Banks share more data with the Income Tax Department than most people realise. P2P traders sit at the intersection of multiple reporting streams — knowing what's reported is the first step to staying compliant.
Statement of Financial Transactions (SFT)
Banks file SFT 003 with the IT Department reporting cash deposits >₹10 lakh in a year, time deposits >₹10 lakh, credit card payments >₹1 lakh in cash or ₹10 lakh otherwise, and several other thresholds.
These rolled-up totals appear in your AIS (Annual Information Statement). The IT Department sees them every year.
Suspicious Transaction Reports (STR)
Filed independently by banks and exchanges to FIU-IND. Not part of routine SFT but flows separately to investigation databases.
Form 26AS / TDS reporting
Every TDS deduction (1% under 194S, others) flows directly to your PAN's Form 26AS. Visible to the IT Department in real time.
What to do
Assume the IT Department sees your major transactions. File ITR with all VDA income declared. Reconcile your Schedule VDA against AIS — they should agree.
Key takeaways
- SFT, AIS, 26AS, and STR are four parallel reporting streams.
- Large transactions are visible to IT Department before you file.
- Reconcile Schedule VDA with AIS — mismatches auto-flag.
- Compliance is the only sustainable strategy in 2026.
