The Income Tax Department of India, under the Central Board of Direct Taxes (CBDT), has officially introduced new simplified tax forms Form No. 97 and Form No. 98, replacing the long-standing Form No. 60 and Form No. 61, effective April 1, 2026. The move is part of a broader re-engineering effort under the Income-tax Act, 2025, aimed at reducing errors, disputes, and compliance costs for all stakeholders.
Background: Why Were Forms Revamped?
The Income Tax Department has introduced these simplified tax forms under the Income-tax Act, 2025, effective April 1, 2026, to improve ease of compliance for all stakeholders. The new forms use simpler language, standardised pre-filled formats, and technology-driven processes to reduce errors and disputes. Filing of these forms is expected to be reduced by approximately 80-85% from the current annual filing of around 12.5 crore.
Who Should File?
Form No. 97 (by Declarant)
All persons who do not possess a Permanent Account Number (PAN) and enter into specified transactions under Rule 159 of the Income-tax Rules, 2026, are allowed to undertake such transactions without quoting PAN upon filing a declaration in Form No. 97. The following persons are either not allowed or not required to file Form No. 97:
Persons NOT required to file Form 97
- Firms
- Companies
- Central Government, State Governments, and Consular Offices
- Non-residents undertaking certain transactions
A foreign company not having any taxable income in India can file Form No. 97 while opening a bank account or a time deposit with a banking unit in IFSC.
Form No. 98 (by Reporting Entity)
All persons (subject to conditions prescribed for certain transactions) who receive Form No. 97 declarations from persons undertaking any transaction specified in Rule 159 of the Income-tax Rules, 2026, are required to file Form No. 98.
Periodicity of Filing
| Form Number | Filed By | Period | Due Date for Filing |
|---|---|---|---|
| Form 97 | Declarant | Not Applicable | At the time of undertaking the specified transaction |
| Form 98 | Reporting Entity | Declarations received during April - September | 31st October of the tax year |
| Form 98 | Reporting Entity | Declarations received during October - March | 30th April of the next tax year |
Structure of New Form Nos. 97 and 98
Form No. 97 - Parts at a Glance
| Part | Content |
|---|---|
| Part A | Nature of transaction being undertaken |
| Part B | Non-PAN declaration |
| Part C | Identity and address details of the declarant |
| Part D | Details of transaction |
| Part E | Details of documents submitted as identity / address / date of birth (DOB) / date of incorporation (DOI) proof |
| Part F | Verification of the information |
Form No. 98 - Parts at a Glance
| Part | Content |
|---|---|
| Part A | Details of the reporting person, statement and principal officer of the reporting entity |
| Part B | Report number, details of person, financial transaction and documents produced by the person as identity/address / DOB / DOI proof |
Documents Required to File Form Nos. 97 and 98
Supporting documents for Proof of Identity, Proof of Address and Proof of Date of Birth/Incorporation are required for filing Form No. 97 by the declarant. The reporting entity only requires the details already captured in Form No. 97 for filing Form No. 98.
Comparison: New Form 97 vs. Erstwhile Form 60
As a result of re-engineering, the following changes are made with respect to filing across each specified transaction:
| S.No. | Nature of Transaction (Rule 159) | PAN Mandatory? | Filing of Form No. 97 |
|---|---|---|---|
| 1 | Sale/purchase of motor vehicle (above Rs 5 lakhs) | Yes | Filing not allowed |
| 2 | Opening of bank account | No | Yes |
| 3 | Application for credit card | Yes | Filing not allowed |
| 4 | Opening a demat account | Yes | Filing not allowed |
| 5 | Payment to hotel/restaurant/community centre/banquet hall — cash exceeding Rs 1,00,000 | No | Yes |
| 6 | Purchase of Mutual Fund (above Rs 50,000) | Yes | Filing not allowed |
| 7 | Purchase of debentures/bonds from a company (above Rs 50,000) | Yes | Filing not allowed |
| 8 | Purchase of bonds from RBI (above Rs 50,000) | Yes | Filing not allowed |
| 9 | Cash deposit and withdrawal in bank account (exceeding Rs 10 lakhs) | Yes | Filing not allowed |
| 10 | Time deposit with bank | No | Yes |
| 11 | Commencement of account-based relationship with insurer (excluding where insurance premium is less than Rs 50,000) | No | Yes |
| 12 | Contract for sale or purchase of securities (above Rs 1 lakh per transaction) | Yes | Filing not allowed |
| 13 | Sale or purchase of unlisted shares (above Rs 1 lakh per transaction) | Yes | Filing not allowed |
| 14 | Sale/purchase of immovable property (above Rs 20 lakhs) | No (below Rs 45 lakhs) | Yes |
| 15 | Sale/purchase of other goods/services (above Rs 2,00,000 per transaction) | No | Yes |
Transactions Removed from Rule 114B Framework
Removed - No Longer Under Rule 114B / Form 97
| 1 | Payment for purchase of foreign currency |
| 2 | Purchase of bank draft in cash |
| 3 | Payment for purchase of PPF (Public Provident Fund) |
Key Benefits of the New Simplified Forms
| S.No. | Key Feature | Benefit to Stakeholders |
|---|---|---|
| 1 | In some transactions the threshold limit has been increased, making PAN quoting mandatory; consequently Form No. 97 is now required for six transactions only | Reduced reporting and eased compliance requirement for taxpayers and reporting entities |
| 2 | Details of supporting documents (Proof of Identity, Proof of Address, Proof of Date of Birth/Incorporation) to be filed in revised new Form Nos. 97 and 98 | Verification ensures authenticity, leading to transparency and enhanced quality of information |
| 3 | Inclusion of supporting documents such as Proof of Identity, Proof of Address, and Proof of Date of Birth/Incorporation in revised Form Nos. 97 and 98 | Ensures more accurate and verifiable information (enhanced data completeness and reliability) |
Significant Reduction in Form No. 97 Filings
The requirement to file Form No. 97 has been removed for a large number of transactions, substantially lowering the compliance requirement. The filing is expected to be reduced from 12.5 crore to less than 2 crore per year, a reduction of over 80%.
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