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Taxation Central Ministry of Finance Income Tax Act, 1961

Format, Procedure, and Guidelines for submission of Statement of Financial Transactions (SFT) for Dividend income

20-Apr-2021 | Notification No. 1 of 2021

Central Board of Direct Taxes has issued a circular regarding format, procedure, and guidelines for submission of Statement of Financial Transactions (SFT) for Dividend income.
The key points are as follows-
1. A new sub-rule 5A of rule 114E was added for the the purposes of pre?filling the return of income, CBDT vide Notification No. 16/2021 dated 12.03.2021 to include reporting of information relating to dividend income, it specifies that the information related to dividend income paid/credited during the financial year shall be furnished in such form, at such frequency, and in such manner, as may be specified by the Director.
2. Reporting entities are required to prepare the data file in prescribed format from their
internal system.
3. The statement of financial transactions shall be furnished on or before the 31st May,
immediately following the financial year in which the transaction is registered or recorded, etc

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