Forms 60 And 61 Exit; New Forms 97 And 98 Take Over

The Income Tax Department has replaced the familiar Forms 60 and 61 with two new declarations—Form 97 and Form 98, according to a recent post on X. The change applies to cases where financial transactions go through without a Permanent Account Number (PAN), something that still happens more often than one might assume.

For years, Forms 60 and 61 acted as a stopgap. If a person did not have a PAN but needed to complete a specified transaction, these forms filled the gap. That arrangement has now been retired, with the new forms stepping in.

What Has Changed On The Ground

The broad idea remains the same, but the way it is recorded is shifting.

Form 97 is meant for the individual who does not have a PAN but is going ahead with a transaction where a PAN would ordinarily be required. Instead of quoting PAN, the person submits this declaration.

The difference shows up on the other side. The entity receiving that declaration—typically a bank or another financial intermediary—now has to file Form 98. Earlier, institutions were expected to keep records of Forms 60 and 61. Now, they also have to formally report these declarations.

This effectively creates two points of record instead of one. The individual declares, and the institution reports.

More Paper Trail, Less Informality

The shift may not feel dramatic, but it quietly reduces the room for informal handling of such cases.

Under the earlier system, much depended on how diligently institutions maintained records. With Form 98, the expectation is less about storage and more about reporting. That changes the nature of the exercise.

Banks and other entities may need to tweak their internal processes, even if the change is not immediately visible to customers. For individuals, the experience of submitting a declaration may not feel very different—but what happens to that information afterwards will.

The larger pattern is hard to miss. Over time, the system has been moving towards tighter documentation, even in situations where PAN is absent.

What This Means For Taxpayers

For those who already quote PAN in their transactions, this update is unlikely to alter anything directly. The shift sits in the background.

But for individuals who still operate without a PAN, the trail they leave behind is becoming more defined. Each declaration now feeds into a system where both sides of the transaction are captured.

That does not make such transactions impossible—it simply makes them harder to keep outside a structured record.

There is also a behavioural nudge built into changes like this. When alternatives begin to involve more steps and clearer reporting, the incentive to move towards standard identification—such as obtaining a PAN—tends to increase.

From a compliance perspective, the message is straightforward. The space for loosely documented transactions is narrowing, not through abrupt changes, but through small adjustments like this one.

Replacing Forms 60 and 61 with Forms 97 and 98 may look like a routine update. In practice, it adds another layer to how financial activity is tracked, especially in cases that once operated with a degree of flexibility.