Income Tax SFT return filing 2023: In view of difficulties faced by filers due to heavy traffic on the reporting portal, the Income Tax Department has given a couple of days more for filing of SFT (Statement of Financial Transaction) returns.

“SFT filers may please note: Due to heavy traffic on the reporting portal, some filers may have encountered difficulties in filing SFT returns. It is informed that the functionality for filing of SFT returns will remain open for a couple of days more to enable smooth filing of SFT returns,” the Income Tax Department tweeted on Wednesday.

The last date to file the Statement of Financial Transactions (SFT) for FY 2022-23 is May 31st, 2023.Can you change tax regime while filing Income Tax Return (ITR)?

According to Income Tax Department, a delay in filing SFT may entail a penalty of up to Rs 1000 for each day of default. Non-filing or filing inaccurate statements may also lead to a levy of penalty.

SFT returns are filed by banks, foreign exchange dealers and other reporting entities to report high-value transactions done by their clients in 2022-23.

Under SFT, specified institutions are required to furnish the details of certain financial transactions or any reportable account registered/recorded/maintained by them during the year.

Through SFT, the Income-Tax department keeps track of high-value transactions undertaken by a person.

The reporting entities which are required to file SFT returns with tax authorities include foreign exchange dealers, banks, sub-registrar, NBFC, post offices, issuer of bonds/debentures, mutual fund trustees, company paying dividend or buying back shares.

Several users had earlier complained that the reporting site was not working.

“As per the provision of rule 114E of income tax rules read with action 285BA of income tax act, a reporting entity is required to upload SFT 61A up to 31st May 2023, but the reporting site is not working. Please provide relaxation as delay is because of failure at department’s end,” a user wrote to the Income Tax department yesterday.

Responding to the user, the tax department tweeted, “Due to heavy traffic on the reporting portal, there may be slight delay. Although our team is working on it, please try on a stable network. In case of any specific issue/query, you may contact our helpdesk at 1800 103 4215.”

Some users even claimed that the reporting portal was not working for last 3 days even whey they tried filing SFT with different networks.