The Indian government has called on reporting entities to ensure the timely and accurate filing of Statements of Financial Transactions (SFTs) before the May 31 deadline for FY 2025–26. Officials from the Central Board of Direct Taxes (CBDT) have warned that poor-quality filings could lead to unnecessary complications for taxpayers and diminish the effectiveness of the data-driven tax system. Common errors flagged include incorrect or missing Permanent Account Number (PAN) details, duplicate transaction reporting, and inaccuracies in transaction values, particularly in joint accounts. These issues can result in mismatches in the Annual Information Statement (AIS), causing confusion and compliance follow-ups for taxpayers. To mitigate these problems, the government urges entities, including banks and mutual funds, to enhance their internal validation processes, verify PANs, and reconcile transaction data before submission. Timely filing and regular quality checks are also deemed crucial. CBDT officials stress that accurate SFT reporting is essential for fostering a transparent compliance environment, with ongoing engagement initiatives aimed at reducing errors and enhancing data quality.