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

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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
  1. Is correct
  2. It belong to him
  3. 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.
 

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