Now Reading: CBDT introduces new reporting rule for high-value transactions without PAN
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CBDT introduces new reporting rule for high-value transactions without PAN
CBDT introduces new reporting rule for high-value transactions without PAN
The Central Board of Direct Taxes (CBDT) has introduced a new system for reporting high-value financial transactions where a person does not have a Permanent Account Number (PAN). Under a notification issued…
The Central Board of Direct Taxes (CBDT) has introduced a new system for reporting high-value financial transactions where a person does not have a Permanent Account Number (PAN). Under a notification issued on Tuesday, banks, financial institutions and other specified entities must now register with the Income Tax Department and obtain a unique number called ITDREIN before submitting Form 98 to report such transactions.
A person without PAN can submit a declaration in Form 97 instead, where the rules allow. The reporting organisation must then record and submit those details through the new system. The notification also allows for corrections and deletion of mistaken reports. For FY 2025-26 and earlier years, the old system using Form 61 will continue.
The move aims to help the tax department track high-value transactions where PAN is not available. Tax expert Abhishek A Rastogi said the link between Form 97 and Form 98 is important for banks and financial institutions handling such transactions.
Indian Opinion Analysis
The new system closes a long-standing data gap for the Income Tax Department. Under the old rule, a person without PAN could still execute a high-value transaction, but the reporting chain was less structured, making it harder to link the declarant to the transaction. The CBDT notification now creates a unique identifier (ITDREIN) for each reporting entity, which allows the tax department to track every Form 97 submission and the corresponding Form 98 report in a centralised database. For the average person, the change matters only if they do not have a PAN and attempt a transaction above Rs 50,000 in cash, Rs 2.5 lakh in mutual funds, or Rs 30 lakh in property purchases.
The CBDT notification now creates a unique identifier for each reporting entity, which allows the tax department to track every Form 97 submission and the corresponding Form 98 report in a centralised database.
Source: thefederal.com
This brief was synthesised by AI from the source linked above.
