With the deadline of May 31, 2026, approaching, the Central Board of Direct Taxes (CBDT) is urging banks, cooperative banks, mutual funds, and other specified institutions to file Statements of Financial Transactions (SFTs) accurately and on time. These SFTs are required under the Income-tax law to report high-value transactions, including interest payments, dividends, and property transactions. The information collected is crucial for the Annual Information Statement (AIS), which simplifies the income tax filing process by providing taxpayers with a consolidated view of transactions linked to their Permanent Account Number (PAN). CBDT officials noted that the quality of information reported is vital, as even minor errors can lead to significant issues for taxpayers. Common mistakes include incorrect PAN details, duplicate reporting, and inaccurate transaction values. The CBDT has advised entities to validate their PAN information and conduct internal reconciliations to ensure compliance. As India transitions to a more digital and transparent tax administration, accurate SFT reporting is increasingly important for enhancing taxpayer experience and supporting voluntary compliance.