As per section 285BA, specified reporting persons are required to file statement of Financial Transaction. Rule 114E of the income tax act specifies that the statement of financial transaction required to be filed as per section 285BA should be filed in Form No. 61A. The specified schema for the Form 61A can be downloaded from the e-filing official website under the head “Schema and validation rules”.
Types of Transaction
The reporting persons is required to file Form 61A for every type of transaction. The transaction types under SFT are divided as following:
- SFT- 001: Purchase of bank drafts or pay orders in cash
- SFT- 002: Purchase of pre-paid instruments in cash
- SFT- 003: Cash deposits in current account
- SFT- 004: Cash deposits in account other current account
- SFT- 005: Time Deposit
- SFT- 006: Payment for credit card
- SFT- 007: Purchase of Debentures
- SFT- 008: Purchase of shares
- SFT- 009: Buy back of shares
- SFT- 010: Purchase of mutual fund units
- SFT- 011: Purchase of Foreign Currency
- SFT- 012: Purchase or sale of immovable property
- SFT- 013: Cash payments for goods and services
- SFT- 014: Cash deposits during specified period (1st April, 2016 to 8th November, 2016 and 9th November, 2016 to 30th December, 2016).
What is SFT generation Utility?
Report generation utility is a desktop utility based on JAVA. This enable the user to generate a validated Form 61A XML reports which is to be furnished to income tax department.
It has following features:
- Generation of SFT in XML format
- Enable saving and import draft XML file
- Assist in correction of errors
- Validation of data
- Preparation of SFT by importing CSV and data entry
The report generation utility can be downloaded from the e-filing website of the income tax department under forms (Other than ITR). The steps to be followed are:
Step 1: Visit to e-filing portal at https://incometaxindiaefiling.gov.in/
Step 2: Click on the Forms (Other than ITR) under the downloads section
Step 3: Click on download link against Form 61A to download the utility. The utility will be saved on the location intended by the user.
The prerequisites for using the utility are:
- Operating System: Windows 7.1 or above
- Java Runtime Environment (JRE) version 1.8 or later: It allows the user to run Java supported programs
- An unzip software: It allows the user to extract the compressed files. Software like WinZip or WinRAR can be used.
Note: The utility can only be used be on user’s machine, JRE 1.8 or later is installed by extracting the downloaded files using WinRAR or WinZip.
How to run the Utility?
After the JRE is installed and files are extracted, the report generation utility can be run by following steps:
- Go to the folder where the contents of the utility have been extracted.
- Click on ITD_EFILING_FORM61A_PR2.jar file. It will display the General Instructions window.
Note: The system console window should remain open throughout the operation of the utility. In case the window is even accidently closed the data will be lost.
Parts of Form 61A
Form 61A has four parts. Part A contains the statement details of all transaction types. The other three types are related to report level information which are as follows:
- Part B: Person Based Reporting
- Part C: Account Based Reporting
- Part D: Immovable Property Transaction Reporting
Reporting person is required to furnish separate Form 61A for each transaction type.
Preparation of SFT
#1- Selecting the transaction type
- Open the Form 61A utility. Select the SFT code from the drop-down list.
- Utility will ask for the permission, click on OK button.
#2- Fill Statement Details
User needs to click on “Statement (Part A)” and fill the statement details. User needs to fill all the necessary/ mandatory fields. These details can be imported through CSV files or manual data entry.
User can import Coma Separated Values (CSV) to capture report details.
- Click on Export CSV button to download CSV template.
- Save the CSV at desired location
- Open the CSV file and fill the details by data entry
- Click on Import CSV button
- Select the Pre-saved CSV from file system and then click on Open button to upload.
- CSV imported successfully. Click on Ok button on dialog box appeared to complete the import.
#4- Capturing Report details by Data Entry
- Click on Add Row to add a new information record
- Click on Delete Row to delete any information record
- Click on Edit Row to edit the selected the information record.
- In case of SFT- 014, without filling the amount credited to account before demonization and amount credited to account after demonetization, utility will show following errors:
- As per SFT- 014, provide aggregate amount credited to account before demonetization
- As per SFT -014, Provide aggregate amount credited to account after demonetization.
- Fill the details and click on save button to save the details.
Validation of SFT
The utility also allows users to validate the information and identify errors before the final submission. The errors have been classified in the 3 categories:
Mandatory Errors: Mandatory Schema level errors need to be resolved by the users for successful generation of XML reports.
Defects: Defects can be statement level defects or Report level defects. Statements Defects are those defects which reflects defects in “Statement (Part A)”. These statements are rejected and the reporting person needs to resubmit the statement. Whereas report defects are those defects which reflects defects in specified reports i.e. Part B/C/D. A statement has multiple reports but only the reports with defects are rejected. The reporting entity needs to correct these defects and submit the statement again.
Exceptions: Exceptions do not result in rejection of statement. It should be reviewed by the reporting person and if any information is available, the person may provide the information. In case of any defect, the reporting person has to rectify the defect and submit the statement again.
#1- Validating Data
- Click on Validate button
- Utility will display validation errors on validation tab
- Click on Validation Row to see details of Validation errors on the right window pane of screen
- Click on any of the validation error from the list. The utility will show the fields red where the correction can be made.
- Fix the errors and click on validate button to check whether the errors have been fixed or not.
- In case there is no error then “Successful validation” dialog box will appear.
Generation of SFT
- Click on Generate XML button.
- In case there are no errors the utility will display Form Validation Successful dialog box. Click on OK.
- Enter the desired path where the user wants to save XML and click save button.
Note: The XML generated can be uploaded on the e*filing portal of the income tax.
#1- Exporting data in CSV file
The user can export the SFT in CSV file by following the steps given below:
- Click on Export CSV button to export the SFT data in CSV
- Same the CSV on the desired location
#2- Saving Draft XML File
The user can save filled information as draft which could be later edited also.
- Click on Save button toolbar
- Enter the destination on the file window
- Click on save button.
#3- Opening Saved XML File
The user can open the saved XML file in the utility.
- Click on Open button in toolbar
- Select the desired file and click on Open button
- The information saved on the XML file will be loaded.
#4- Prepare NIL Statement
The user can also generate SFT with no financial transaction in it. This is useful to the reporting person when there is no financial transaction to report.
- Fill the required information in Statement (Part A) and select ND (No data) from statement type drop down list
- Save XML file to desired location.
#5- Preparation of Corrective Statement
The corrective statements can also be prepared in the utility for a previously submitted statement by following the given steps:
- Open the existing XML which needs to be corrected
- Select the CB-Correction Statement containing correction for previously submitted information selection from Statement Type dropdown list.
- Mention the statement ID of the original statement which is being corrected in the component “Original Statement ID”.
- Mention the report serial number of the original report which is being corrected in the component “Original Report Serial Number”.
About the Author
Arpit Goyal is pursuing CA and B.com & also working as an article assistant in Gurgaon. He has an immense interest in Taxation. He loves to use technology to spread knowledge about taxation & accounts.