IT Deptt swoops pvt company in Akola, finds Rs 1.20 cr dividend unreported

 

 

The Intelligence and Criminal Investigation Wing (ICIW) of the Income Tax (IT) Department, Nagpur Zone, conducted a survey at a private company in Akola recently, as it had failed to report Rs 1.20 crore dividend, as required under the Statement of Financial Transactions (SFT) filing. The action followed the non-visibility of SFT-15 data related to dividend income. During the course of the survey which went on till late night a few days back, the absence of this reporting formed the central trigger for the survey, sources indicated. SFT is a statutory reporting mechanism under the IT Act through which specified high-value and financially significant transactions are disclosed to the tax authorities. Filed annually in Form 61A, SFT enables the tax system to independently track transactions and cross-verify them with income declared by taxpayers.

 

Dividend income is specifically covered under SFT-15, which places the reporting obligation on companies distributing dividends. The requirement is designed to ensure that dividend pay outs are visible to the tax system for verification, analytics, and pre-filling of taxpayer records. This action also fits into a broader regional compliance narrative that has unfolded across Vidarbha, including Nagpur district recently. In recent months, the Income Tax Department has intensified scrutiny of SFT filings across sectors, particularly where mandatory data is found missing or partially reported. Nagpur has seen multiple instances where property transactions required to be reported by sub-registrar offices did not fully reflect in SFT data, prompting departmental intervention. Similar attention has been directed at banking channels for cash-related SFT reporting.

 

Within this evolving framework, the focus has shifted from isolated tax assessments to the integrity of the data ecosystem that feeds the tax administration. The department has repeatedly emphasised that SFT is not a procedural formality but a critical pillar of information-led compliance. Missing or inaccurate SFT data can distort the pre-filling of returns, weaken analytics-based risk assessment, and undermine transparency in financial reporting. Dividend reporting under SFT-15 follows the same principle that applies to other transaction categories. Just as property registration data reported by sub-registrar offices under SFT enables visibility of high-value real estate transactions, and banking SFT codes track substantial cash deposits and withdrawals, SFT-15 exists to ensure that dividend distributions made by companies are systematically reported and traceable.

 

First such survey in country The Akola survey is being viewed in official circles as a significant development because it places dividend reporting, an area traditionally perceived as routine corporate compliance, squarely within the enforcement lens. Sources described the exercise as the first of its kind survey in the country to be driven primarily by gaps in SFT-15 dividend visibility.