CBDT notifies furnishing information on capital gains, dividend and interest

Introduction

A Statement of Financial Transactions (SFT) is supposed to be furnished in a prescribed form/ manner by a class of specified persons (reporting persons) as per the Income Tax Act. A new sub-rule 5A has been inserted under Rule 114E, identifying additional reporting requirements by a person's class.

The frequency and manner of furnishing the statement of the financial transaction are to be specified.

Applicability

S. No.

Nature of transaction

Class of person

Capital gain on transfer of listed securities/ units of Mutual Funds

Recognised Stock Exchange;
depository as defined in clause (e) of sub-section (1) of Section 2 of the Depositories Act, 1996 (22 of 1996);
Recognised Clearing Corporation;
Registrar to an issue & share transfer agent registered under sub-section (1) section 12 of the Securities & Exchange Board of India Act.

Dividend income

A company

Interest income

A banking company or co-operative bank which Banking Regulation Act, 1949 (10 of 1949) applies (including any bank/ banking institution referred to in Sec 51 of the Act);
Post-Master General referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898).
The non-banking financial company hold a certificate of registration under section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934) hold or accept the public's deposit.

Impact

Companies paying dividend/ other reporting persons enlisted above shall have to ensure compliance and reporting requirement.

Based on the SFT, the Income Tax Returns of the recipients shall be pre-filled with the amount of dividend income, interest income and income from capital gains on transfer of listed securities or units of Mutual funds.

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Jun 02, 2023

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CBDT notifies furnishing information on capital gains, dividend and interest

Introduction

Applicability

Impact

Manish Gupta

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S. No.	Nature of transaction	Class of person
	Capital gain on transfer of listed securities/ units of Mutual Funds	Recognised Stock Exchange; depository as defined in clause (e) of sub-section (1) of Section 2 of the Depositories Act, 1996 (22 of 1996); Recognised Clearing Corporation; Registrar to an issue & share transfer agent registered under sub-section (1) section 12 of the Securities & Exchange Board of India Act.
	Dividend income	A company
	Interest income	A banking company or co-operative bank which Banking Regulation Act, 1949 (10 of 1949) applies (including any bank/ banking institution referred to in Sec 51 of the Act); Post-Master General referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898). The non-banking financial company hold a certificate of registration under section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934) hold or accept the public's deposit.