What the notification does
The Central Board of Direct Taxes has amended Rule 114E of the Income-tax Rules, 1962, introducing modified reporting thresholds and revised data elements for specified financial transactions (SFT). Key alterations include:
- Introduction of granular schema codes for high-value cash deposits and credit card settlements.
- Mandatory capture of verified PAN/Aadhaar references for joint and non-individual accounts.
- Revised validation rules for reporting foreign currency remittances under the Liberalised Remittance Scheme.
Who it affects
Banking companies, non-banking financial companies (NBFCs), co-operative societies, mutual funds, and companies issuing shares or bonds.
Points for finance teams
| ACTION | BY WHEN | OWNER |
|---|---|---|
| Map core banking / accounting schemas to revised Form 61A fields | 30 November 2026 | IT / Systems team |
| Conduct test run of electronic SFT filing on reporting portal | 15 December 2026 | Compliance officer |
| Finalise reconciliation of annual aggregate account values | 31 January 2027 | Accounts / internal audit |
The firm's note
Reporting entities will need to update their extraction logic for the revised fields before the statement for calendar year 2026 is filed. Financial institutions and reporting companies should conduct a gap analysis of their current transaction-capture systems.
Disclaimer. This note is a summary prepared by M Rishabh & Associates for general information as on 26 October 2026. It is not professional advice. Refer to the official notification for the full text, which prevails in case of any difference. See the full disclaimer.