SFT FY 2023-24.

 As you may be aware, the provisions of the Indian tax laws, require companies to report certain Specified Financial Transactions (‘SFT’) undertaken during the financial year by filing a Form 61A. Rule 114E of the Indian tax rules have prescribed the list of transactions that companies are required to report. We have summarized the transactions that are required to be reported by companies for your reference:

  

Reporting person	Nature of transaction
A company issuing shares.	Receipt from any person of an amount aggregating to ten lakh rupees or more in a financial year for acquiring shares (including share application money) issued by the company.
A company issuing bonds or debentures	Receipt from any person of an amount aggregating to ten lakh rupees or more in a financial year for acquiring bonds or debentures issued by the company or institution.
A company which is required to undertake tax audit	Receipt of cash payment exceeding two lakh rupees from any person for sale of goods or services of any nature.
A company paying dividend	A Company paying dividend is required to furnish details of dividend distributed during the financial year.

 

Accordingly, where the Indian entity has undertaken any of the above transactions, it would be required to report such transactions by filing a Form 61A on or before 31 May 2024. Further, where there are no transactions to be reported during the year, the Indian entity could file a preliminary response stating that no transactions have been undertaken.

 

While we understand that this compliance may already be tracked, we thought of bringing this to your attention