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Corrigendum to Notification No.3. of 2021
Government of India
Ministry of Finance
Central Board of Direct Taxes
Directorate of Income Tax (Systems)
Corrigendum to Notification No. 3. of 2021
New Delhi, 15/11/2023
Format, Procedure and Guidelines for submission of Statement of Financial
Transactions (SFTl for Depository Transactions.
The format, procedure, and guidelines for submission of information
relating to capital gains on transfer of listed securities or units of mutual
funds by Depository Institutions was notified vide notification no. 3 of 2021
dated 30th April 2021 as per the mandate of Section 28SBA of the Income Tax
Act, 1961 and Rule 114E sub-rule SA. The notification lists various files, file
formats, data types for different data fields that need to be reported, and
various DQ rules that should be validated by Depository Institutions before
submission of the data.
2.
Subsequently, discussions were held with representatives of Depository
Institutions. Accordingly, following changes are made to the said notification.
3.
The S.No. 6 of the existing notification mentions the following
"The statement offinancial transactions relating to Financial Year 2020-
21 shall be furnished on or before the 31 st May 2021. Thereafter, the
statement of financial transactions relating to the quarter ending 30th
June, 31 st September, 31 st December and 31 st March shall be furnished
on or before 25th of July, October, January and April respectively. »
This should be read as following:
"With effect from 1st April 2023 the statement of financial transactions
data will be submitted on half yearly basis instead of existing quarterly
basis i.e. data relating to 1st half of the Financial Year ending 30th
September and remaining half of the FinanCial Year ending on 31 st March
shall be furnished on or before 31 s t of October and 30th of April
respectively. "
4.
In annexure A (Guidelines for Preparation of Statement of Financial
Transactions (SFT)) of the existing notification, S.No.3 mentions the following:
"The Estimated Sale Consideration for the debit transaction should be
detennined on the best possible available price of the asset with the
Corrigendum to Notification No.3. of 2021
depository (e.g. end of day price). The taxpayer will be able to modify the
sales consideration before filing the retum. "
This should be read as following:
"The Estimated Sale Consideration for the debit transaction should be
determined on Weighted Average Price i.e., taking into actual value
of the transactions executed. The taxpayer will be able to modify the
sales consideration before filing the return."
S.
In annexure A (Guidelines for Preparation of Statement of Financial
Transactions (SFT)) of the existing notification, S.No.S mentions the following:
Security Class
Security Class Description
Minimum Period of
Code
Holding
LES
Listed Equity Share
12 months
LPS
Listed Preference Share
12 months
lOB
Listed Debenture
12 months
ZCB
Zero Coupon Bond
12 months
CIB
Listed Capital Indexed Bond
12 months
EMF
Unit
of
Equity
Oriented
12 months
Mutual Fund
UTI
Unit of UTI
12 months
UBT
Unit of Business Trust
36 months
OTU
Other Units
36 months
OTH
Other Listed Securities (Other 12 months
than a unit)
This should be read as following:
Security
Security
Class
Minimum
Remarks
Class Code
Description
Period
of
Holding
LES
Listed Equity Share
12 months
-
LPS
Listed Preference Share
12 months
-
LDB
Listed Debenture
12 months
-
ZCB
Zero Coupon Bond
12 months
-
ClB
Listed Capital Indexed
12 months
-
Bond
EMF
Unit of Equity Oriented
12 months
-
Mutual Fund
UTI
Unit of UTI
12 months
Where more than 35% of its
total proceeds are invested
in
the equity shares of
domestic companies, this
;
Corrigendum to Notification No.3. of 2021
Security
Security
Class
Minimum
Remarks
Class Code
Description
Period
of
Holding
information
should
be
provided.
Note: Where not more than
35% of its total proceeds are
invested in the equity shares
of
domestic
companies,
(Specified Mutual Fund), it
will always be classified as
short-term capital asset
(Applicable from 1st April
2023)
UBT
Unit of Business Trust
36 months
Where more than 35% of its
total proceeds are invested
in
the equity shares of
domestic companies, this
information
should
be
provided.
Note: Where not more than
35% of its total proceeds are
invested in the equity shares
of
domestic
companies,
(Specified Mutual Fund), it
will always be classified as
short-term capital asset
(Applicable from 1st April
2023)
OTU
Other Units
36 months
Where more than 35% of its
total proceeds are invested
in
the equity shares of
domestic companies, this
information
should
be
provided.
Note: Where not more than
35% of its total proceeds are
invested in the equity shares
of
domestic
companies,
(Specified Mutual Fund), it
will always be classified as
short-term capital asset
(Applicable from 1st April
2023)
OTH
Other Listed Securities
12 months
-
(Other than a unit)
MLD
Market
Linked --
Short-Term Capital Assets
Debenture
(w.e.f. 1st April 2024)
Corrigendum to Notification No.3. of 2021
6 .
In annexure A (Guidelines for Preparation of Statement of Financial
Transactions (SFT)) of the existing notification, S.No.6 mentions the following:
"For every debit transaction, the corresponding credit transaction should
be identified using First in First Out (FIFO) method. The estimated cost of
acquisition for the credit should be determined on the best possible
available price with the depository. The cost of acquisition can be
estimated as per the closing rate on the date (T-2) of transaction for
market purchase. The estimated cost of acquisition is to be taken as NIL
for OFF Market purchase, [PO or Corporate Action or for any transaction
through other than Exchange. The taxpayer will be able to modify the cost
of acquisition before filing the return. »
This should be read as following:
"For every debit transaction, the corresponding credit transaction should
be identified using First in First Out (FIFO) method. The estimated cost of
acquisition for the credit should be determined on weighted average
price of the asset i.e taking into actual value of the transactions,
if purchase was made after l·t February 2018 or End of the day
price, if purchase was made before 1st February 2018, available
with the depository. The estimated cost of acquisition is to be taken as
NIL for OFF Market purchase, Corporate Action or for any transaction
through other than Exchange. IPO credit will be treated as Market
credit and cost of the acquisition of the same will be arrived using
the formula i.e. Number of shares allotted x Per unit price at
which share is allotted. The taxpayer will be able to modify the
cost of acquisition before filing the return."
7 .
In
annexure
D
(D.3-
Depository
Transaction
Summary
(DEP 3RN_Summ.TXT)) of the existing notification, the data fields 16,17 & 18
is mentioned as following
#
Field
Mandatory Format
Remarks
16. Unit
Sale Y
DECIMAL
Estima ted Sale price
pnce
(18,2)
per unit.
17. Sale
Y
Decimal
Estima ted
Sale
Consideration
( 18,2)
Considera tion. Refer
Guidelines
COA
y
DECIMAL
Estimated Cost of
18.
(18,2)
acquisi tion without
indexation.
Refer
Guidelines
Corrigendum to Notification No.3. of 2021
These should be read as following:
#
Field
Mandatory Format
Remarks
16. Unit price
Y
DECIMAL
Weighted
Average
( 18,2)
sale price per unit
(taking into account
the actual value of
the transactions)
17. Sale
Y
Decimal( 18,2) Estimated
Sale
Consideration
Consideration
at
Weighted
Average
price
(taking into
account the actual
value
of
the
transactions)
18. COA
Y
Decimal( 18,2) Estimated Cost of
acquisition without
indexation
Refer
Guidelines.
8.
In
annexure
D
(D.3-
Depository
Transaction
Summary
(DEP _TRN_Summ.TXT)) of the existing notification, a new data field 24 is
added for flag indication if the purchase of the security was before 1st
February 2018 or after
#
Field
Mandatory *Flag Format
Remarks
24. Purchase Y
B/A
VARCHAR(l) Flag B: Purchase was
Flag
made
before
1st
February 2018
Flag A: Purchase was
made on or after 1 st
February 2018
~L_
(AMITAV) .
DGIT(Systems), Delhi
Copy to:
1. PPS to the Chairman and Members, CBDT, North Block, New Delhi.
2 . All Pr. Chief Commissioner / Pr. Director Generals of Income Tax and all
Chief Commissioners/ Director Generals of Income Tax-with a request
to circulate amongst all officers in their regions/ charges.
3. JS (TPL)-I &2/ Media coordination and Official spokesperson of CBDT
Corrigendum to Notification No.3. of 2021
4. DIT(IT) j DIT (Audit) j DIT (Vig.)jADO (System) 1,2,3,4,5,6,7 / CIT
(CPC)
Bangalorej
CIT
(CPC-TDS)
Ohaziabadj
CIT
(ITBA)j
CIT(OSD)(PMU).
5. ADO (PR,PP&OL) with a request for advertisement campaign for the
Notification.
6. TPL and ITA Divisions of CBDT.
7. The Institute of Chartered Accountants of India, IP Estate, New Delhi.
8. Web Manager, "incometaxindia.gov.in" for hosting on the website.
9. Database cell for uploading on www.irsofficersonline.gov.in and in
DOIT(S) Corner.
10.
ITBA publisher for uploading on ITBA portal.
J.-A-~;-I _
..
DGIT(Systems), Delhi
