposit is shown in minus( – ). What it means. I have repeatedly done fresh FDs from my bank account .
    Like 200,000 after that it gets matured and gets credited into my account, again make fresh FDs by investing more amount like 15000 , after that it gets credited into my account, again make fresh FDs.I have done FDs 27 times , maximum value of fixed deposit is 4,12,000.
    In my 26AS it shown SFT 005 and amount is showing zero( 0) in 26 AS but in insight portal it shows amount in minus( -). Pls let me know it this (-) sign indicates.In insight portal it shows an amount of (-1640.44 lakh) with minus sign. In 26 AS it shown zero(0) amount.

  48. In Part-E of my 26AS it shows SFT-005 Time deposit India Post (FS Division Dte), OLD NO 826 NEW NO 80 O/o PMG CCR ANNA ROAO
    ANNA ROAD, CHENNAI, TAMILNADU, INDIA, 600002, Rs.330000 ‘O’. what is it means? what i have to do?

    • “O” in the remarks column means ‘Original Statement uploaded by SFT Filer’
      If the time deposit belongs to you and you have correctly shown interest while filing your income tax return. You need not worry about it.

  49. My 26 AS in Column E showing 15 lac in sft004 (O) by sbi , My gross income 12 lac and , I took loan of 15 lac (5lakh from bank and 10 lakh from relative without interest)and deposited in cash in sbi by multiple times. I have paid taxes on income, but do I also have to pay tax on 15lac??

    • SFT 004 is for cash deposits. You have deposited Rs 15 lakhs in the bank hence it is showing in SFT 004 in 26AS. You may be asked to explain the source of cash.

      Do note that there are penal provisions on availing loans in cash.

  50. SFT 005 has been reflected in my 26AS .
    My LIC policy has been matured and I got 1500000 from LIC and deposited 1000000as fixed deposit
    Can I file ITR in normal way?
    Do I reflect it n my ITR

    • Yes, you can file your ITR normally. If one is showing all the taxable income correctly and paying tax on the same then there is nothing to worry about its reflection as a significant transaction in 26AS.

  51. Form 26AS Assessment year 2022-23
    PART B – Details of Tax Collected at Source
    On 30-12-2021, Under section 206CP and 206CQ, State Bank of India TAN No. MUMS99303B debited amount 110858.86+ 190432.32 (total Rs, 301291.10) and TCS collected by them was Rs. 554.29+ 9521.62 (total Rs. 10075.91) respectively.
    Part E
    SFT-011
    Purchase of Foreign Currency
    State Bank of India Mumbai amount Rs 1001291.00
    This amount was used as fees for higher study in abroad. Pl tell whether TCS above worth Rs 10075.91 is refundable when i fill my ITR? if yes, what should i do??? Pl guide

  52. Hi,
    I have savings from the past years (ITR filed) in my bank and if I invest more than 10 lakh in mutual funds this year, even if its more than this year’s income ( basically amount is from the savings accumulated), will it be a problem since the ITR next AY will have only lesser amount than the amount purchased? Though the previous years history records would properly show the details.

    • There will be no problem as long as the source of investment is genuine and explainable. Even if a query is raised you can provide the proof of income earned in previous years and that the investment is made from accumulated savings.

  53. Is SFT reporting mandatory in case of shares issued by the company for the first time..like initial allotment of shares for the purpose of incorporation of the company? The Company was incorporated in the month of Jan 2021 and shares were issued in the month of Feb 2021. So the company did not file SFT for reporting the transactions during FY 2020-21. So is it okay? Can we report such transactions during FY 2021-22? (Company is okay with delayed filing of SFT for FY 2021-22)

    • Yes SFT reporting is required for initial allotment too.

      Receipt from any person of an amount aggregating to Rs. 10 lakh or more in a financial year for acquiring shares (including share application money) issued by the company. It is advisable to file a delayed Form 61A.

  54. Will balance carry forwarded from the previous FY and converted into FD in current financial year contribute to SFT-005

  55. Hi I have two bank accounts, in one I get my salary which is 12lac per year and I had savings from my salary which I have deposited in my other ac by cash through out the year and ended up depositing 14 lakh. The purpose of the deposit to make more money from share dream 11 and crypto s ,but sadly all have lost. Not a single penny recovered.
    Now got SFT004 in 26 as, filed the return with only salary income, didn’t mention the cash deposit.
    What will happen.

    Thank you

    • If ITR was filed in earlier years and you can show that the cash deposits are made from savings that were withdrawn earlier from the bank account to the tune of 14 lakhs. Then when asked you can explain but not otherwise.

  56. I sold one plot in August 2021 but As26 shows the same transaction twice.Is there a possibility of the Assessing officer treating it as two separate transactions?

    • You can report in AIS that it is a duplicate entry. And one need not worry as long as they are genuine and there is no tax evasion. If a notice is issued the same can be explained with valid proofs available on record.

  57. here is an entry provided below in Form 26AS:
    1 SFT-005 Time Deposit
    STATE BANK OF INDIA, STATE BANK BHAVAN 3RD FLOOR FRT
    DEPARTMENT MADAME CAMAE ROAD NARIMAN POINT, MUMBAI,
    MAHARASHTRA, INDIA, 400021
    Rs 1083138.00
    What does this mean? and what is the tax liability?
    Please advise

    • The SFT-005 pertains to Time deposits maintained by you which has been reported by the bank as it crosses the threshold limit of Rs. 10 lacs.

      Make sure you show interest from the above time deposits while filing your ITR.

  58. I have received my dues from my company exceeding 15 lakhs which was directly credited to my account. I have deposited the same in fd in a bank. I have got SFT 005. Do I have to give an explanation and file returns. If so then which form. These were my gratuity and end of service dues

    • There is no specific place where you need to provide an explanation. If the receipt of gratuity and other dues is taxable please show the same in your ITR.

      Just in case a notice is issued you can explain the source of receipt tax paid on same and investment is made out of it.

  59. My bank has notified IT of SFT-005 on my moms account. I converted some of the money in her SB to FD including the maturity proceeds of the recurring deposits and interest. The formula for SFT-0005 in Form 26AS is Aggregate gross amount received form the person – Aggregate gross amount paid to the person. The bank is not considering maturity proceeds of the FD as being paid to the person and is limiting to the new FDs opened by the person. Is this calculation correct.

    • Bank has calculated it correctly. One need not worry about an entry in 26AS as long as they are not evading tax and all the income which is chargeable to tax is taken into consideration while filing ITR.

  60. I purchased a property above 50 lakhs & deposited TDS @ 1%. Now the purchase is showing under two heads in AIS – one under SFT from Registrar & other under TDS/TCS. What should be done?

    • It should reflect at both the places hence there is no issue in that. You need not worry about the same as long as you file your ITR with all the correct details.

  61. I have sold a residential property in the month of April 2021 but same is not reflecting in SFT of my form 26AS or in AIS. To avoid capital gain tax I have booked A residential flat in a gated community under construction and I received allotment notice for the same. What to do?

  62. Hi I have an SFT 012 reported for sale of property, however my name is included in the agreement just as a beneficial interest/joint owner, the entire proceeds was received by my husband in joint account. Also he was the one who paid full amount while purchasing. Hence I do not have capital gains, how will I file my IT Return? The entire amount will be taken in my husband’s ITR.

  63. In Form 26AS, SFT-012, purchase of property, remarks O
    can it show in ITR-1, please guide me

  64. here is an entry provided below in Form 26AS Part E and also in AIS form:
    1 SFT-005 Time Deposit
    STATE BANK OF INDIA, STATE BANK BHAVAN 3RD FLOOR FRT
    DEPARTMENT MADAME CAMAE ROAD NARIMAN POINT, MUMBAI,
    MAHARASHTRA, INDIA, 400021
    Rs 617200.00 (stating difference in : Gross amount received from the person = 12364000 and Gross amount paid to the person = Rs 11746800). I could not understand the transaction of such a huge amount. Being a retired person, I have some FDs totaling 20 lac. most of them are renewed after 46 days.
    What does this mean? and what is the tax liability?
    Please advise

    • If you are showing your interest correctly in your ITR need not worry.

      The gross interest for you would be coming to Rs 617200 from the FD and its renewal. So it may be reflecting the gross amount paid and received from the person(SBI).

  65. Hi I got Sft004 in 26as, now my it return process is completed without mentioning sft004 transactions. I got the refund also. Now the process is completed, do I need to worry about getting notification from IT department about the sft004 transactions??
    Thank you.

    • SFT 004 relates to cash deposits of Rs 10 lakhs or more in a Financial Year. If the effect of cash deposits is given in your ITR and you have not concealed any income or evaded tax you need not worry.

  66. In my Form 26 AS, SFT 012 transaction, the sale of immovable property is recorded but I have not done the sale or purchase of the same. I was only a witness to the sale of the property but it is recorded in my Form 26 AS.
    Do i need to do any thing while filing my IT Returns, please suggest.

  67. I am using my credit cards pretty frequently to make deposits into NPS tier-2 and withdrawing it every now and then. Due to this Credit card payments/deductions are being displayed under SFT tab in my for26AS. Does it any how making any negative impact on my PAN. Or am I supposed to take any action in lieu of these SFT’s. kindly suggest.

    • Please verify whether all the transactions being displayed in SFT are correct or not. If there is a mistake in reporting by the bank you may take an action.

      There is no positive or negative impact on PAN due to the frequent use of credit cards or its reporting in 26AS.

  68. SFT-004 is stated in my 26AS.amount is 0.I withdrawn(nearly 8 lakhs) all of my deposits for constructing a new house in the name of my wife. Please advise whether i have to indicate that while filing returns?

  69. I gad 3 FDs in March 2019 which is matured in July 2021. On maturity, I have renewed the same further. In AIS under SFT016 the accrued interest is appearing and TDS amount for that FY is also appearing. In 26AS, only TDS amount for FY is appearing. So there is a mismatch between 26AS and AIS. Please note that I am clearly showing the interest earned on FDs based on 26AS/interest statement of the Bank.

    Also note that when I start filing return for FY 20-21, I noticed that SFT016 amount also included in total amount from other sources which I feel wrong. Shall I reduce SFT016 interest amount in ITR as I am already showing interest income (during earlier years also I showed).

    Please advise.

  70. I my form 26AS following entries are found

    1. SFT-005 Time deposit by SBI of amount of (-707329.00)

    2. SFT-005 Time deposit by Post Office of amount of 2677517

    Both SFT are marked with ‘o’ in Remarks column.

    Do I need to report these values in ITR 1? or what else to be done from my end?

    • In ITR you are only required to show interest income from these time deposits. And if you are claiming deduction u/s 80C for post office time deposit then show that. Information in AIS is for information purposes so that one does not miss out on declaring any income in the return of income.

  71. i HAVE PURCHASED A PROPERTY, BUT IN AIS it is showing Sale of immovable property (SFT-012) , What should i do?

    • Submit feedback to AIS that information is incorrect. And file your return, you can always prove that the transaction was reported incorrectly you are the buyer of property and not the seller.

      • While submitting the feedback that information is incorrect,it is asked to fill the correct information , where i am not getting purchase as option

          • hai i have used my three credit cards for rotation purposes for to get rewards and waiver of fees of cards ..Now the total amount use in sft 006 its showing 66lakhs.
            so please suggest what to do..

          • You can explain the same in case a notice is issued. You would certainly be able to explain the trail of payments. Just file your ITR with full details of income and pay tax on same.

  72. I had invested in KVP – postal deposit of 18lakhs. it is only shown in SFT ,and not shown in 26AS . should I show it in ITR filling

  73. My wife and myself are joint account holders with SBI bank. There were some FDs made with the bank and in both our form 26AS, SFT-005 for the same amount is reflected, Interest on these amounts are shown in my ITR. My wife income is much lower and than the amount of FDs made by myself in joint name. My question is that while filing ITR of my wife, shall I report these entries as duplicated for my spouse in AIS or shall I go ahead and file the ITR as is. Can this raise a query from IT dept later? So your valuable advice is very much appreciated.

    • Bank will always show interest and its TDS is the account of the primary holder. And you should also show the same in your ITR. No you need not report the same in your wife’s return.

      Hope that helps.

  74. Regarding interest on FD’s it is understood. Thanks.
    The other question remains that what shall I do with the SFT-005 entries in my wife’s AIS, TIS and 26AS being reflected (she being joint account holder).

  75. My 26AS shows SFT009 with Amount as 5700.00 & remark ‘O’. Why is this being shown in my 26AS, since as per my understand SFT009 says- buy back of shares amounting to greater than 10 Lacs. Here the share buy back (from me) was of only Rs.5700 (where I made a profit of Rs.930.00). Is this some kind of error that I need to reach out to someone for? Also, if this is correct, do I need to show this in ITR? Your advice will be really helpful.

      • Sft05 shows a term deposit of 10 lk in 26AS.
        This FD was done in a new bank by closing a previous FD in another bank. ( Interest of this FD has been filed in ITR historically).

        Do I need to mention this 10 lk under exempt income when filing ITR, because my actual income has been less than 10 lk for the current AY and the same is being filed in ITR.

        Do we ignore this SFT05 by not mentioning in ITR, or is it allowed to mention under exempt income?

        • In ITR you have to show income. FD can be done from the current year’s income or/and from past savings as well. So it is ok as long as you know and can explain the source for the creation of FD.

          Hope that helps.

  76. My father sold an agricultural land. AIS is showing it as non-agricultural. The amount reported in AIS and SFT-012 of 26AS is the Government valuation, although it was sold for a lower cost than the Government value. Do I need to do anything with these while filing ITR?

  77. I have an entry under sft005 in my 26AS for the current AY. I had an fd which matured and got credited to my sb account along with interest. After few days I opened another fd (20lacs) using my matured fd (16 lacs)and some savings. Now what should I do. How do I explain the source for fd hen filing itr.

    • You don’t have to explain the source of FD while filing ITR. Just in case notice is issued you should be in a position to explain how that FD was created.

      Just report interest correctly and pay tax on same.

  78. If one has 20 lakh and he unfixed FD take 1 lakh and make another FD of 19 lakh and after some weeks withdraw 2 lakh and makes FD of 17 lakh and then after do the same for several times, his transction must cross 1 crore . How is it possible???? Why he will be accountable for this??? His principal is 20 lakh , if TAX IS calculated it will be on interest not on principal. How does he manage it ? HOW DOES ONE RESPONSE SFT005? Please answer.

    • What you have explained here do the same there. If it is showing FD of more than 1 crore you can tick on information is partly incorrect.

      Yes tax shall be levied only on interest and principal will not be considered for tax calculation.

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