The Intelligence and Criminal Investigation Wing (ICTW) of the Income Tax Department, Nagpur Zone, recently carried out a survey at a private company in Akola after it failed to report dividend income of ₹1.20 crore as mandated under the Statement of Financial Transactions (SFT).
According to sources, the action was triggered by the non-visibility of SFT-15 data related to dividend income. The survey, conducted a few days ago, continued till late at night, with the absence of mandatory reporting forming the key basis for the operation.
SFT is a statutory reporting mechanism under the Income Tax Act that requires disclosure of specified high-value financial transactions. Filed annually in Form 61A, it enables tax authorities to independently track transactions and cross-verify them with income declared by taxpayers. Dividend income falls under SFT-15, placing the onus on companies distributing dividends to ensure proper reporting. This framework helps maintain transparency, supports data analytics, and aids in pre-filling taxpayer records.
The Akola action is part of a broader compliance drive across Vidarbha, including Nagpur district, where the Income Tax Department has intensified scrutiny of SFT filings in recent months. Authorities have flagged several cases of missing or incomplete SFT data across sectors, including property transactions reported by sub-registrar offices and cash-related disclosures by banks.
Officials said the department’s focus has shifted from isolated tax assessments to strengthening the integrity of the data ecosystem that underpins tax administration. The department has repeatedly stressed that SFT compliance is not a procedural formality but a critical pillar of information-driven enforcement. Inaccurate or missing SFT data can impact return pre-filling, weaken risk assessment, and reduce transparency in financial reporting.
Sources described the Akola survey as a significant development, noting that it is being viewed as the first instance in the country where a survey was primarily driven by gaps in SFT-15 dividend reporting, bringing routine corporate compliance firmly under the enforcement lens.
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