What Can a Person Without PAN Do? Form 97 and PAN Transaction Rules in 2026
A person who does not have a Permanent Account Number may still enter certain prescribed transactions by furnishing the declaration permitted under the Income-tax Rules, 2026. From April 1, 2026, the former Form No. 60 framework has been replaced by Form No. 97, while reporting of declarations is made through Form No. 98 under Rule 160.
Legal Basis for Transactions by Persons Without PAN
Section 262 of the Income-tax Act, 2025
Section 262 is the principal provision governing Permanent Account Number. It provides the statutory framework for allotment, quoting and use of PAN and authorises the prescription of transactions in which PAN must be quoted, authenticated or applied for.
Rule 159 of the Income-tax Rules, 2026
Rule 159 prescribes the transactions in relation to which PAN must be quoted or applied for. It also provides the circumstances in which an eligible person who does not have PAN may furnish Form No. 97 instead of quoting PAN.
Rule 160 of the Income-tax Rules, 2026
Rule 160 prescribes the time and manner in which specified persons receiving Form No. 97 must furnish a statement containing particulars of those declarations. The prescribed statement is Form No. 98. Rule 160 also requires retention of Form No. 97 for six years from the end of the financial year in which the transaction was undertaken.
Official Rule 159 Official Income-tax Rules, 2026
What is Form No. 97?
Form No. 97 is the current declaration prescribed for an eligible person who does not have PAN and enters into a transaction specified in Rule 159. The form requires particulars of the transaction and a declaration regarding PAN status and the applicant's relevant income and tax position.
Form No. 97 corresponds to old Form No. 60 under the Income-tax Rules, 1962. It is not a substitute for PAN in every situation; it may be used only where Rule 159 permits it.
Who Can Use Form No. 97?
Under Rule 159(2), a person other than a company or firm who does not have PAN and enters into specified transactions at serial numbers 11 to 16 of the Rule 159 table may furnish Form No. 97, subject to the detailed conditions of the rule.
| Rule 159 category | Transaction | Relevant threshold or condition |
|---|---|---|
| Sl. No. 11 | Purchase, sale, gift or joint development agreement involving immovable property. | Rule 159 applies where the amount exceeds Rs. 20,00,000 or the stamp valuation exceeds Rs. 20,00,000. Separate PAN-application rules apply in higher-value cases as prescribed. |
| Sl. No. 12 | Opening specified bank accounts. | Applies to accounts covered by Rule 159, excluding the specific exceptions stated in the rule. |
| Sl. No. 13 | Time deposits with specified institutions. | Amount exceeding Rs. 50,000 or aggregating to more than Rs. 5,00,000 in a financial year. |
| Sl. No. 14 | Commencement of an account-based relationship with an insurer. | Where insurance premium exceeds Rs. 50,000 during a financial year. |
| Sl. No. 15 | Cash payment to hotel, restaurant, convention centre, banquet hall or event manager. | Cash payment exceeding Rs. 1,00,000 against one bill or bills at one time. |
| Sl. No. 16 | Sale or purchase of goods or services not otherwise covered by Sl. Nos. 1 to 15. | Amount exceeding Rs. 2,00,000 per transaction. |
When Form No. 97 Cannot Simply Replace PAN
Form No. 97 is not available as a universal alternative to obtaining PAN. For transactions falling within serial numbers 1 to 10 of Rule 159, a person without PAN may be required to apply for PAN before entering into the transaction.
Rule 159 also contains a separate PAN-application requirement for certain immovable-property transactions where the amount or stamp valuation exceeds Rs. 45,00,000, subject to the specific exceptions provided in the rule.
Accordingly, a person should first identify the applicable Rule 159 transaction and threshold before deciding whether Form No. 97 may be used or whether PAN must be obtained.
See transactions for which quoting PAN is mandatory.
What is Form No. 98?
Form No. 98 is not a declaration by the non-PAN holder. It is the statement containing particulars of Form No. 97 declarations that specified recipients must furnish under Rule 160.
Rule 160 requires the relevant recipient to:
- furnish Form No. 98 electronically to the prescribed Income Tax Department authority;
- obtain an acknowledgement number; and
- retain Form No. 97 for six years from the end of the financial year in which the transaction was undertaken.
Information and Documents Required with Form No. 97
Form No. 97 requires the declarant to provide the particulars prescribed in the form, including the nature of the transaction, status of the declarant, relevant income details and identification particulars. The declaration must be completed accurately and supported by the information or documents required by the form and the person receiving the declaration.
The earlier page listed ration card, passport, driving licence, identity card, electricity bill and telephone bill as proof of residence. Current filing should instead follow the exact identification and documentary requirements stated in Form No. 97 and the applicable official procedure, since documentary requirements may differ according to the transaction and declarant.
Special Rule for a Minor Without PAN
Under Rule 159, where a minor has no income chargeable to tax and enters into a specified transaction, the PAN of the father, mother or guardian, as the case may be, is to be quoted in the document relating to that transaction.
Should a Person Apply for PAN Instead?
If the person is independently required to obtain PAN under section 262 and Rule 158, Form No. 97 should not be treated as a way to avoid the PAN requirement. The person should apply for PAN within the prescribed time.
For further guidance, see who is liable to obtain PAN and how to apply for PAN and documents required.
Frequently Asked Questions
Is Form No. 60 still used for current PAN transactions?
For transactions governed by the Income-tax Rules, 2026 from April 1, 2026, the corresponding declaration is Form No. 97. Form No. 60 is the old form number under the earlier rules.
What is the current equivalent of old Form No. 61?
Form No. 98 is the current statement containing particulars of declarations received in Form No. 97 and corresponds to old Form No. 61.
Can a company use Form No. 97?
Rule 159 generally permits Form No. 97 for a person other than a company or firm in the specified circumstances. A limited exception exists for a qualifying foreign company entering specified transactions with an IFSC banking unit, subject to the rule.
Can a firm use Form No. 97?
No, the general declaration facility in Rule 159(2)(b) is for a person other than a company or firm.
Can a person use Form No. 97 for every property transaction?
No. The availability of Form No. 97 depends on the transaction value and the detailed provisions of Rule 159. Certain higher-value immovable-property transactions require a PAN application rather than merely a declaration.
How long must Form No. 97 be retained?
Rule 160 requires the specified recipient to retain Form No. 97 for six years from the end of the financial year in which the transaction was undertaken.
Where can I check the complete PAN transaction thresholds?
See PAN mandatory transactions and current monetary limits.
Where can I check whether I must obtain PAN?
See persons liable to obtain PAN.
Last updated: September 6, 2026. PAN forms, monetary limits and reporting procedures may be amended. Verify the current Income-tax Act, Income-tax Rules and official Income Tax Department instructions before entering into a transaction without PAN.