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High-value transaction notice: SFT and AIS mismatch

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Find

Statement of Financial Transactions (SFT) requires banks, mutual funds, registrars, and others to report high-value transactions to the IT department. These appear in your AIS. When your AIS shows a transaction that doesn't appear in your ITR, you get a notice.

Provisions

IT Act, Sec 285BA | SFT Rules | AIS (Annual Information Statement)

Analysis

Common SFT triggers: Cash deposit above ₹10L in savings account. FD above ₹10L. MF purchase above ₹10L. Property sale above ₹30L. Credit card spend above ₹1L/month (for cash payers). Share transactions above ₹10L. The notice asks: "We see this transaction in your AIS. Why is it not reflected in your ITR?" Your response must explain the source, income already taxed, exempt income, loan, gift from relative, etc.

Close

  1. Identify the specific transaction in your AIS (amount, counterparty, date)
  2. Match to your bank statement, ITR, or investment records
  3. If the income was declared: point to the exact schedule in your ITR where it appears
  4. If it's exempt income (LTCG within limit, gift from relative, inherited): explain with documentary evidence
  5. If it's a genuine omission: file revised ITR if within time, or respond with voluntary disclosure

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