New CBDT Rule for PAN Cards: Stay Alert Before Transactions

Information regarding high-value purchases—such as property or gold—will now reach the tax department even if a PAN card is not used. The CBDT's new reporting mechanism has been in effect since September 15. Banks and registrars are required to provide this information through a prescribed procedure.

If you do not possess a PAN card but plan to purchase high-value items like property or gold, this information is relevant to you. Not having a PAN card does not mean that details of such transactions will escape the Income Tax Department's notice. A new system has been implemented under the latest income tax rules to report specific transactions conducted without a PAN.

The CBDT issued a notification regarding this on September 15, 2026. Under the Income-tax Rules 2026, individuals without a PAN are required to submit a declaration using Form 97. Subsequently, the bank, registrar, or other reporting entity receiving this information must report it to the Income Tax Department via Form 98.

What to do if you don't have a PAN?

If you do not have a PAN card but wish to carry out specified transactions, you can use Form 97. In this form, you may be required to provide details regarding your identity, address, and other necessary information. According to the Income Tax Department, Form 97 replaces the older Form 60 under the new rules.

What happens with Form 98?

Under Rule 160 of the Income-tax Rules 2026, once Form 97 is received, the concerned reporting entity must electronically transmit the information to the ITDREIN (Income Tax Department Reporting Entity Identification Number) system using Form 98. The data will be transmitted to a designated server, and the reporting entity will receive an acknowledgement number.

Now, regarding the registration and reporting process associated with Form 98, the CBDT has...
Notification No. It was issued on September 15, 2026. The Income Tax Department has also incorporated this into its latest updates.

What is the deadline for reporting Form 98?

The new rules also specify deadlines for reporting Form 98.
Information regarding declarations received by September 30 must be submitted by October 31.
Information regarding declarations received by March 31 must be filed by April 30 of the following financial year.