Form 26AS: Share transactions, health insurance premium to be reported: full list of SFTs

Published: August 18, 2020 at 10:23 am

Recently the income tax department announced a new specified financial transaction (SFTs) that will be reported under form 26 AS. These include life insurance premium, health insurance premium, share transactions among others. Here is a full list of such STFs.

What used to be a simple tax credit statement available to every taxpayer is now a complete blueprint of your high-value financial transactions. We had earlier published the first list of changes announced in form 26AS in July 2020. This article will focus on additional changes and also provide a full list of reportable SFTs.

About the author: Anjesh Bharatiya is a 30+ taxman by profession and a Chemical Engineer by education. He has been an investor in the stock market since age 15! He likes to write about personal finance, stock markets, government policies, taxation, philosophy and football.

Also by Anjesh: (1) Want to trade in stocks? Here is how your income will be taxed(2) How to use Tax benefits on HRA and home loans (3) How to get tax benefits under a Hindu Undivided Family (HUF).


On 13th August 2020, the Hon’ble PM unveiled a significant number of tax reforms mainly related to facilitating honest taxpayers through the introduction of a ‘Taxpayers’ Charter’ and focusing on faceless assessments & appeals. Also introduced were a few more changes extending the scope of SFTs (Specified Financial Transactions) which are specified high-value transactional information sourced from Banks, Mutual Funds and other such Financial Institutions and will be reflected in your Form 26AS. These institutions are required to file a report under Section 285BA of the Income Tax Act on certain transactions above a threshold value. The Income Tax Department also specified certain categories of taxpayers who were compulsorily required to file Income Tax Returns.

List of specified financial transactions to be available in Form 26AS

The additional SFTs that will now be reportable and will be visible in the Form 26AS are:

  • Payment of educational fees/donations above Rs 1 lakh in a year
  • Hotel bills exceeding Rs 20,000
  • Purchase of jewellery, white goods, marbles, paintings etc. exceeding Rs 1 lakh in a year
  • Life insurance premium payment over Rs 50,000 per annum
  • Payment of property tax above Rs 20,000 per annum
  • Electricity bill payment above Rs 1 lakh per annum
  • Health insurance premium payment above Rs 20,000
  • Domestic business class air travel/ foreign travel (threshold limit not yet specified)
  • Share transactions/ demat accounts/ bank lockers (threshold limit not yet specified)

The SFT transactions already reportable are:

  • Purchase of bank drafts or pay orders in cash (if more than Rs 10 lakh in a year)
  • Purchase of pre-paid instruments in cash (if more than Rs 10 lakh in a year)
  • Cash deposit in the current account (if more than Rs 50 lakh in a year).
  • Cash deposit in account other than current account (if more than Rs 10 lakh in a year).
  • Time deposit (if more than Rs 10 lakh in a year).
  • Payment for credit card (if more than Rs 10 lakh in a year through non-cash methods. Limit is Rs 1 lakh for cash payments)
  • Purchase of debentures (if more than Rs 10 lakh in a year)
  • Purchase of shares (if more than Rs 10 lakh in a year)
  • Buyback of shares (if the tendered value is more than Rs 10 lakh in a year)
  • Purchase of mutual fund units (if more than Rs 10 lakh in a year)
  • Purchase of foreign currency (if more than Rs 10 lakh in a year)
  • Purchase or sale of immovable property (if more than Rs 30 lakh in a year).
  • Cash payment for goods and services (if more than Rs 2 lakh in a year)
  • Cash deposits during a specified period of 9th Nov to 30th Dec 2016 (if more than Rs 12.5 lakh in a current account or Rs 2.5 lakh in other accounts)

Compulsory filing of Income Tax Return

The Government has also specified compulsory filing of ITR for the following persons:

  • A person having bank transactions over Rs 30 lakh in a year
  • A person making payment of rent over Rs 40,000 in a year
  • All professionals and businesses having turnover exceeding Rs 50 lakh in a year

The Government has also proposed deduction/collection of tax at higher rates for non-filers of return. The exact details of these measures and dates of implementation will also be notified soon.

Summary: For the Income Tax Department, these measures are aimed at matching consumption and investment patterns of taxpayers with their return profile. The PM exhorted the taxpayers in his speech on 13th August to pay proper taxes after ‘atmachintan’. He also pointed out the abysmally low percentage of taxpayers in India. The PM also said that henceforth, every taxpayer will be considered honest unless proved otherwise. The percentage of returns subjected to tax scrutiny is also coming down every year and all future proceedings will be conducted in a faceless and transparent manner. With this additional information being captured by the Department, the aim is to widen the tax base and it is imperative for taxpayers to properly reflect their transactions in their ITRs.

Do share if you found this useful

Use our Robo-advisory Excel Template for a start-to-finish financial plan! Now with a new demo video!  More than 640 investors and advisors use this!
Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! More than 2525 investors and advisors are part of our exclusive Facebook Group! Get clarity on how to plan for your goals and achieve the necessary corpus no matter what the market condition is!! Watch the first lecture for free!  One-time payment! No recurring fees! Life-long access to videos in an exclusive Facebook Group! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course!  Increase your income by getting people to pay for your skills! More than 585 salaried employees, entrepreneurs and financial advisors are part of our exclusive Facebook Group! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts you and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos in an exclusive Facebook Group!   
My new book for kids: “Chinchu gets a superpower!” is now available!
Both boy and girl version covers of Chinchu gets a superpower
Both boy and girl version covers of Chinchu gets a superpower.
Most investor problems can be traced to a lack of informed decision making. We have all made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain? What is this book about? As parents, if we had to groom one ability in our children that is key not only to money management and investing but for any aspect of life, what would it be? My answer: Sound Decision Making. So in this book, we meet Chinchu, who is about to turn 10. What he wants for his birthday and how his parent’s plan for it and teach him several key ideas of decision making and money management is the narrative. What readers say!
Feedback from a young reader after reading Chinchu gets a Superpower (small version)
Feedback from a young reader after reading Chinchu gets a Superpower!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.
Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Did you know? We have more than 1000+ videos on YouTube to explore! Join our YouTube Community!

Want to check if the market is overvalued or undervalued? Use our market valuation tool (will work with any index!), or you buy the new Tactical Buy/Sell timing tool!
We publish mutual fund screeners and momentum, low volatility stock screeners .every month.
About the Author Pattabiraman editor freefincalM. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. since Aug 2006. Connect with him via Twitter or Linkedin Pattabiraman has co-authored three print books, You can be rich too with goal-based investing (CNBC TV18), Gamechanger, Chinchu Gets a Superpower! and seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation to promote unbiased, commission-free investment advice. He conducts free money management sessions for corporates and associations based on money management. Previous engagements include World Bank, RBI, BHEL, Asian Paints, Cognizant, Madras Atomic Power Station, Honeywell, Tamil Nadu Investors Association, IIST Alumni Association. For speaking engagements, write to pattu [at] freefincal [dot] com
About freefincal & its content policy Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on developments in mutual funds, stocks, investing, retirement and personal finance. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified from credible and knowledgeable sources before publication. Freefincal does not publish any paid articles, promotions, PR, satire or opinions without data. All opinions presented will only be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
Our publications

You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingPublished by CNBC TV18, this book is meant to help you ask the right questions, seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now. It is also available in Kindle format.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantThis book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.

Your Ultimate Guide to Travel

Travel-Training-Kit-Cover-new This is an in-depth dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step. Get the pdf for Rs 199 (instant download)
Free android apps