Rule 160: Form 98 reporting of no-PAN declarations
Rule 160 requires the specified transaction recipients to report particulars of Form 97 declarations electronically in Form 98 and retain the declarations. Notification 120/2026 corrected the reporting cross-references in sub-rules (3) and (4), with deemed effect from 1 April 2026.
Official notified Income-tax Rules, 2026Need advice on Rule 160?
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Bare law
Rule 160 - Time and manner in which persons referred to in rule 159 shall furnish a statement containing particulars of Form No. 97
(1) Every person referred to in sub-rule (2), who has received any declaration in Form No. 97 in relation to a transaction specified in column 2 of the Table in rule 159, shall— (a) furnish a statement in Form No. 98 containing particulars of declaration to the Director of Income-tax (Intelligence and Criminal Investigation) or the Joint Director of Income-tax (Intelligence and Criminal Investigation) through online transmission of electronic data to a server designated for this purpose and obtain an acknowledgement number; and (b) retain Form No. 97 for a period of six years from the end of the financial year in which the transaction was undertaken.
(2)The persons referred to in sub-rule (1) shall be — (a) Sl. No. 11 or 12 or 13 or 14; and (b) Sl. No. 15 or 16 and who is required to get his accounts audited under section 58, of the column 4 of the Table in rule 159.
(3) The statement referred to in sub-rule (1)(a) shall,— (a) where the declarations are received by the 30th September, be furnished by the 31st October of that year; and (b) where the declarations are received by the 31st March, be furnished by the 30th April of the financial year immediately following the financial year in which the form is received.
(4) The statement referred to in sub-rule (1)(a) shall be verified— (a) in a case where the person furnishing the statement is an assessee as defined in section 2(11), by a person specified in section 265; (b) in any other case, by the person referred to in column (4) of the Table in rule 159.
Rule breakdown
Identify the recipient required to report
The rule selects the persons in Rule 159’s fourth column for rows 11–14. For rows 15–16, the stated reporting scope also requires that the person’s accounts be audited under section 58.
Receiving a declaration and being within this reporting rule are related but distinct questions. Check the recipient row and audit condition rather than assuming every person receiving any Form 97 has identical obligations.
Report particulars through Form 98
Transmit the statement electronically to the stated Intelligence and Criminal Investigation authority through the designated server and obtain an acknowledgment number.
Follow current official Systems instructions for the actual filing format and channel. Keep the statement and acknowledgment linked to the underlying declarations.
Track the two half-year reporting dates
For declarations received by 30 September, the statement is furnished by 31 October of that year. For declarations received by 31 March, it is furnished by 30 April of the immediately following financial year.
Maintain a receipt register so declarations are assigned to the correct reporting period and the corresponding deadline.
Retain Form 97 for six years from financial-year end
The retention clock starts from the end of the financial year in which the transaction was undertaken, not the date the statement happened to be filed.
For a transaction in a financial year ending 31 March 2027, the six-year period runs from that year-end. Preserve the declaration and supporting transaction linkage through the required period.
Use the correct verifier
Where the statement filer is the defined assessee, verification is by a person specified in section 265. In other cases it is by the person referred to in Rule 159’s fourth column.
The September amendment corrects the cross-reference to sub-rule (1)(a); it does not remove the verification requirement or substitute a new reporting form.
Key takeaways
Form 98 reports Form 97
The declaration and reporting statement are different documents.
31 October and 30 April
Use the relevant declaration-receipt period.
Six-year retention
Measure from the transaction financial-year end.
Current corrected references
Sub-rules (3) and (4) refer to (1)(a).
Practical checklist
- Check the recipient category and audit condition.
- Maintain declaration receipt and transaction dates.
- Retain acknowledgments and declarations.
- Use the current authorised filing instructions.
Avoid
- Do not confuse Form 97 and Form 98.
- Do not start retention only from the statement date.
FAQs
Is Form 98 the customer’s no-PAN declaration?
No. Form 97 is the declaration; Form 98 is the recipient’s statement of its particulars.
Does the six-year clock run from the filing date?
No. It runs from the end of the financial year in which the transaction was undertaken.
What did Notification 120/2026 change here?
It replaced the (i) cross-reference with (a) in sub-rules (3) and (4), deemed effective from 1 April 2026.
Glossary
- Form 98
- The statement containing particulars of the Form 97 declarations covered by this rule.