Income Tax Update: Form 97 & 98 Replace Form 60 & 61 | 2026 Rules

Major Change in Income Tax: Form 97 and 98 to Replace Form 60 and 61

Synopsis: As the Income Tax Act 2025 takes effect from April 1, 2026, the Indian tax landscape has evolved. This guide details the replacement of traditional non-PAN reporting forms (60 & 61) with the modernized Forms 97 and 98, ensuring taxpayers and institutions stay ahead of the digital compliance curve.

Did you know that a revolutionary change has hit income tax regulations as of April 1, 2026? With the implementation of the Income Tax Act, 2025, the department has retired several legacy forms, introducing simplified versions in their place.

The most significant update affects individuals who do not possess a PAN (Permanent Account Number). The old Forms 60 and 61 are now history, replaced by the new Forms 97 and 98.

1. Form 97: Your Alternative When You Don't Have a PAN

Replacing the old Form 60, Form 97 is now the standard document for individuals engaging in high-value financial transactions without a PAN card.

Who needs to fill it?

  • Individuals who have not yet been allotted a PAN.
  • Those opening a bank account, purchasing property, or investing over ₹50,000.
Important Note: If your income exceeds the taxable limit, it is mandatory to apply for a PAN in addition to submitting this form.

What information is required?

You must provide your name, address, Aadhaar number, and transaction details. It is a self-declaration confirming you do not hold a PAN.

2. Form 98: Responsibility of Reporting Entities

The former Form 61 has been rebranded as Form 98. This form is for banks and financial institutions, not the general public.

What is its purpose?

  • Data Collection: Institutions aggregate all Form 97 submissions to report them to the government.
  • Filing Frequency: This is a half-yearly statement.
  • Entities involved: Banks, Post Offices, and Registrars.

Why Was This Change Implemented?

The government aims to make the tax system more modern and digital. Under the Income Tax Rules, 2026, form numbering is now more logical, reducing confusion and streamlining the process for taxpayers.

Key Points to Remember

  • Avoid False Information: Incorrect details in Form 97 is a punishable offense under Section 482 of the new law.
  • Documents: Aadhaar Card or Voter ID must accompany the form as identity proof.
  • Deadline: Old forms were valid until March 31, 2026. Only 97 & 98 are accepted for the current financial year.

Conclusion

Tax compliance is now more transparent than ever. If you're planning a major investment without a PAN, ensure you use the new **Form 97** to stay legally compliant.