Notification No. 3 of 2026, issued on 21 September 2026, operationalizes the procedural framework for registration of reporting persons/entities and submission of Form No. 98 under Rule 160 of the Income-tax Rules, 2026. This rule stems from the Finance Act, 2026, which expanded the scope of Statement of Financial Transactions (SFT) reporting to include high-value digital asset transfers, cross-border remittances exceeding ₹10 lakh, and transactions with entities in notified jurisdictional areas. The notification mandates that every reporting entity — including banks, NBFCs, cryptocurrency exchanges, and authorized dealers — must register on the Reporting Portal (https://reportingportal.incometax.gov.in) using Form 98 within 30 days of becoming liable to report. The registration process involves digital signature certificate (DSC) based authentication and Aadhaar/PAN linkage of the principal officer.
Key Takeaways
- Mandatory Registration Timeline: Entities commencing operations after 1 October 2026 must register within 30 days of their first reportable transaction; existing entities must re-validate registration by 31 October 2026 using the new Form 98.
- Form 98 Data Requirements: The form captures the entity’s Legal Entity Identifier (LEI), Global Intermediary Identification Number (GIIN) for FATCA purposes, and a declaration of compliance with Anti-Money Laundering (AML) guidelines under PMLA, 2002.
- Consequences of Non-Compliance: Failure to register attracts a penalty of ₹5,000 per day of default under Section 271FA, and the Assessing Officer may disable the entity’s ability to file SFT/TDS returns, effectively halting its financial operations.
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