The Income Tax Department of India , under the Central Board of Direct Taxes (CBDT) , has officially introduced new simplified tax forms Form No. 97 and Form No. 98, replacing the long-standing Form No. 60 and Form No. 61 , effective April 1, 2026 . The move is part of a broader re-engineering effort under the Income-tax Act, 2025, aimed at reducing errors, disputes, and compliance costs for all stakeholders. Background: Why Were Forms Revamped? The Income Tax Department has introduced these simplified tax forms under the Income-tax Act, 2025, effective April 1, 2026, to improve ease of compliance for all stakeholders. The new forms use simpler language, standardised pre-filled formats, and technology-driven processes to reduce errors and disputes. Filing of these forms is expected to be reduced by approximately 80-85% from the current annual filing of around 12.5 crore. Who Should File? Form No. 97 (by Declarant) All persons who do not possess a Permanent Account Number (PAN) and enter into specified transactions under Rule 159 of the Income-tax Rules, 2026, are allowed to undertake such transactions without quoting PAN upon filing a declaration in Form No. 97. The following persons are either not allowed or not required to file Form No. 97: Persons NOT required to file Form 97 Central Government, State Governments, and Consular Offices Non-residents undertaking certain transactions A foreign company not having any taxable income in India can file Form No. 97 while opening a bank account or a time deposit with a banking unit in IFSC. Form No. 98 (by Reporting Entity) All persons (subject to conditions prescribed for certain transactions) who receive Form No. 97 declarations from persons undertaking any transaction specified in Rule 159 of the Income-tax Rules, 2026, are required to file Form No. 98. Periodicity of Filing Structure of New Form Nos. 97 and 98 Form No. 97 - Parts at a Glance Form No. 98 - Parts at a Glance Documents Required to File Form Nos. 97 and 98 Supporting documents for Proof of Identity , Proof of Address and Proof of Date of Birth/Incorporation are required for filing Form No. 97 by the declarant. The reporting entity only requires the details already captured in Form No. 97 for filing Form No. 98. Comparison: New Form 97 vs. Erstwhile Form 60 As a result of re-engineering, the following changes are made with respect to filing across each specified transaction: Transactions Removed from Rule 114B Framework Removed - No Longer Under Rule 114B / Form 97 Key Benefits of the New Simplified Forms Significant Reduction in Form No. 97 Filings The requirement to file Form No. 97 has been removed for a large number of transactions, substantially lowering the compliance requirement. The filing is expected to be reduced from 12.5 crore to less than 2 crore per year, a reduction of over 80%. What are the new income tax forms being introduced in India? When will the new income tax forms come into effect? Who is required to file Form No. 97? Who is required to file Form No. 98? What is the main goal of introducing these new forms? How significantly are the filings expected to reduce? Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms. Advance Ruling Under Income Tax Act 2025: Eligibility, Form 120, Fees and Procedure

Corporate Mitra Course Begins with 2,879 Learners in First Batch FEMA Amendment 2026: Inventory-Based E-Commerce Now Allowed for Indian Goods Exports Doctor Pays Rs 58 Crore in Tax on Rs 149 Crore Income, Sparks Debate Over Taxpayer Value Income from House Property Under Income Tax Act 2025 ICAI President Highlights Financial Literacy, Digital Finance and Global Opportunities for CAs Central Excise Notifications September 2026: Check Revised Duty Rates ICAI Responds to Social Media Posts, Clarifies Council Governance and Key Financial Matters Gross GST Revenue August 2026 Collections Grow 14.8%, Refunds Rise 67.9% MCA Extends CCFS-2026 Deadline to 15th September 2026 No Deduction of TDS Under IT Act 2025: Form 121 Rules for Individuals and Senior Citizens Maintenance of Books of Accounts Under Income Tax Act, 2025 Income Tax Refund Rules Under Income Tax Act, 2025: How to Claim Excess Tax Paid HUF Tax Rules 2026: New Tax Regime Slabs, Surcharge and Partition Provisions Income from House Property Under Income Tax Act 2025 Trending Online Classes Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27 CA Arvind Tuli Enroll Now Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27 Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27 CA Aarti Lahoti Enroll Now Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27 DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English CA Bhanwar Borana & CA Shubham Keswani Enroll Now DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English Browse by Category Info Technology Professional Resource Latest Job Openings K R Kiran Kumar & Associates A Jaiswal and company Aviv Global Pvt Ltd ANIVESH CONSULTANTS LLP CA ANOOP P K & ASSOCIATES Resollect Technologies Pvt Ltd YMW COMPLIANCE SERVICES LLP India's largest network for finance professionals