Last reviewed: 25 September 2026. Form 61A - the Statement of Financial Transactions - is how banks, companies and other reporting entities tell the tax department about high-value transactions, and it is the source of much of what appears in your AIS. Most people assume SFT reporting is someone else's problem - a bank's, a registrar's, a mutual fund's. It usually is, with one sharp exception: if your business is liable for tax audit under Section 44AB and you receive cash payment exceeding Rs 2 lakh for goods or services, Rule 114E makes you a reporting person too - not your auditor, not your bank, you. This guide covers who must file, the Rule 114E thresholds transaction-by-transaction, a worked example for tax-audit clients, the ITDREIN registration, the 31 May due date, and the penalties for getting it wrong. It also covers what changes for FY 2026-27 transactions under the Income-tax Act, 2025.
At a glance
Who must file and what is reported
Specified reporting persons - banks and NBFCs, companies issuing or buying back shares, property registrars, mutual funds and credit-card issuers - report high-value transactions in Form 61A. Typical reportable items include large cash deposits, property transactions above a threshold, significant investments in shares, mutual funds or bonds, and large credit-card payments, each governed by its own prescribed limit under Rule 114E.
Rule 114E thresholds: the transactions that trigger SFT reporting
Rule 114E prescribes a specific list of transactions and thresholds. Crossing a threshold does not by itself mean you owe extra tax on that amount - it means the transaction gets reported to the department, and it will typically surface in your AIS. The illustrative thresholds below are the ones taxpayers and businesses ask about most:
| Transaction | Threshold (per FY) | Reported by |
|---|---|---|
| Cash deposits in savings account(s) | Rs 10 lakh or more (aggregate) | Bank / post office |
| Cash deposits or withdrawals in current account(s) | Rs 50 lakh or more (aggregate) | Bank |
| Cash payment for term deposits | Rs 10 lakh or more (aggregate) | Bank / NBFC / post office |
| Credit card bill payments | Rs 1 lakh or more in cash, or Rs 10 lakh or more by other modes | Bank / credit card company |
| Purchase of mutual fund units | Rs 10 lakh or more | Mutual fund / AMC |
| Purchase of shares, bonds or debentures issued by a company (incl. buyback) | Rs 10 lakh or more | Company |
| Purchase or sale of immovable property | Rs 30 lakh or more (transaction or stamp duty value) | Registrar / sub-registrar |
| Cash receipt for sale of goods or services, by a person liable to tax audit u/s 44AB | Exceeding Rs 2 lakh (from one person, in aggregate) | The tax-audit person themselves |
These are illustrative and reflect Rule 114E of the 1962 Rules, which governs FY 2025-26 transactions. For FY 2026-27 transactions, confirm the current description and threshold against the corresponding table in the Income-tax Rules, 2026 before relying on it.
When a tax-audit client becomes a reporting person
The last row above is the one most business owners miss, because it does not involve a bank or an institution at all - it involves them. Consider a retail trader whose turnover has crossed the tax-audit threshold, so a tax audit report under Section 44AB is filed for the business every year. During the year, one customer pays the trader Rs 3.5 lakh in cash, spread across a handful of bills, for goods purchased. Because (a) the trader is a person liable for tax audit under Section 44AB, and (b) the cash received from that one customer exceeds Rs 2 lakh, the trader themselves - not a bank, not the auditor - becomes a specified reporting person for that transaction. The trader must obtain an ITDREIN, file Form 61A reporting the receipt, and meet the same 31 May due date - a compliance step entirely separate from filing the income tax return or the tax audit report itself. Skip it, and the Section 271FA penalty clock starts running from the due date, same as it would for a bank.
If you are not yet sure whether Section 44AB tax audit even applies to your business, start with our tax audit applicability checker for AY 2026-27 - this Rs 2 lakh cash-receipt SFT trigger only matters once 44AB already applies to you. And once audit does apply, our 3CD data pack document checklist is a good place to get your records - including large single-customer cash receipts - organised before the audit begins.
ITDREIN, due date and penalty
A reporting entity first obtains an ITDREIN registration, then files Form 61A by 31 May following the financial year. Non-filing attracts a penalty under Section 271FA - broadly Rs 500 per day, rising to Rs 1,000 per day if the default continues after notice - along with penalties for inaccurate reporting.
Missed the 31 May 2026 deadline?
The statement for FY 2025-26 was due by 31 May 2026. If it has not been filed, file it now: the Rs 500 per day penalty runs from the due date, so a statement filed on 30 September 2026 has already built up about four months of exposure. If the department intimates a defect in a statement already filed, the reporting entity must normally correct it within 30 days of the intimation, failing which the statement is treated as not filed. A reporting entity that has no reportable transactions should still check whether a preliminary or nil response is expected on the reporting portal, rather than filing nothing.
From FY 2026-27: SFT under the Income-tax Act, 2025
Transactions from 1 April 2026 are reported under the Income-tax Act, 2025 and the Income-tax Rules, 2026. The 1961 references above (Rule 114E, section 285BA, section 271FA and section 44AB) remain correct for FY 2025-26 statements. For FY 2026-27 statements, due by 31 May 2027:
| Item | FY 2025-26 (1961 Act) | FY 2026-27 onward (2025 Act) |
|---|---|---|
| Statement of financial transactions | Form 61A, section 285BA | Form 165, section 508(1) |
| Penalty for not filing | Section 271FA | Section 454 |
| Tax audit (the trigger for the cash-receipt row) | Section 44AB, Form 3CD | Section 63, Form 26 |
| Transaction list and thresholds | Rule 114E | The corresponding rule of the Income-tax Rules, 2026 (check the notified table before relying on the thresholds above) |
Why it matters for every taxpayer
Even if you never file a 61A, its output lands in your AIS. That is why reconciling your income tax return with the AIS is so important - the department already has these high-value transactions on record, and mismatches invite questions. Our guide to reconciling Form 16, 26AS and AIS covers that step, and the tax audit limits and due dates guide covers the audit that brings a business into the cash-receipt row.
Frequently asked questions
What is Form 61A / the SFT?
Form 61A is the Statement of Financial Transactions, through which specified reporting entities - banks, companies, registrars, mutual funds and others - report high-value transactions to the income tax department. It feeds the data you see in your AIS. For transactions from 1 April 2026 the statement is Form 165 under section 508(1) of the Income-tax Act, 2025.
Who has to file Form 61A?
Specified reporting persons such as banks, NBFCs, companies issuing shares or buying back shares, registrars of property, mutual funds and credit-card issuers - not ordinary individual taxpayers. But Rule 114E also pulls in a category people forget: any person liable for tax audit under Section 44AB who receives cash exceeding Rs 2 lakh for goods or services becomes a reporting person too.
What is the due date?
Form 61A is due by 31 May following the financial year in which the reportable transactions took place. The FY 2025-26 statement was due by 31 May 2026; the statement for FY 2026-27 is due by 31 May 2027.
What kinds of transactions are reported?
High-value transactions such as large cash deposits, purchase or sale of immovable property above a threshold, large investments in shares, mutual funds or bonds, significant credit-card payments, and - for tax-audit clients specifically - cash receipts exceeding Rs 2 lakh for sale of goods or services, each with its own prescribed limit under Rule 114E.
What is ITDREIN?
ITDREIN (Income Tax Department Reporting Entity Identification Number) is the registration a reporting entity obtains to file the SFT. You register once and use it for subsequent filings.
What is the penalty for not filing?
Non-filing attracts a penalty under Section 271FA - broadly Rs 500 per day, increasing to Rs 1,000 per day if the default continues after a notice - plus penalties for inaccurate reporting. For statements relating to FY 2026-27 onward the penalty provision is section 454 of the Income-tax Act, 2025 (old 271FA).
How does the SFT connect to my AIS?
The transactions reported in various Form 61A filings are consolidated into your Annual Information Statement, which is why reconciling your return with the AIS matters so much.
What if a reporting entity has no reportable transactions?
Where required, a nil or preliminary response may still need to be submitted; reporting entities should confirm their obligation rather than assume they are exempt.
I am liable for tax audit under Section 44AB - could I be a Form 61A reporting person myself?
Yes. Under Rule 114E, any person liable for tax audit under Section 44AB who receives cash payment exceeding Rs 2 lakh for sale of goods or services of any nature must report that receipt in Form 61A - the same obligation that otherwise falls on banks and companies. Many tax-audit clients do not realise this rule reaches them directly, not just the institutions they deal with.
I missed the 31 May 2026 deadline for FY 2025-26. What now?
File the statement now through the reporting portal. The Rs 500 per day penalty under section 271FA runs from the due date until filing, so each day of further delay adds to it. If the department later points out a defect in a statement already filed, it must normally be corrected within 30 days of that intimation, or the statement is treated as not filed.
We handle ITDREIN registration and accurate, on-time Form 61A filing, including the tax-audit cash-receipt trigger, and help you reconcile AIS data.
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