SFT Filing Deadline on May 31: Why Taxpayers Must Check AIS Carefully
As the May 31 deadline for Statement of Financial Transactions (SFT) filing approaches, taxpayers are being advised to carefully review their tax records before filing Income Tax Returns (ITR). Incorrect reporting by financial institutions can create mismatches in official tax records and may lead to delays, notices, or refund issues.
What is SFT?
Statement of Financial Transactions (SFT) is a reporting system under the Income Tax Act where specified institutions provide details of certain financial transactions to the Income Tax Department through Form 61A.
Banks, mutual funds, companies, NBFCs, post offices, and other financial entities are required to report high-value or specified transactions made during a financial year.
Why the May 31 Deadline is Important
Every year, reporting entities must submit SFT details by May 31 following the end of the financial year. The information collected through SFT is used by the Income Tax Department to compare taxpayer disclosures with official financial transaction records during ITR processing.
If the information in tax returns does not match the details available in the system, taxpayers may face scrutiny notices, delayed refunds, or defective return issues.
Common Errors Found in SFT Reporting
Tax authorities have reportedly noticed several repeated mistakes in SFT submissions. Some of the most common issues include:
- Incorrect PAN details
- Duplicate transaction entries
- Wrong transaction values
- Errors in joint account reporting
- Delayed or incomplete submissions
Such mistakes can eventually appear in a taxpayer’s Annual Information Statement (AIS) and create confusion while filing returns.
Transactions Covered Under SFT
Financial institutions are required to report various transactions, including:
- High-value banking transactions
- Dividend payments
- Interest income
- Property-related transactions
- Mutual fund investments
- Listed securities transactions
These details are reflected in tax records and used for verification purposes.
What Taxpayers Should Do Before Filing ITR
Experts suggest that taxpayers should carefully verify their AIS and Form 26AS before starting the ITR filing process for the assessment year 2026-27.
If any mismatch, duplicate entry, or incorrect value is found, taxpayers should immediately raise a correction request through the official portal. Reviewing records early can help avoid last-minute stress and prevent delays in refunds or processing.
Taxpayers are also advised to ensure that PAN details, bank information, and investment records are correctly linked and updated.
ITR Filing Season Begins
The Income Tax Department has already enabled online filing for several ITR forms for the assessment year 2026-27. For individuals not covered under audit requirements, the last date to file Income Tax Returns is July 31, 2026.
With the filing season now underway, checking AIS and SFT-related entries early can help ensure smooth and error-free tax return submission.
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