New Forms 97 and 98 Replace Outdated Forms 60 and 61

Key Insights 

1. The introduction of Form No. 97 and Form No. 98 by the CBDT comes with a significant shift in the tax filing process with the aim of reducing errors under the new Income Tax Act, 2025.

2. This industry is projected to cut annual tax filings from 12.5 crore to under 2 crore. This simplifies the process for millions of Indians.

CBDT Launches Simplified Forms 97 and 98 Under the New Income Tax Act, 2025

The new forms under the new Income Tax Act 2025 are written in simpler language, use easy pre-filled formats, and use easy-to-use technology to help reduce mistakes and disputes. 

If anyone without a PAN who takes part in certain transactions under Rule 159 of the Income Tax Rules, 2026, must now file Form No. 97. 

If any commodities receive these declarations, then they need to submit Form No. 98 as a half-yearly statement to the Income Tax Department.

Forms 60 and 61 were useful for 60 years, but over time, the paperwork became too much to handle

Form 60 was for people who did not have a PAN but needed to do things like open a bank account or buy property, as required by Rule 114B of the Income Tax Act, 1961. 

Financial Institutions used Form 61 to send details of these transactions to the Income Tax Department. The process eventually became too hard to manage.

India’s Taxpayers Finally Receive Long-Awaited Relief

Imagine you are a farmer opening a fixed deposit, a first-time property or home buyer, or someone from a rural area visiting a bank without a PAN card. 

Then, what can you do because a PAN Card is the most important thing if you want to do a financial transaction in India?

These are the people who have depended on Forms 60 and 61 for years, and they are the ones who face confusion and delays because of the paperwork mistakes. 

The Income Tax Act, 2025, is a simple way to rewrite the old 1961 law. 

It keeps the same legal ideas and policy goals but reduces the number of sections from 819 to a clear, step-by-step 536 and the total number of forms from 399 to 190. 

In the short term, some confusion comes from the bank side, as people will still ask for “Form 60” because they are now used to it.  

But over time, this new Act or Form will make financial transactions simple for those who don’t want to waste their time with complicated paperwork.

Forms 97 and 98: Millions of Indians will never have to fill out these forms again

Now, India’s paperwork is simple, and people in rural areas will benefit the most.
 

This information helps you to get the difference between being refused service at the bank and successfully completing your transaction.

Conclusion

India has changed with the scale of its financial activity, and the introduction of Forms 97 and 98 is more than just a change in numbers.