How to Read Form No. 26AS, Section Code & SFT Code

3rd September 2021

How to Read Form No. 26AS, Section Code & SFT Code

SFT (Specified Financial Transaction):

SFT refers to the Specified Financial Transaction. It is designed pursuant to rule 114E of the Income Tax act wherein certain specified transactions have been enumerated which is required to be reported by specified entities/ authorities to the Income Tax Department.

Form NO. 26AS mentioned the section quote of the specified transactions carried out by the taxpayers. Let us know about he SFT Code and its details.

SFT number	Particulars	Amount (in aggregation of)	Person liable to report
SFT- 001:	Purchase of bank drafts or pay orders in cash	Rs. 10 lakh	Banking company, co-operative bank
SFT- 002:	Purchase of pre-paid instruments in cash	Rs. 10 lakh	Banking company, co-operative bank
SFT- 003:	Cash deposit in current account	Rs. 50 lakh	Banking company, co-operative bank
SFT- 004:	Cash deposit in account other than current account	Rs. 10 lakh	Banking company, co-operative bank or post master office
SFT- 005:	Time deposit	Rs. 10 lakh	Banking company, co-operative bank or post master office or Nidhi or NBFC
SFT- 006:	Payment for credit card	Rs. 1 lakh in cash or Rs. 10 lakh in any other mode	Banking company, co-operative bank or post master office
SFT- 007:	Purchase of bonds or debentures	Rs. 10 lakh	Company or institution issuing debentures or bonds
SFT- 008:	Purchase of shares	Rs. 10 lakh	Company issuing shares
SFT- 009:	Buy back of shares	Rs. 10 lakh	Company listed in recognized stock exchange
SFT- 010:	Purchase of mutual fund units	Rs. 10 lakh	· A trustee of mutual fund or any authorized person
SFT- 011:	Purchase of foreign currency	Rs. 10 lakh	Authorised person under FEMA act
SFT- 012:	Purchase or sale of immovable property	Rs. 30 lakh (individual transaction)	Inspector general or registrar or sub registrar
SFT- 013:	Cash payment for goods and services	Rs. 2 lakh (individual transaction)	Any person liable to audit u/s 44AB
SFT- 014:	Cash deposits during specified period (9th Nov to 30th Dec, 2016)	Rs. 2.5 lakh	Banking company, co-operative bank or post master office

Above chart makes it crystal clear that the SFT return has to be filed by the person with whom transactions has been doen and not the person who has done transaction. While filing income tax returns, taxpayers must just check whether the transaction as reflected In 26AS

Is correct
It belong to him
And the same is very well explainable to the tax authrotieis if the information is called for.

Nothing more is required to be done by the taxpayers for SFT transactions reflected in 26AS of the assessee,

Here is a compilation of what the section Code denoted in Form No. 26AS for Various TCS Payment:

Section Code	Nature of Payment
206CA	Collection at source from alcoholic liquor for human
206CB	Collection at source from timber obtained under forest lease
206CC	Collection at source from timber obtained by any mode other than a forest lease

206CD	Collection at source from any other forest produce (not being tendu leaves)

206CE	Collection at source from any scrap

206CF	Collection at source from contractors or licensee or lease relating to parking lots

206CG	Collection at source from contractors or licensee or lease relating to toll plaza

206CH	Collection at source from contractors or licensee or lease relating to mine or quarry

206CI	Collection at source from tendu Leaves
206CJ	Collection at source from on sale of certain Minerals
206CK	Collection at source on cash case of Bullion and Jewellery
206CL	Collection at source on sale of Motor vehicle
206CM	Collection at source on sale in cash of any goods(other than bullion/jewelry)

206CN	Collection at source on providing of any services(other than Ch

TDS Section Code in Form No. 26AS

Section		Description
192		Salary
192A		TDS on PF withdrawal
193		Interest on Securities
194		Dividends
194A		Interest other than ‘Interest on securities’
194B		Winning from lottery or crossword puzzle
194BB		Winning from horse race
194C		Payments to contractors and sub-contractors
194D		Insurance commission
194DA		Payment in respect of life insurance policy

194E		Payments to non-resident sportsmen or sports associations

194EE		Payments in respect of deposits under National Savings Scheme

194F		Payments on account of repurchase of units by Mutual Fund or Unit Trust of India

194G		Commission, price, etc. on sale of lottery tickets

194H		Commission or brokerage
194I		Rent
194IA		TDS on Sale of immovable property
194J		Fees for professional or technical services
194K		Income payable to a resident assessee in respect of units of a specified mutual fund or of the units of the Unit Trust of India

194LA		Payment of compensation on acquisition of certain immovable

194LB		Income by way of Interest from Infrastructure Debt fund

194LC		Income by way of interest from specified company payable to a non-resident
194LBA		Certain income from units of a business trust
194LBB		Income in respect of units of investment fund
194LBC		Income in respect of investment in securitization trust
194LD	TDS on interest on bonds / government securities
195	Other sums payable to a non-resident
196A	Income in respect of units of non-residents
196B	Payments in respect of units to an offshore fund
196C	Income from foreign currency bonds or shares of Indian
196D	Income of foreign institutional investors from securities

Know about Code used in Form No. 26AS

Form No. 26AS merely mentions the code and doesn’t mention directly as to what is actually denote. Here is a compilation of what the Code (001, 002, 003, etc) denoted in Form NO. 26AS:

Code & Type of Transaction as shown in 26AS: A detailed Descriptions

Code	Description
001	Cash deposits aggregating to ten lakh rupees or more in a year in any savings account of a person maintained in a banking company to which the Banking
002	Payment made by any person against bills raised in respect of a credit card aggregating to two lakh rupees or more in a year.
003	Receipt from any person of an amount of two lakh rupees or more for purchase of units of a Mutual Fund.
004	Receipt from any person of an amount of five lakh rupees or more for acquiring bonds or debentures issued by a company or institution.
005	Receipt from any person of an amount of one lakh rupees or more for acquiring shares issued by a company.
006	Purchase by any person of immovable property valued at thirty lakh rupees or more
007	Sale by any person of immovable property valued at thirty lakh rupees or more.
008	Receipt from any person of an amount of five lakh rupees or more in a year for investment in bonds issued by Reserve Bank of India.

3rd September 2021

How to Read Form No. 26AS, Section Code & SFT Code

How to Read Form No. 26AS, Section Code & SFT Code

SFT (Specified Financial Transaction):

SFT refers to the Specified Financial Transaction. It is designed pursuant to rule 114E of the Income Tax act wherein certain specified transactions have been enumerated which is required to be reported by specified entities/ authorities to the Income Tax Department.

Form NO. 26AS mentioned the section quote of the specified transactions carried out by the taxpayers. Let us know about he SFT Code and its details.

SFT number

Particulars

Amount (in aggregation of)

Person liable to report

SFT- 001:

Purchase of bank drafts or pay orders in cash

Rs. 10 lakh

Banking company, co-operative bank

SFT- 002:

Purchase of pre-paid instruments in cash

Rs. 10 lakh

Banking company, co-operative bank

SFT- 003:

Cash deposit in current account

Rs. 50 lakh

Banking company, co-operative bank

SFT- 004:

Cash deposit in account other than current account

Rs. 10 lakh

Banking company, co-operative bank or post master office

SFT- 005:

Time deposit

Rs. 10 lakh

Banking company, co-operative bank or post master office or Nidhi or NBFC

SFT- 006:

Payment for credit card

Rs. 1 lakh in cash or Rs. 10 lakh in any other mode

Banking company, co-operative bank or post master office

SFT- 007:

Purchase of bonds or debentures

Rs. 10 lakh

Company or institution issuing debentures or bonds

SFT- 008:

Purchase of shares

Rs. 10 lakh

Company issuing shares

SFT- 009:

Buy back of shares

Rs. 10 lakh

Company listed in recognized stock exchange

SFT- 010:

Purchase of mutual fund units

Rs. 10 lakh

· A trustee of mutual fund or any authorized person

SFT- 011:

Purchase of foreign currency

Rs. 10 lakh

Authorised person under FEMA act

SFT- 012:

Purchase or sale of immovable property

Rs. 30 lakh (individual transaction)

Inspector general or registrar or sub registrar

SFT- 013:

Cash payment for goods and services

Rs. 2 lakh (individual transaction)

Any person liable to audit u/s 44AB

SFT- 014:

Cash deposits during specified period (9th Nov to 30th Dec, 2016)

Rs. 2.5 lakh

Banking company, co-operative bank or post master office

Above chart makes it crystal clear that the SFT return has to be filed by the person with whom transactions has been doen and not the person who has done transaction. While filing income tax returns, taxpayers must just check whether the transaction as reflected In 26AS

Is correct

It belong to him

And the same is very well explainable to the tax authrotieis if the information is called for.

Nothing more is required to be done by the taxpayers for SFT transactions reflected in 26AS of the assessee,

Here is a compilation of what the section Code denoted in Form No. 26AS for Various TCS Payment:

Section Code

Nature of Payment

206CA

Collection at source from alcoholic liquor for human

206CB

Collection at source from timber obtained under forest lease

206CC

Collection at source from timber obtained by any mode other than a forest lease

206CD