On 21 September 2026, the Central Board of Direct Taxes (CBDT) issued Notification No. 3 of 2026, prescribing the procedure for registration of reporting persons and entities and the submission of Form No. 98 under Rule 160 of the Income-tax Rules, 2026. This notification operationalizes the compliance framework for reporting entities required to furnish information on specified financial transactions, aligning with the government’s drive to widen the tax base and enhance transparency. The rules come into effect immediately upon publication.
Key Takeaways
- Mandatory Registration for Reporting Entities: All reporting persons and entities must now register on the income tax portal before submitting Form No. 98. The notification outlines a step-by-step digital registration process, including verification through PAN and Aadhaar authentication.
- Form No. 98 Submission Requirements: Form No. 98 must be filed electronically within the prescribed timelines, detailing specified financial transactions. Non-compliance may attract penalties under Section 271FA of the Income-tax Act, 1961.
- Alignment with Rule 160: The procedure harmonizes with Rule 160 of the Income-tax Rules, 2026, ensuring consistent reporting standards for high-value transactions and facilitating automated data matching by the tax administration.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement