New Income Tax SFT-2517 Reporting Rules for Depository Transactions: Key Compliance Requirements for 2026 

Notification No. 1 of 2026 prescribes the format, procedure and guidelines for furnishing SFT-2517 in respect of depository transactions under section 508(1) of the Income-tax Act, 2025 read with Rule 237(6) of the Income-tax Rules, 2026. The framework is intended, among other things, to provide information relating to capital gains on transfers of listed securities and units of mutual funds for pre-filling income-tax returns. All depositories are required to prepare the prescribed data files from their internal systems and submit them through the designated SFT platform.  

The SFT is to be furnished on a half-yearly basis, with the first-half statement due by 31 October and the second-half statement by 30 April. The guidelines provide for reporting of user-initiated debit transactions in demat accounts, calculation of estimated sale consideration using the weighted average price, classification of securities and determination of holding period using the FIFO method. Reporting entities must also provide the reported information to account holders to facilitate reconciliation with the Annual Information Statement, and correction or deletion statements are prescribed for inaccurate reports.

Last Updated on 9 October, 2026