Key Takeaways

  • Form 97 is used for certain specified transactions when a person does not possess PAN.
  • It replaces Form 60 under the new tax framework.
  • Form 97 applies only to transactions covered under Rule 159(2) of the Income Tax Rules, 2026.
  • It does not replace PAN requirements for every financial transaction.
  • The institution receiving Form 97 may have to report it through Form 98.
  • Providing incorrect information can lead to reporting and legal problems.

What Is Form 97?

Form 97 is a declaration used by a person who does not possess a Permanent Account Number for certain specified transactions.

It has been introduced under the Income Tax Act, 2025 and the Income Tax Rules, 2026.

Form 97 replaces Form 60 for applicable fresh transactions under the new tax framework.

    However, Form 97 is not a general alternative to PAN. It can be used only when:
  • The person does not possess PAN
  • The transaction is covered by the applicable rules
  • The law permits a declaration instead of PAN
  • The required identity and income details are provided

What Was Form 60?

Under the earlier income-tax framework, a person who did not have PAN could submit Form 60 for certain specified transactions.

From 1 April 2026, Form 97 is used for the applicable transactions covered under the new rules.

The purpose remains similar: the government and reporting institution receive identity and financial information even when the person does not have PAN.

Form 97 vs Form 60

Form 60

  • Used under the earlier Income Tax Act
  • Applied to specified PAN-less transactions
  • Recipient reporting was linked with Form 61

Form 97

  • Used under the Income Tax Act, 2025
  • Applies to specified transactions under the new rules
  • Recipient reporting is linked with Form 98
  • Used for fresh applications and transactions covered under the new framework

The change in form number does not remove the taxpayer’s responsibility to provide accurate information.

When May Form 97 Be Required?

Form 97 may apply to specified transactions listed under Rule 159(2) of the Income Tax Rules, 2026.

    Examples may include:
  • Purchase or sale of immovable property
  • Opening certain bank or financial accounts
  • Investment in a time deposit
  • Starting an account-based relationship with an insurer
  • Certain hotel or restaurant payments
  • Certain event-management payments
  • Purchase or sale of specified goods or services

These are examples only. Form 97 is not required for every large transaction.

The exact threshold and applicability depend on the transaction type and the relevant provision of the tax rules.

Does Form 97 Replace PAN?

No. Form 97 does not replace PAN permanently.

If you are required to obtain PAN, you should apply for it. Form 97 is intended for specified situations in which a person does not possess PAN and the rules allow a declaration.

    You should not use Form 97 to:
  • Avoid applying for PAN
  • Hide income
  • Conceal a financial transaction
  • Avoid tax reporting
  • Provide false identity details
  • Bypass KYC requirements

A bank, insurer or other institution may reject the form if the declaration does not meet the legal conditions.

What Information Is Required in Form 97?

    The form may require details such as:
  • Full legal name
  • Date of birth
  • Address
  • Mobile number
  • Email address
  • Identity documents
  • Estimated total income
  • Transaction value
  • Cash amount involved
  • Payment method
  • Details of the receiving institution
    The recognised payment modes may include:
  • Cash
  • Cheque
  • Card
  • Bank draft
  • Online transfer
  • UPI
  • Other permitted modes

Always provide information that is correct and supported by documents.

What Does the Receiving Institution Do?

The bank, insurer, merchant or other receiving institution may verify the information provided in Form 97.

    It may record:
  • Date of the transaction
  • Transaction amount
  • Cash component
  • Payment method
  • Identity details
  • Reference number
  • Supporting documents

The institution may also have a reporting obligation under the Income Tax Rules, 2026.

    The customer should keep a copy of:
  • Completed Form 97
  • Identity proof
  • Address proof
  • Transaction receipt
  • Agreement or application
  • Bank statement
  • Confirmation received from the institution

What Is Form 98?

Form 98 is the reporting form used by the institution or person receiving Form 97 declarations.

The receiving institution may need to submit a half-yearly statement to the Income Tax Department containing details of declarations received.

The individual who submits Form 97 generally does not file Form 98 personally.

This means Form 97 becomes part of the institution’s tax and financial reporting records.

Is Form 97 Required for Every High-Value Transaction?

No.

The phrase “high-value transaction” does not automatically mean that Form 97 is required.

    Before submitting the form, check:
  • The type of transaction
  • The applicable threshold
  • Whether the person has PAN
  • Whether Rule 159(2) applies
  • Whether the bank or institution has requested the form
  • Whether the transaction is covered by another reporting provision

If you already have PAN, quote it wherever required instead of using Form 97 unnecessarily.

Common Mistakes to Avoid

Using Form 60 After the New Rules Apply

For fresh transactions covered under the new framework, check whether Form 97 is required instead of Form 60.

Treating Form 97 as a Permanent PAN Alternative

Form 97 is only a declaration for specified situations. It does not cancel the requirement to obtain PAN.

Giving Incorrect Income Details

Do not understate your income to make the form easier to accept.

Reporting the Wrong Transaction Amount

The total transaction value and cash component should be stated correctly.

Assuming UPI Payments Are Unreported

Digital payments, including UPI transactions, may appear in financial and tax records.

Submitting the Form Without Keeping a Copy

Always retain a signed copy and the related payment documents.

Assuming Form 97 Removes Tax Liability

Form 97 is only an identification and reporting mechanism. It does not remove any applicable tax liability.

Safety Checklist Before Submitting Form 97

    Before submitting Form 97:
  • Confirm that you genuinely do not possess PAN.
  • Check whether the transaction is covered by Rule 159(2).
  • Use your full legal name.
  • Provide the correct date of birth.
  • Report your actual estimated income.
  • Mention the correct transaction amount.
  • Report the cash component accurately.
  • Attach valid identity and address proof.
  • Keep a signed copy.
  • Ask the receiving institution for confirmation.
  • Consult a tax professional if the transaction involves property, business or a large amount.

Frequently Asked Questions

Q: What is the difference between Form 97 and Form 60?
Form 97 is the new declaration under the Income Tax Act, 2025. It replaces Form 60 for specified transactions covered under the new tax rules.
Q: From when is Form 97 applicable?
The new forms apply to fresh applications and applicable transactions under the new framework from 1 April 2026.
Q: Is Form 97 required for every person without PAN?
No. It applies only to specified transactions where the law permits a declaration instead of PAN.
Q: Can Form 97 be used instead of PAN everywhere?
No. It is not a permanent replacement for PAN.
Q: Who files Form 98?
The bank, insurer, merchant or other receiving institution may need to file Form 98. The individual submitting Form 97 generally does not file Form 98 personally.
Q: Does Form 97 cancel tax liability?
No. It only records identity and transaction information. Any applicable tax must still be calculated and paid.
Q: What happens if I provide false information?
The form may be rejected, and incorrect information may lead to reporting issues, penalties or other legal consequences.

Conclusion

Form 97 is part of the transition to the new income-tax framework in India.

It replaces Form 60 for specified PAN-less transactions under Rule 159(2) of the Income Tax Rules, 2026. However, it does not allow taxpayers to avoid PAN requirements or hide financial activity.

If you do not have PAN and need to complete a covered transaction, provide accurate information and retain all supporting documents. For property purchases, business transactions or major investments, professional tax advice can help prevent future problems.