New Information for Statement of Financial Transactions: Interest Income, Dividend Income and Capital Gain Income of Mutual Funds & Shares

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New Information for Statement of Financial Transactions:

Interest Income, Dividend Income and Capital Gain Income of Mutual Funds & Shares

 

 

The CBDT, vide Income-tax (4th Amendment) Rules, 2021, has enhanced the scope of nature of transactions to be reported under Statement of Financial Transaction (SFT) as per Rule 114E.

Now, following ‘Specified Financial Transactions’ are also required to be reported for the purpose of pre-filling the return of income:

Sl. No. Nature and value of transaction Reporting person
1
  • Capital gains on transfer of listed securities or units of Mutual Funds
  •  Recognised Stock Exchange;
  •  Depository as defined in section 2(1)(e) of Depositories Act, 1996;
  •  Recognised Clearing Corporation;
  •   Registrar to an issue and share transfer agent registered under section 12(1) of the SEBI Act, 1992.
2 Dividend income A Company
3 Interest income 
  • A Banking company or a Co-op. 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);
  •  Post Master General as referred to in section 2(j) of the Indian Post Office Act, 1898;
  •  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.

The Statement in respect to above transactions shall be furnished in the manner specified by the Principal Director General of Income Tax (Systems) or the Director General of Income Tax (Systems), as the case may be, with the approval of the CBDT.

The Statement shall be furnished at such frequency as may be specified by the Principal Director General of Income Tax (Systems) or the Director General of Income Tax (Systems), as the case may be, with the approval of the CBDT.

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