The last date for filing Statement of Specified Financial Transactions (SFTs) for financial year 2026-27 is May 31, 2026. Though specified entities are responsible for reporting this information, taxpayers should still verify that all reported SFT transactions align with their declared income and tax returns.
Invalid or missing PAN details, duplicate entries, inaccurate reporting of transactions by banks, mutual funds, and other financial institutions in SFT filings can lead to discrepancies in a taxpayer’s income tax records and may later trigger notices or refund delays. Taxpayers can review these reported transactions through the Annual Information Statement (AIS) or Taxpayer Information Summary (TIS) available on the Income Tax India e-filing portal.
“Filing complete and accurate information helps reduce reporting errors and facilitates smoother compliance for taxpayers,” Income tax department said in a X (formerly Twitter) post on Tuesday, along with a video detailing the pointers that specified entities must follow while reporting the required information.
What is SFT?
SFT provides a reporting mechanism through which specified entities are required to provide information about material to the income-tax department through Form 61A under Section 285BA of the Income tax act, according to I-T department’s official website.
This statement is filed annually on or before 31st May immediately following the financial year in which the transaction is registered or recorded. However, the SFT in relation to transactions in listed securities and units of mutual funds is required to be filed on half-yearly basis.
The information reported through SFT filing is used by the tax department for cross-checking taxpayer disclosures during ITR processing. Thereby, any mismatch between a taxpayer’s ITR and the information available to the department may trigger scrutiny, notices, or delays in tax refunds.
What transactions are reported under SFT?
The following transactions are reported in SFT by the specified entities:
- High-value transactions
- Payment of dividend
- Payment of interest
- Transactions in listed securities and units of mutual funds.
Common SFT errors taxpayers should watch for
According to a news report by PTI, the income tax department’s analysis of SFT filings by banks and mutual funds has identified some recurring issues such as duplicate transaction reporting, incorrect transaction values, and missing or wrong details. Such errors can eventually reflect in a taxpayer’s Annual Information Statement (AIS) and other tax records.
The report also added that these mistakes are more likely in cases involving joint accounts or jointly held investments, where values may sometimes get reported in an incorrect manner. Lack of reconciliation before filing, weak internal checks, and delays in SFT submission are also among the common errors identified by income tax officials.
How can taxpayers flag such errors?
If you’ve noticed inaccuracies in your , you can submit your disagreement through the AIS portal on the I-T department’s website. When the taxpayer takes that route, they must also retain all supporting documents to substantiate your response. Here’s the step-by-step guide:
- Log in to the official income tax portal:
- Go to Pending Actions and then Compliance Portal
- Click “Proceed” and select the AIS tile
- Choose the financial year, then chick on View AIS. After that select the transaction
- Click ‘Optional’ under ‘Provide Feedback’ and submit your response.
- Keep the acknowledgement (Reference ID) for future reference.
Taxpayers should identify the type of mismatch, prepare a reconciliation, and then raise it through the AIS platform.