Nagpur: The Central Board of Direct Taxes has instructed that specified persons are required to furnish Statement of Financial Transaction (SFT) Returns to be filed before 31st of May, 2017 in respect of transaction wherein cash exceeding Rs.2 Lacs is received in a single event during the financial year 2016-17 along with specifying various other persons for reporting the Specified Transactions.
In this regard delegation from Institute of Chartered Accountants of India, Nagpur Branch led by CA. Sandeep Jotwani met Director of Investigation Suresh Battini and discussed the various practical difficulties being faced by the members and the Assessee. All Assessee covered U/s 44 AB of the Income Tax Act. 1961 are required to file this SFT Return. Under this section Traders and Professionals are being covered for the first time and majority of them are not having proper knowledge of several compliances and the type of transactions to be reported. Also, as the due date of filing Tax Audit Report is 30th September, it is difficult to identify reportable transactions without complete books of accounts.
Vice Chairman CA. Umang Agrawal pointed the various difficulties being faced by the Registrar and Sub-Registrar office that are also required to file this return in lieu of AIR Returns. In this new return form 61A various additional details are required to be reported which were not required earlier in AIR Returns. Some additional time should be granted to them to get the details.
Secretary CA. Suren Duragkar informed that the Co-operative Banks are also required to adhere to the new guidelines. Since, many of these banks are not having proper mechanism to get the centralized data required to file the return. Hence getting the details manually from numerous branches will be a time consuming process.
Other Practical difficulties being faced by other Assessee were discussed by the authorities and requested to represent the issues to the Central Board of Direct Taxes along with a request to provide clarifications on various issues. Director of Investigation responding to the interaction has accepted the memorandum being submitted by the Nagpur Branch and has assured to forward the difficulties being faced to the Board who is the supreme authority to take decision in this matter. He also assured to organize seminars on these issues whenever required for providing the required information to the members of trade & industry as well as professionals.
The delegation appreciated the efforts of the department and thanked them for all their efforts for the benefit of public and helping in smooth compliance of various Income Tax related matters.