PAN now mandatory for big transactions: Form 97 route restricted; check new rules

From April 1, 2026, the Income Tax Act, 2025 and updated rules have made PAN essential for many financial transactions. Earlier, Form 60 could be used if you didn’t have a PAN. Now, it has been replaced by Form 97 with a more digital and simplified format, aiming to reduce errors and improve compliance.

Form 97 replaces the old Form 60 with a simpler, pre-filled and tech-enabled system. It reduces paperwork and makes filing easier. However, its usage is now limited as most high-value transactions require PAN directly, reducing dependency on alternative forms and increasing financial transparency.

Yes, PAN is mandatory for purchasing gold jewellery or any goods worth more than Rs 2 lakh. The new rules continue this requirement without any relaxation. High- value purchases remain under strict monitoring to ensure proper reporting and to curb tax evasion.

Under the new rules, PAN must be quoted for transactions over Rs 2 lakh. This includes goods and services purchases. The aim is to track large expenses and link them to individuals, ensuring better compliance and reducing the chances of unreported income.

You cannot use Form 97 for:
• Buying vehicles above Rs 5 lakh
• Applying for credit cards
• Opening demat accounts
• Investments above Rs 50,000 in mutual funds or bonds
These transactions now strictly require PAN for verification and compliance.

PAN is compulsory for major financial transactions such as:
• Cash deposits or withdrawals above Rs 10 lakh
• Buying or selling securities above Rs 1 lakh
• Transactions involving unlisted shares

These rules help authorities track large financial activities more effectively.

Certain transactions are no longer part of Form 97 reporting, including:
• Purchase of foreign currency
• Cash purchase of bank drafts or pay orders
• Prepaid payment instrument transactions
This simplifies compliance by removing low-risk or routine transactions from reporting requirements.

The new system focuses heavily on PAN-based tracking, limiting the use of alternative forms like Form 97. Most important financial activities now require PAN, making it a must-have for smooth banking, investing, and high-value purchases in India.