The Office of the Income Tax Officer conducted an outreach programme on the provisions and procedural aspects of filing of Statement of Financial Transactions (SFT), in Visakhapatnam on Friday.

The programme was attended by branch managers of District Cooperative Central Banks (DCCBs) from Visakhapatnam, Vizianagaram, Srikakulam and Anakapalli districts, key stakeholders in the compliance and dissemination framework under the Act.

During the session, the vital role of DCCBs in rural credit delivery and financial inclusion of small traders and rural entrepreneurs was highlighted. Officials emphasised the importance of accurate filing of Statement of Financial Transactions (SFT) in Form 61A, which enables the department to identify high-risk cash transactions and strengthen non-intrusive, data-driven tax administration.

Participants were sensitised on reporting requirements relating to cash deposits and withdrawals in savings and current accounts during a financial year. Common errors in SFT filing, such as non-aggregation of accounts across branches, incorrect date formats and non-reporting of Form 60 cases, were also addressed.

Special emphasis was laid on error-free filing of Form 61A before the due date of 31st May 2026 to avoid penalty under Section 271FA, which provides for a levy of ₹500 per day for delayed compliance.

Officials of the Income Tax Department explained the reporting and compliance obligations applicable to banking institutions, including prescribed forms, statutory timelines, digital filing procedures, maintenance of records and updated compliance mechanisms.

The officials opined that such outreach initiatives are aimed at promoting better understanding of the provisions of the Act and facilitate smooth implementation of the Income Tax Act, 2025 through effective stakeholder engagement.