Kamal Ghorui
If you are planning to buy gold jewellery worth more than Rs 2 lakh or open a demat account without a PAN, the new income tax framework has an important update for you. From April 1, old Form 60 has been replaced by Form 97, but PAN remains compulsory for several high-value purchases and financial transactions.The change comes under the Income Tax Act, 2025 read with the Income Tax Rules, 2026. The government has also replaced old Form 61 with Form 98 as part of a wider compliance overhaul aimed at making declarations simpler, faster and more technology-driven, according to an ET report.The Income Tax Department has said the redesigned forms use simpler language, standardised pre-filled formats and digital processes to reduce disputes and filing errors. It expects annual filings under these forms to fall by 80-85 per cent from around 12.5 crore currently.
Buying gold above Rs 2 lakh? PAN still compulsory
Chartered Accountant Suresh Surana said the new rules continue the requirement of quoting PAN for specified transactions.Under Rule 159 of the Income-tax Rules, 2026, which corresponds to the earlier Rule 114B, sale or purchase of goods or services above Rs 2 lakh per transaction continues to fall within the reporting net.“Accordingly, transactions like purchase of gold jewellery would continue to be included within its ambit,” Surana said, ET quoted.“Although the updated rules reflect a broader intent to rationalise compliance and reduce reporting for routine and lower-value transactions, there is no specific amendment affecting high-value purchases of goods, including jewellery.”“As such, the requirement to quote PAN for transactions above Rs 2 lakh remains applicable under the current framework,” he added.
Where Form 97 will not work now
The compliance system has shifted more sharply towards PAN-based verification, meaning Form 97 cannot be used in several transactions.According to Surana, PAN is mandatory for:
- Purchase of motor vehicles above Rs 5 lakh
- Credit card applications
- Opening demat accounts
- Mutual fund, debenture and bond investments above Rs 50,000, including RBI bonds
- Cash deposits or withdrawals above Rs 10 lakh
- Purchase or sale of securities above Rs 1 lakh per transaction
- Purchase or sale of unlisted shares above Rs 1 lakh per transaction
- Transactions removed from reporting list
Surana said some transactions have been taken out of the Form 97 reporting framework altogether:
- Purchase of foreign currency
- Cash purchase of bank drafts, pay orders or banker’s cheques
- Transactions involving prepaid payment instruments (PPIs)
What this means for taxpayers
While Form 97 replaces Form 60, it is now meant for fewer cases. For most major banking, investment and high-value purchase transactions, PAN has become the primary requirement. Buyers planning jewellery, securities or financial investments may need to ensure PAN details are ready before proceeding.
