Recently, in an advisory issued to Companies, the Income Tax Department required them to furnish SFT in respect of certain specified transactions.
The Companies/ Institutions issuing bonds or debentures, on receipt from any person for acquiring anybody or debentures for Rs. Ten lakh or more shall give report to the Department.
In case of a Company issuing shares, sale of shares worth ten lakh or more must be reported. This is applicable to share application money also.
In case of a listed Company purchasing its own shares under section 68 of the Companies Act are directed to furnish reports on buy back of shares from any person for an amount of Rs ten lakh or more.
Respective heads of the Companies are required to furnish the statement online in respect of the above transactions in Form 61A on or before 31st AY 2017.
It is said that “the transactions listed above are in addition to other transactions specified in Rule 114E which may be reportable by eligible companies.”
