The CBDT vide Notification No. 1 of 2023 (Income-Tax) dated January 5, 2023 has issued an addendum in its earlier issued Notification No. 2 of 2021 (Income-Tax) dated April 20, 2021 (“Notification No. 2”), which prescribed the format, procedure, and guidelines for submission of Statement of Financial Transactions (“SFT”) for interest income, in order to modify the guidelines for the preparation of SFT, in a following manner:
- W.e.f. January 5, 2023, the information w.r.t. SFT is to be reported for all account/deposit holders where any interest exceeds zero per account in the financial year excluding Jan Dhan Accounts, so as to abolish the earlier limit of INR 5000/-.
The Notification can be accessed at: https://incometaxindia.gov.in/communications/notification/notification-1-2023-systems.pdf