New SFT Reporting Formats under Income-tax Act, 2025: SFT-2517 & SFT-2518 Explained

Published Date: 10 September 2026

The Central Board of Direct Taxes (CBDT) has notified two new Statement of Financial Transactions (SFT) reporting formats under the Income-tax Act, 2025. These formats are designed to improve the availability of financial transaction information for pre-filling capital gains, income and losses in taxpayers’ Income Tax Returns (ITRs).

The new formats are:

1. SFT-2517 – Depository Transactions
2. SFT-2518 – Mutual Fund Transactions

The reporting requirements are relevant for financial institutions, depositories, mutual fund reporting entities and taxpayers who undertake securities-related investments.

What is Statement of Financial Transactions (SFT)?

Statement of Financial Transactions, commonly known as SFT, is a reporting mechanism through which specified financial transactions are furnished to the income tax authorities by prescribed reporting entities.

The information helps the tax administration track relevant financial transactions and improve the accuracy of information available for taxpayers’ tax return preparation.

Under the reported notifications, new SFT formats have been introduced for depository and mutual fund transactions.

1. SFT-2517 – Reporting of Depository Transactions

SFT-2517 relates to reporting of transactions and information maintained by depositories covered under the Depositories Act.

Who is required to report?

The format is reported by depositories covered under the Depositories Act.

What information does SFT-2517 cover?

The reported format covers relevant information such as:

• Demat account holders.
• Opening and closing values.
• Credits and debits.
• Initial Public Offering (IPO) credits.
• Corporate actions.
• Demat and remat transactions.
• Pledge and unpledge transactions.

Why is SFT-2517 important for taxpayers?

The information reported under SFT-2517 is intended to support the pre-filling of capital gains, income and losses arising from securities transactions in taxpayers’ Income Tax Returns.

Taxpayers should therefore ensure that their investment and securities-related records are properly maintained and reconciled with the information available in their tax statements.

2. SFT-2518 – Reporting of Mutual Fund Transactions

SFT-2518 relates to mutual fund transactions and is reported by prescribed mutual fund reporting entities.

Who is required to report?

As stated in the compliance alert, SFT-2518 is reported by SEBI-registered Registrar and Transfer Agents (RTAs), including registrar and share transfer agents.

What transactions are covered?

The format covers user-initiated transactions such as:

• Mutual fund purchases and investments.
• Debit and redemption transactions.
• Relevant mutual fund transaction information, excluding specified exchange-based transactions.
• Transaction values using the best available price, including redemption after adjusting for exit load where applicable.

How does SFT-2518 help taxpayers?

The reported information is intended to support the pre-filling of gains, income or losses relating to mutual fund transactions.

This may help taxpayers review their investment records and ensure that the information used for income tax return preparation is accurate.

3. Half-Yearly SFT Reporting Deadlines

The compliance alert provides the following reporting cycle for the new SFT formats:

Transactions during

SFT reporting deadline

1 April – 30 September

31 October

1 October – 31 March

30 April

The reporting entities should follow the applicable reporting requirements and prescribed procedures for the relevant period.

Important: The above deadlines are reproduced from the reported compliance alert. Reporting entities should verify the final statutory requirements and applicable notification before filing.

4. Who is Affected by the New SFT Reporting Formats?

The new reporting formats are relevant to the following categories:

Investors

Individuals investing in shares, mutual funds and other securities may be affected because transaction information can be used for pre-filling income tax return details.

Depositories

Depositories covered under the Depositories Act are relevant reporting entities for SFT-2517.

Mutual Fund Registrars and Transfer Agents

SEBI-registered RTAs and prescribed reporting entities are relevant for SFT-2518.

Individuals, HUFs, Firms and Companies

Taxpayers holding investments in securities should maintain proper records of their transactions and reconcile the information available in their tax statements.

5. What Should Taxpayers Do?

Although the reporting obligation primarily concerns prescribed reporting entities, taxpayers should take the following steps:

1. Review Securities-Related Transactions

Review share purchases, sales, mutual fund investments, redemptions and other securities-related transactions during the relevant financial year.

2. Reconcile AIS, TIS and Form 26AS

Compare the financial information available in:

• Annual Information Statement (AIS).
• Taxpayer Information Summary (TIS).
• Form 26AS.
• Demat and mutual fund statements.

3. Ensure Accurate ITR Disclosure

Check that capital gains, income and losses from securities and mutual fund transactions are correctly reported in the Income Tax Return.

4. Obtain Clarification Where Required

If there is a mismatch between your investment records and the information available in tax statements, contact the relevant financial institution or reporting entity for clarification.

5. Update Internal Compliance Processes

Reporting entities should review their internal systems and reporting processes to align with the applicable SFT reporting formats and prescribed requirements.

6. Why These Changes Matter

The introduction of SFT-2517 and SFT-2518 is aimed at improving the quality of financial transaction information available for income tax compliance.

For taxpayers, accurate financial records and reconciliation can help in:

• Reviewing investment-related income.
• Identifying discrepancies in reported transactions.
• Preparing accurate capital gains computations.
• Supporting correct income tax return filing.
• Improving transparency in financial transaction reporting.

For reporting entities, the new formats highlight the importance of maintaining reliable transaction data and following the prescribed reporting framework.

7. Key Takeaways

The key points from the reported CBDT compliance update are:

1. Two new SFT formats have been introduced: SFT-2517 and SFT-2518.
2. SFT-2517 relates to depository transactions.
3. SFT-2518 relates to mutual fund transactions.
4. The formats are intended to improve pre-filling of capital gains, income and losses in ITRs.
5. The reported SFT reporting cycle is half-yearly.
6. Taxpayers should reconcile their AIS, TIS, Form 26AS and investment statements.
7. Reporting entities should verify the official notification and applicable procedures before filing.

Conclusion

The reported introduction of SFT-2517 and SFT-2518 represents an important development in financial transaction reporting under the Income-tax Act, 2025.

Investors, depositories, mutual fund reporting entities and businesses should stay informed about the applicable reporting requirements. Proper reconciliation of investment records and tax statements can help taxpayers maintain accurate information for income tax return preparation.

BSA & Company – Chartered Accountants

Siliguri (Head Office) | Gangtok, Sikkim (Branch)

For professional assistance with income tax compliance, capital gains reporting, tax statement reconciliation and related advisory requirements, consult your Chartered Accountant.

For informational purposes only. Please refer to the official CBDT notification for complete details, applicable provisions, reporting procedures and technical guidelines.