Government of India Ministry of Finance Central Board of Direct Taxes Directorate of Income Tax (Systems)
Notification No. 4 of 2021
New Delhi, 30th April, 2021
Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund Transactions by Registrar and Share Transfer Agent
Section 285BA of the Income Tax Act, 1961 and Rule 114E requires specified reporting persons to furnish statement of financial transaction (SFT).
2. For the purposes of pre-filling the return of income, CBDT has issued Notification No. 16/2021 dated 12.03.2021 to include reporting of information relating to Capital gains on transfer of units of Mutual Funds. The new sub rule 5A of rule 114E specifies that the information shall be furnished in such form, at such frequency, and in such manner, as may be specified by the Director General of Income Tax (Systems), with the approval of the Board.
3. The guidelines for preparation and submission of Statement of Financial Transactions (SFT) information are enclosed in Annexure A and Annexure B respectively. The format of control statement to be submitted by the Designated Director is given in Annexure C. The data structure and validation rules are enclosed in Annexure D and Annexure E respectively. Notification No. 3 of 2018 dated 05.04.2018 may be referred for the procedure for registration.
4. All Registrar and Share Transfer Agents are required to prepare the data file in prescribed format from their internal system. Reporting entities are required to submit the data files using SFTP Server using the login credentials (To be communicated separately).
5. A separate control statement (refer annexure C) is required to be signed, verified and furnished by the Designated Director.
6. The statement of financial transactions relating to Financial Year 2020-21 shall be furnished on or before the 31st May 2021. Thereafter, the statement of financial transactions relating to the quarter ending 30th June, 31st September, 31st December and 31st March shall be furnished on or before 25th of July, October, January and April respectively.
7. The reporting entities are also required to provide information of mutual fund transactions, reported to Income Tax Department, to the account holder which will enable taxpayers to reconcile the information displayed in the Annual Information Statement (AIS) (Form 26AS).
1 Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund Transactions by Registrar and Share Transfer Agent
8. In case, the reporting person/entity comes to know or discovers any Inaccuracy in the information provided in the statement or the defects have been communicated to the reporting person/entity, it is required to remove the defects by submitting a correction/deletion statement. 9. The reporting person/entity is required to document and implement appropriate information security policies and procedures with clearly defined roles and responsibilities to ensure security of submitted information and related information/documents. The reporting person/entity is also required to document and implement appropriate archival and retrieval policies and procedures with clearly defined roles and responsibilities to ensure that submitted information and related information/documents are available promptly to the competent authorities. 10. This issues with the approval of CBDT. This Notification shall come into effect from the date of issue.
Copy to: 1. PPS to the Chairman and Members, CBDT, North Block, New Delhi. 2. All Pr. Chief Commissioners/ Pr. Director Generals of Income Tax and all Chief
Commissioners/ Director Generals of Income Tax — with a request to circulate amongst all officers in their regions/ charges. 3. JS (TPL)-I &2/ Media coordination and Official spokesperson of CBDT 4. DIT (IT)/ DIT (Audit)/ DIT (Vig.)/ ADG (System) 1, 2, 3, 4, / CIT (CPC) Bangalore, CIT (CPC- TDS) Ghaziabad. 5. ADG (PR, PP&OL) with a request for advertisement campaign for the Notification. 6. TPL and ITA Divisions of CBDT. 7. The Institute of Chartered Accountants of India, IP Estate, New Delhi. 8. Web Manager, "incometaxindia.gov.in" for hosting on the website. 9. Database cell for uploading on www.irsofficersoniine.zov.in and in DGIT (S) Comer. 10. ITBA publisher for uploading on ITBA portal.
ADG(Systems)-2, CBDT
2 Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund Transactions by Registrar and Share Transfer Agent
Annexure A
Guidelines for Preparation of Statement of Financial Transactions (SFT)
The guidelines for preparation of Statement of Financial Transactions (SFT) for Mutual Fund transactions are as under:
1. The Mutual Fund transaction summary file will be used for pre-filling the gain/income/loss from Mutual Fund transactions.
2. The Mutual Fund Transaction Summary is required to be prepared for user- initiated debit transactions during the reporting period. For debits through transfers, information need not be provided if transferor and transferee are same person.
3. In case of a minor, details of legal or natural guardian (PAN, Name etc.) may be provided.
4. Data with respect to exchange traded funds and exchange-based transactions, , may not be provided.
5. The Estimated Sale Consideration for the debit transaction should be determined on the best possible available price of the asset with the RTA. In case the sale consideration related to a sale/transfer is not available, Redemption Offer Price (Exit Load adjusted NAV) on the date of sale/transfer may be taken. The taxpayer will be able to modify the sales consideration before filing the return.
6. The securities should be classified into specified security class for determining the type of asset (short term/long term) and applicable rate.
7. The period of holding (difference between date of sale and date of acquisition of any security) should be used to classify the asset as short term or long-term asset. First in First out (FIFO) method should be used for identification of corresponding purchases and computation of period of holding. Any capital asset held by the taxpayer for a period of more than minimum period of holding will be treated as long-term capital asset and remaining assets will be classified as short-term asset. The specified minimum period of holding for different asset class is as under:
Security Security Class Description Minimum Period of Class Code Holding EMF Unit of Equity Oriented Mutual Fund 12 months UTI Unit of UTI 12 months OTU Other Units 36 months
8. For every debit transaction, the corresponding credit should be identified using First in First Out (FIFO) method. The estimated cost of acquisition for the credit should be determined on the best possible available price with the RTA. In case the cost of acquisition related to a credit/transfer is not available, NAV for the end of the day of the credit may be taken. The taxpayer will be able to modify the cost of acquisition before filing the return.
3 Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund Transactions by Registrar and Share Transfer Agent
9. In relation to a long-term capital asset, being a unit of an equity-oriented fund acquired before the 1st day of February, 2018, adjusted cost of acquisition shall be higher of (i) the cost of acquisition of such asset; and (ii) lower of (A) the fair market value of such asset as on 31st January, 2018; and (B) the full value of consideration received or accruing as a result of the transfer of the capital asset.
10. The Cost Inflation Index should be used to determine estimated indexed cost of acquisition wherever applicable.
11. The details of clients and summary values for the transactions for the reporting period should be reported in MF Account Summary (MF_ACC_SUMM.TXT)
12. The details of transactions effected through transmission and recorded by the RTA during the year along with off-market transactions recorded in the RTA system should be reported in Mutual Funds Off-Market Transactions (MF_OFF_TRN.TXT)
4 Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund Transactions by Registrar and Share Transfer Agent
Annexure B Guidelines for Submission of Statement of Financial Transactions (SFT)
1. Reporting entities are required to prepare the data file in prescribed format from their internal system. Reporting entities are required to submit the data files using SFTP Server using the login credentials (to be communicated separately). A separate control statement (refer Annexure C) is required to be signed, verified and furnished by the Designated Director.
2. Any file which does not meet the validation requirements will be rejected. 3. In case Reporting Entity needs to modify uploaded data, Correction Statement is
required to be filed. In the Correction Statement, only those records should be uploaded in which correction is required. In case Reporting Entity needs to delete uploaded data, Deletion request is required to be filed.
5 Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund Transactions by Registrar and Share Transfer Agent
Annexure C Control Statement for Mutual Fund Transactions (RTA)
Number of Records Values A.1 Reporting Entity Name A.2 ITDREIN A.3 Registration Number A.4 Statement Type A.5 Statement Number A.6 Original Statement Id A.7 Reason for Correction A.8 Statement Date A.9 Reporting Period Start Date A.10 Reporting Period End Date Number of Records B.1 Mutual Fund Batch File (MF_BATCH.TXT) B.2 Mutual Fund Account Summary (MF_ACC_SUMM.TXT) B.3 Mutual Fund Transaction Summary (MF_TRN_SUMM.TXT) B.4 Mutual Fund Off-Market Transaction (MF_OFF_TRN.TXT) Sum of Key Values in Rs. (Refer Mutual Fund Account Summary) C.1 Opening Value C.2 Purchase Value C.3 Sale Value C.4 Closing Value I, declare that to the best of my knowledge and belief, the information given in the data files is correct and complete and is in accordance with the provisions of the Income-tax Act, 1961.
Name Designation
6 Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund Transactions by Registrar and Share Transfer Agent
Annexure D
Data Structure
The information is required to be uploaded in data file. The data file should be in ASCII format with one report per line. All fields in each file should be delimited with the delimiter “|”. The first record in the file should contain header text.
D.1. Mutual Fund Batch File (MF_BATCH.TXT)
This file contains details of reporting entity, principal officer and files uploaded by the reporting entity
# Field Mandatory Format Remarks
1. Reporting Entity Y VARCHAR (150) Reporting Entity Name
Name
2. ITDREIN Y VARCHAR (20) Registration number
allotted by ITD
3. Registration N VARCHAR (150) SEBI Registration number
Number
4. Statement Type Y VARCHAR (2) NB - New Statement
containing new
information
DB - Deletion Statement
CB - Correction
Statement containing
corrections for previously
submitted information
5. Statement Number Y VARCHAR (20) Internal reference
number for reporting
entity
6. Original Statement Y DECIMAL (18,0) Statement ID of the
Id original Statement which
is being replaced deleted
or referred in the current
Statement. In case the
Statement is new and
unrelated to any previous
Statement, mention ‘0’
here.
7. Reason for Y VARCHAR (1) Reason for revision to be
Correction stated when the original
Statement is corrected.
(Refer Permissible
values)
7 Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund Transactions by Registrar and Share Transfer Agent
# Field Mandatory Format Remarks
8. Statement Date Y DATE Statement Date DD-MM-
YYYY
9. Reporting Period Y DATE First day of the reporting
Start Date period DD-MM-YYYY
10. Reporting Period Y DATE Last day of the reporting
End Date period DD-MM-YYYY
11. Principal Officer Y VARCHAR (150)
Name
12. Principal Officer Y VARCHAR (150)
Designation
13. Principal Officer Y VARCHAR (500)
Address
14. Principal Officer Y VARCHAR (15)
Mobile
15. Principal Officer Y VARCHAR (50)
Email
D.2. Mutual Fund Account Summary (MF_ACC_SUMM.TXT)
This file contains details of a person and summary values of the financial transactions for
the reporting period.
# Field Mandatory Format Remarks
1. Sequence Y DECIMAL (18,0) Running sequence number for
Number each line in the file. This
number will be used during
validation checks.
2. Financial Year Y VARCHAR (4) FY in which transaction was
recorded-YYYY
3. Reporting Period Y DATE Last day of the reporting
period DD-MM-YYYY
4. AMC Name Y VARCHAR (100) AMC’s Name
5. AMC Code Y VARCHAR (5)
6. Client ID Y VARCHAR (20) Unique Client ID maintained
by the reporting entity
7. Client PAN Y VARCHAR (10) PAN of the Client. Mention
PANNOTAVBL if no PAN is
available.
8. Client Name Y VARCHAR (250) First Holder’s name
8 Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund Transactions by Registrar and Share Transfer Agent
# Field Mandatory Format Remarks
9. Client Type Y VARCHAR (1) R - Resident
N- Non-resident
F - FII
Z – Not Classified
10. Client Status Y VARCHAR (1) M – Minor
O - Other
X - Not Classified
11. Guardian Name N VARCHAR(250) Mandatory if Client Status is
‘Minor’
12. Guardian PAN N VARCHAR(10) Mandatory if Client Status is
‘Minor’. Mention
PANNOTAVBL if no PAN is
available.
13. Client Aadhaar N VARCHAR (12) First Holder’s Aadhaar
14. Client DOB N DATE First Holder’s DOB/DOI in DD-
MM-YYYY
15. Client Address Y VARCHAR (400) First Holder’s Address
16. Client City N VARCHAR (40) First Holder’s Address-city
17. Client State code N VARCHAR (2) First Holder’s Address- State
(Refer Permissible values)
18. Client Pincode N DECIMAL (6,0) First Holder’s Address-
Pincode
19. Client Mobile N VARCHAR (15) First Holder’s Mobile Number
Number
20. Client E-mail ID N VARCHAR (100) First Holder’s E-mail ID
21. Joint holding Y VARCHAR (1) Whether joint holding exists VARCHAR (10) (Y/N) 22. Second Holder N Mandatory if Joint holding PAN exists. Mention PANNOTAVBL if no PAN is available.
23. Second Holder N VARCHAR (250) Mandatory if Joint holding Name exists
24. Second Holder N DATE Second Holder’s DOB/DOI in DOB DD-MM-YYYY
25. Third Holder PAN N VARCHAR (10) Mandatory if Joint holding exists. Mention PANNOTAVBL if no PAN is available.
26. Third Holder N VARCHAR (250) Mandatory if Joint holding exists Name
27. Third Holder N DATE Third Holder’s DOB/DOI in DD- MM-YYYY DOB
9 Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund Transactions by Registrar and Share Transfer Agent
# Field Mandatory Format Remarks 28. Opening Value Value of Holding as on first day Y DECIMAL (18,2) of reporting period Sum of purchase cost (net of 29. Purchase Value Y DECIMAL (18,2) transaction charges and stamp duty) during reporting period 30. Transaction Y DECIMAL (18,2) Sum of transaction charges DECIMAL (18,2) during reporting period Charges DECIMAL (18,2) Sum of stamp duty during reporting period 31. Stamp Duty Y Sum of Value of Units Sold (including TDS and excluding 32. Sale Value Y STT and Exit Load) during reporting period 33. STT Y DECIMAL (18,2) Sum of STT during reporting DECIMAL (18,2) period 34. Dividend Paid Y Sum of dividend received (inclusive of TDS) during 35. Closing Value Y DECIMAL (18,2) reporting period Total Value of Holding as on the last day of reporting period
Note: Refer Guidelines for preparation of SFT for more details
D.3. Mutual Fund Transaction Summary (MF_TRN_SUMM.TXT)
This file shall contain details of security level transaction summary in respect of sales/debits during the reporting period.
# Field Mandatory Format Remarks
1. Sequence Y DECIMAL (18,0) Running sequence number
Number for each line in the file. This
number will be used during
validation checks.
2. Financial Year Y VARCHAR (4) FY in which sale transaction
was recorded-YYYY
3. Reporting Y DATE Last day of the reporting
Period period DD/MM/YYYY
4. AMC Code Y VARCHAR (5)
5. Client ID Y VARCHAR (20) Client ID maintained by the
reporting entity
6. Client PAN Y VARCHAR (10) PAN of the Client. Mention
PANNOTAVBL if no PAN is
available.
10 Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund Transactions by Registrar and Share Transfer Agent
# Field Mandatory Format Remarks First Holder’s name 7. Client Name Y VARCHAR (250) See permissible values
8. Security Class Y VARCHAR (3) Unique security code (e.g. ISIN). Mention Code ISINNOTAVBLE if no ISIN is available. 9. Security Code Y VARCHAR (12) Name of security (scheme, plan and option) 10. Security Y VARCHAR (200) Date of Debit in DATE DD/MM/YYYY Name VARCHAR (1) Refer Guidelines A – AMC (redemption) 11. Debit Date Y VARCHAR (1) T – Transfer Refer Guidelines 12. Debit Type Y VARCHAR (1) A – AMC (purchase) T – Transfer 13. Credit Type Y DECIMAL (18,3) Refer Guidelines DECIMAL (18,2) S – Short Term 14. Asset Type Y DECIMAL (18,2) L – Long Term DECIMAL (18,2) Units sold or transferred. 15. Units Y DECIMAL (18,2) Refer Guidelines. DECIMAL (18,2) Estimated Sale price per unit. 16. Unit price Y DECIMAL (18,2) Estimated Sale Consideration. 17. Sale Y Estimated Cost of acquisition without indexation. Consideration FMV per unit as on 31.01.2018. Refer Guidelines 18. COA Y Total FMV as on 31.01.2018. If the long term capital asset 19. Unit FMV Y was acquired before 01.02.2018, Lower of Sale 20. Total FMV Y Consideration and Total FMV. 21. Adjusted N Cost of acquisition without indexation (higher of COA FMV and Adjusted FMV) Wherever applicable 22. Adjusted COA N DECIMAL (18,2) STT
23. Indexed COA N DECIMAL (18,2)
24. STT Y DECIMAL (18,2)
Note: Refer Guidelines for preparation of SFT for more details
11 Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund Transactions by Registrar and Share Transfer Agent
D.4. Mutual Funds Off-Market Transaction (MF_OFF_TRN.TXT) This file shall contain details of Mutual Fund off-market transactions recorded for a person/client during the year.
# Field Mandato Format Remarks 1. Sequence Number ry
Y DECIMAL (18,0) Running sequence
number for each line in
the file.
2. Financial Year Y VARCHAR (4) DATE 3. Reporting Period Y Last day of the reporting DATE period DD-MM-YYYY 4. Transfer Date Y Date format- DD-MM- VARCHAR (5) YYYY VARCHAR (20) 5. Transferor AMC Code Y VARCHAR (10)
6. Transferor Client ID Y VARCHAR (250) VARCHAR (5) 7. Transferor PAN Y VARCHAR (20) Mention PANNOTAVBL VARCHAR (10) if no PAN is available. 8. Transferor Name Y First Holder’s name VARCHAR (250) 9. Transferee AMC Code Y VARCHAR (3) VARCHAR (12) 10. Transferee Client ID Y VARCHAR (200) 11. Transferee PAN Y DECIMAL (18,3) Mention PANNOTAVBL DECIMAL (18,2) if no PAN is available. 12. Transferee Name Y DECIMAL (18,2) Refer Permissible values 13. Security Class Code Unique Security Code (e.g. ISIN) 14. Security Code Y Name of Security No of Units transferred 15. Security Name Y Consideration reported during transfer 16. Quantity transferred Y Redemption Offer Price (Exit Load adjusted NAV) 17. Reported Consideration N on the date of transfer Estimated Transaction 18. EOD Unit Price Y Value (End of day price) Refer Permissible Values 19. EOD Value Y DECIMAL (18,2) Reason
20. Reason Code Y VARCHAR (3)
21. Remarks N VARCHAR (100)
Note: Refer Guidelines for preparation of SFT for more details
12 Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund Transactions by Registrar and Share Transfer Agent
Permissible Values - Statement Type
# Code Description New Batch (Statement) containing new information 1. NB
2. DB Deletion Batch (Statement)
3. CB Correction Batch (Statement) containing corrections for previously submitted information
Permissible Values - Reason for Correction
# Code Description
1. A Acknowledgement of original Statement had many errors which are being resolved
2. B Errors in original Statement are being corrected suo-motu
3. C The correction report is on account of additional information being submitted
4. N Not applicable as this is a new statement/test data/ there is 5. Z no data to report
Other reason
Permissible Values – Security Class Code
# Security Class Code Description
1. EMF Unit of Equity Oriented Mutual Fund
2. UTI Unit of UTI
3. OTU Other Units
Permissible Values – Transaction Reason
# Reason Code Reason Description
1. TRD Transmission (change in holding in event of death of a holder) 2. OTH Other
3. ZZZ Not Specified
13 Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund Transactions by Registrar and Share Transfer Agent
Permissible Values - State code
# State/Union Territories Code AN 1. Andaman and Nicobar AP AR 2. Andhra Pradesh AS BR 3. Arunachal Pradesh CH DN 4. Assam DD DL 5. Bihar GA GJ 6. Chandigarh HR HP 7. Dadra and Nagar Haveli JK KA 8. Daman and Diu KL LD 9. Delhi MP MH 10. Goa MN ML 11. Gujarat MZ NL 12. Haryana OR PY 13. Himachal Pradesh PN RJ 14. Jammu and Kashmir SK TN 15. Karnataka TS TR 16. Kerala UP WB 17. Lakshadweep LA CG 18. Madhya Pradesh UK JH 19. Maharashtra
20. Manipur
21. Meghalaya
22. Mizoram
23. Nagaland
24. Orissa
25. Pondicherry
26. Punjab
27. Rajasthan
28. Sikkim
29. Tamil Nadu
30. Telangana
31. Tripura
32. Uttar Pradesh
33. West Bengal
34. Ladakh
35. Chhattisgarh
36. Uttarakhand
37. Jharkhand
14 Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund Transactions by Registrar and Share Transfer Agent
Table - Capital Gain Index Chart Cost Inflation Index (CII) 100 Financial Year 105 2001-02 (Base year) 109 2002-03 113 2003-04 117 2004-05 122 2005-06 129 2006-07 137 2007-08 148 2008-09 167 2009-10 184 2010-11 200 2011-12 220 2012-13 240 2013-14 254 2014-15 264 2015-16 272 2016-17 280 2017-18 289 2018-19 301 2019-20 2020-21
15 Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund Transactions by Registrar and Share Transfer Agent
Annexure E
Validation Rules
The errors have been classified in following categories:
Errors Record or report level errors which need to be resolved by user as per the specific error code.
Defects The reporting entity needs to correct and submit the reports again in the corrected statement.
Exceptions The exceptions should be reviewed by the reporting person/entities and if any information is available, the reporting entity may provide the information. If any defect is noticed, the reporting entity needs to rectify the defect by submitting a correction statement.
The validation rules are as under:
# Error Message Error Type File Rejection 1. Control Statement Values Mismatch Error Y Y 2. Sequence Number in Submitted file is not Error N running sequence number N 3. Client Data not provided for reported Defect N N transaction N
4. Mandatory Field is blank Defect
5. Invalid PAN reported Exception
6. Excessive Value Reported Exception
7. Mismatch identified after matching data with Exception
other submitted data
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