Income tax department gives big relief, last date for filing SFT return extended
INVC NEWS
New Delhi – : The Income Tax Department has provided a significant relief to banks, foreign exchange dealers, and other reporting entities by extending the last date for filing Statement of Financial Transaction (SFT) returns for the fiscal year 2022-23. Originally, the deadline for filing SFT returns was set for May 31; however, due to heavy traffic on the reporting portal, the Income Tax Department has extended the deadline for a few more days.
The announcement of the deadline extension was made by the Income Tax Department through a tweet, which aimed to address the difficulties faced by filers in submitting their SFT returns. The department acknowledged the challenges posed by the high volume of traffic on the reporting portal and decided to keep the portal open for an additional period. This extension ensures that reporting entities can easily file their SFT returns without any inconvenience.
SFT refers to Specified Financial Transactions that certain institutions are obligated to report to the Income Tax Department. These transactions include high-value financial activities or any records maintained by the reporting entities throughout the year. By monitoring SFT returns, the Income Tax Department can effectively track significant financial transactions conducted by individuals and organizations.
Filing SFT returns within the stipulated deadline is crucial for reporting entities. Failure to comply with the deadline can result in penalties of up to Rs 1,000 per day for delayed filing. Penalties can also be imposed for non-filing or providing incorrect information in the SFT returns. Therefore, it is imperative for reporting entities to meet the extended deadline and ensure the accuracy of the information provided in their returns.
The extension of the last date for filing SFT returns highlights the importance of this reporting requirement. The Income Tax Department relies on SFT returns to monitor and analyze high-value transactions, contributing to its efforts in combating tax evasion and ensuring financial transparency. Reporting entities, such as foreign exchange dealers, banks, sub-registrars, NBFCs, post offices, issuers of bonds/debentures, mutual fund trustees, and companies involved in dividend payments or share buybacks, play a crucial role in providing accurate information through SFT returns.
In conclusion, the Income Tax Department’s decision to extend the last date for filing SFT returns brings significant relief to reporting entities burdened by the heavy traffic on the reporting portal. Timely and accurate filing of SFT returns remains vital for these entities to avoid penalties and comply with regulatory requirements. By fulfilling their obligations, reporting entities contribute to a transparent financial system that facilitates effective tax administration and combats illicit financial activities.
FAQs
1. What is the purpose of filing SFT returns? SFT returns serve the purpose of tracking high-value financial transactions conducted by individuals and organizations. They help the Income Tax Department monitor and analyze such transactions to ensure compliance with tax regulations and prevent tax evasion.
2. Which entities are required to file SFT returns? Reporting entities such as banks, foreign exchange dealers, sub-registrars, NBFCs, post offices, issuers of bonds/debentures, mutual fund trustees, and companies involved in dividend payments or share buybacks are required to file SFT returns.
3. What are the consequences of delayed filing of SFT returns? Delayed filing of SFT returns can attract penalties of up to Rs 1,000 per day. Additionally, penalties can be imposed for non-filing or providing incorrect information in the returns.
4. How does the deadline extension benefit reporting entities? The deadline extension provides reporting entities with additional time to file their SFT returns, alleviating the difficulties caused by heavy traffic on the reporting portal. It ensures a smoother and more convenient filing process.
5. Why is it important for reporting entities to file accurate SFT returns? Accurate filing of SFT returns is crucial as it helps maintain financial transparency and facilitates effective tax administration. By providing accurate information, reporting entities contribute to the government’s efforts in combating tax evasion and ensuring a fair and compliant financial system.
