Rule 160 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
When a person who has no Permanent Account Number enters into certain transactions, rule 159 requires a declaration in Form 97. Rule 160 then tells the person who received that declaration to report it to the income-tax department in Form 98, to retain the Form 97 for six years, and to meet two fixed dates. Since March 2026 the cross-references inside sub-rules (3) and (4) have been corrected from "(i)" to "(a)".
This article is written as per the Income-tax Rules, 2026 (G.S.R. 198(E), notified on 20 March 2026), read with the amending notifications issued up to 22 September 2026. Later notifications should be checked before you act.
Persons who receive a Form 97 declaration for transactions in the Table in rule 159 must furnish a statement in Form 98 and keep Form 97 for six years from the end of the financial year in which the transaction was undertaken. Declarations received by 30 September are reported by 31 October of that year; declarations received by 31 March are reported by 30 April of the following financial year. Notification 120/2026 (G.S.R. 822(E), 17 September 2026), deemed in force from 1 April 2026, replaces "(i)" by "(a)" in sub-rules (3) and (4).
Banks, registrars, insurers and businesses that receive these declarations can ask our income tax return filing team how the dates apply to them.
What changed after March 2026
The Income-tax (Fourth Amendment) Rules, 2026 (G.S.R. 822(E), 17 September 2026) are made under section 533 read with sections 262, 273, 413, 514 and 515 of the Income-tax Act, 2025. Its rule 2 amends rule 160, and rules 2 to 4 of the notification are deemed to have come into force on the 1st day of April, 2026.
| Provision | As notified in March 2026 | After the amendment |
|---|---|---|
| Rule 160(3), opening words | "The statement referred to in sub-rule (1)(i)" | "The statement referred to in sub-rule (1)(a)" |
| Rule 160(4), opening words | "The statement referred to in sub-rule (1)(i)" | "The statement referred to in sub-rule (1)(a)" |
The change makes both sub-rules point to clause (a) of sub-rule (1), the clause that requires the Form 98 statement. The dates and the verification rule are not otherwise changed by the notification.
Where rule 160 comes from
The heading of rule 160 refers to the persons in rule 159, and rule 159 is made for section 262(1)(f) and 262(10)(c) and (e) of the Income-tax Act, 2025. Our article on section 262, Permanent Account Number explains the section, and our post on rule 159, transactions requiring a PAN explains the Table and Form 97.
In short, under rule 159(2)(b) a person who is not a company or a firm and has no Permanent Account Number must make a declaration in Form 97, giving the particulars of the transaction, when entering into the transactions at serial numbers 11 to 16 of the Table. A foreign company in certain banking transactions in an IFSC banking unit without a PAN or taxable income in India does the same under rule 159(2)(c).
Sub-rule (1): the statement and the retention period
Every person referred to in sub-rule (2) who has received a Form 97 declaration for a transaction in column 2 of the Table in rule 159 shall:
- (a) furnish a statement in Form 98 containing particulars of the 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 the purpose, and obtain an acknowledgement number; and
- (b) retain Form 97 for six years from the end of the financial year in which the transaction was undertaken.
Sub-rule (2): who must furnish
The persons are those in column 4 of the Table in rule 159 against:
- serial numbers 11, 12, 13 or 14: the registering officers for immovable property, the bank and similar officers for account opening and time deposits, and the insurer's manager or officer for starting an account-based relationship; and
- serial numbers 15 or 16, if the person is required to get accounts audited under section 58 (as the rule prints it): the person issuing the document, including the bill, for payments to hotels, restaurants and similar venues or for sale or purchase of goods and services.
If your business issues bills of the kind in the Table, and you are unsure whether you fall in clause (b), our books of accounts compliance team can help you check how the rule applies to your accounts.
Sub-rule (3): the two dates
| Declarations received | Statement to be furnished |
|---|---|
| By the 30th September | By the 31st October of that year |
| By the 31st March | By the 30th April of the financial year immediately following the financial year in which the form is received |
The rule prints these two windows only, and it says nothing about a date for declarations received on any other day. Where your own receipt dates do not sit neatly in either window, check the position before you rely on a date.
Sub-rule (4): verification
The statement is verified:
- where the person furnishing it is an assessee as defined in section 2(11), by a person specified in section 265; and
- in any other case, by the person referred to in column 4 of the Table in rule 159.
An example
Sunrise Sub-Registrar Office is a registering office for immovable property. A buyer who is an individual without a Permanent Account Number gives a declaration in Form 97 for a purchase at serial number 11 of the Table in rule 159. Because the declaration is received before 30 September, the office furnishes the Form 98 statement by 31 October of that year, obtains the acknowledgement number, and keeps the Form 97 for six years from the end of the financial year in which the purchase took place.
Need help with PAN-related declarations?
Wrong or missing reporting is easier to prevent than to fix. If you handle documents that carry Form 97 declarations, or you are unsure whether a declaration is needed for a transaction, our income tax return filing team can help.
Key takeaways
- Rule 160 requires a Form 98 statement from persons who receive Form 97 declarations.
- Form 97 is retained for six years from the end of the financial year of the transaction.
- Dates: 31 October for declarations received by 30 September; 30 April of the next financial year for those received by 31 March.
- Notification 120/2026 corrects "(i)" to "(a)" in sub-rules (3) and (4), from 1 April 2026.
- Verification depends on whether the person furnishing is an assessee under section 2(11).
Read next
- Rule 159: transactions requiring a PAN
- Rule 158: PAN application in Forms 93 to 96
- Rule 161: PAN for large cash movements
- Rule 157: persons exempt from obtaining a PAN
- Section 262: Permanent Account Number
Disclaimer: Based on the Income-tax Rules, 2026 (G.S.R. 198(E), notified on 20 March 2026), read with the amending notifications issued up to 22 September 2026, as consulted on 2 October 2026. It explains the words of the rules and forms only; later notifications, the forms and utilities on the e-filing portal, circulars and the way the tax authorities apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.