A Statement of Financial Transaction, or SFT, is a document that provides detailed information about a financial transaction. It is typically used by businesses to keep track of their expenses, income, and other financial activities. SFTs can be used for both personal and business purposes. For businesses, they can help track employee spending, monitor inventory levels, and measure overall profitability. For individuals, SFTs can help monitor spending patterns and budget for future purchases.
What is an SFT?
An SFT is a statement of financial transaction that records all of the financial activities of an individual or organization. This statement can be used to track spending, income, and debts over time.
How to file an SFT
If you need to file an SFT, the process is relatively simple. You will need to gather some basic information about your financial transactions, including the date, type of transaction, and amount. Once you have this information, you can log into the online system and begin filling out the form.
The first step is to select the type of transaction you are reporting. There are four options: income, expense, asset, or liability. After selecting the type of transaction, you will need to enter the date and amount. Finally, you will need to provide a description of the transaction. Once all of the required information has been entered, you can submit the form for review.
When to file an SFT
The Statement of Financial Transactions (SFT) is a document that must be filed with the Registrar of Companies (ROC) if a company has certain types of transactions during the financial year.
The SFT must be filed within 30 days of the date on which the transactions took place.
The following types of transactions must be reported in an SFT:
- Sale or transfer of shares or other securities.
- Sale or transfer of assets.
- Granting of loans and advances.
- Acquiring or disposing of interests in companies, trusts, and partnerships.
- Giving guarantees and indemnities.
The Benefits of Filing an SFT
There are many benefits of filing an SFT, including:
- You can track your spending and income to see where your money is going
- You can use your SFT to prepare your taxes
- You can use your SFT to apply for loans or credit cards
- Your SFT can help you keep track of your investments and asset portfolio
- You can use your SFT to monitor your financial progress and goal
The Penalties for Not Filing an SFT
If you fail to file an SFT, you may be subject to a civil penalty of up to $10,000. Additionally, if you willfully fail to file an SFT, you may be subject to a criminal penalty of up to $100,000 or imprisonment for up to one year, or both.
Also Read: National Savings Certificate – NSC