Form 97: Declaration by a person without PAN entering a specified transaction under rule 159

159. Transactions in relation to which Permanent Account Number is to be quoted or applied for purposes of section 262(1)(f) and 262(10)(c) and (e). — (1) Every person shall quote his Permanent Account Number in all documents, pertaining to the transactions specified in column 2 for value of transaction specified in column 3 of the following Table : — Table Sl.no. Nature of transaction Value of transaction Person receiving or issuing the document in relation to transaction in column (2) 1 2 3 4 1. Making an application to any banking company or a co -operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) or to any other company or institution, for issue of a credit card. All such transactions. (i) Manager or officer of a banking company or co-operative bank; or (ii) the principal officer of the company; or (iii) the principal officer of the institution, as the case may be. 2. Opening of an account with a depository, participant, custodian of securities or any other person registered under section 12(1A) of the Securities and Exchange Board of India Act, 1992 (15 of 1992). All such transactions. The depository, participant, custodian of securities or any other person registered under section 12(1A) of the Securities and Exchange Board of India Act, 1992 (15 of 1992). 3. Payment to the Reserve Bank of India, constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934) for acquiring bonds issued by it. Amount exceeding ₹ 50000. The officer of the Reserve Bank of India, constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934), or of any agency bank authorised by the Reserve Bank of India. 4. Payment to a Mutual Fund for purchase of its units. Amount exceeding ₹ 50000. The trustee or any other person duly authorised by the trustee of a Mutual Fund. [PDF PAGE 125] [भाग II—खण्‍ ड 3(i)] भारत‍का‍राजपत्र‍:‍असाधारण 1657 5. A contract for sale or purchase of securities (other than shares) as defined in section 2(h) of the Securities Contracts (Regulation) Act, 1956 (42 of 1956). Amount exceeding ₹ 100000 per transaction. (i) The principal officer of the company; or (ii) stock-broker, sub -broker, share transfer agent, banker to an issue, trustee of a trust deed, registrar to issue, merchant banker, underwriter, portfolio manager, investment adviser and such other intermediaries registered under section 12(1) of the Securities and Exchange Board of India Act, 1992 (15 of 1992), as the case may be. 6. Deposit with — (i) a banking company or a co - operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act); or (ii) post office. Cash deposits aggregating to ten lakh rupees or more in a financial year, in one or more account of a person (i) Manager or officer of a banking company or co - operative bank; or (ii) postmaster; or (iii) the principal officer of the institution, as the case may be. 7. Withdrawal with — (i) a banking company or a co - operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act); or (ii) post office. Cash withdrawals aggregating to ten lakh rupees or more in a financial year, in one or more account of a person (i) Manager or officer of a banking company or co - operative bank; or (ii) postmaster; or (iii) the principal officer of the institution, as the case may be. 8. Sale or purchase of — (i) mo t o r vehicle or vehicle, as defined in section 2(28) of the Motor Vehicles Act 1988 (59 of 1988), which requires registration by a registering authority under Chapter IV of that Act, except ‗tractor‘ as defined in section 2(44) of the said Act; or (ii) motor cycle as defined in section 2(27) of the Motor Vehicles Act 1988 (59 of 1988). Amount exceeding ₹ 500000. The person who sells the motor vehicle or motor cycle. 9. Sale or purchase, by any person, of shares of a company not listed in recognised stock exchange. Amount exceeding ₹ 100000 per transaction The principal officer of a company issuing such shares [PDF PAGE 126] 1658 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] 10. Payment to a company or an institution for acquiring debentures or bonds issued by it. Amount exceeding ₹ 50000 The principal officer of a company or an institution issuing such bonds or debentures. 11. Purchase or sale or gift or joint development agreement by any person of any immovable property. Amount exceeding twenty lakh rupees or valued by stamp valuation authority referred to in section 78, at an amount exceeding twenty lakh rupees. Inspector-General appointed under section 3 of the Registration Act, 1908 (16 of 1908) or Registrar or Sub - Registrar appointed under section 6 of that Act. 12. Opening an account other than a time - deposit referred in Sl. No. 13 and a Basic Savings Bank Deposit Account with (i) a banking company; or (ii) a co -operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act). All such transactions. (i) Manager or officer of a banking company or co-operative bank; or (ii) the principal officer of the institution, as the case may be. 13. A time deposit with — (i) a banking company or a co - operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act); or (ii) a post office; or (iii) a Nidhi referred to in section 406 of the Companies Act, 2013 (18 of 2013); or (iv) a non-banking financial company which holds a certificate of registration under section 45 -IA of the Reserve Bank of India Act, 1934 (2 of 1934), to hold or accept deposit from public. Amount exceeding ₹ 50000 or aggregating to more than ₹ 500000 during a financial year. (i) Manager or officer of a banking company or co-operative bank; or (ii) postmaster; or (iii) the principal officer of the company; or (iv) the principal officer of the institution, as the case may be. 14. Commencement of account -based relationship with an insurer as defined in section 2(9) of the Insurance Act, 1938 (4 of 1938) All such transactions where insurance premium exceeds ₹ 50000 during a financial year. The manager or officer of an insurer. 15. Payment to (i) a hotel or restaurant; or (ii) a convention Centre; or (iii) a banquet hall; or (iv) any person engaged in event Payment in cash of an amount exceeding ₹ 100000. The person issuing the document including the bill. [PDF PAGE 127] [भाग II—खण्‍ ड 3(i)] भारत‍का‍राजपत्र‍:‍असाधारण 1659 management, against a bill or bills at any one time. 16. Sale or purchase by any person, of goods or services of any nature other than those specified at Sl. Nos. 1 to 15, if any. Amount exceeding ₹ 200000 per transaction. The person issuing the document including the bill. (2) In respect of transactions mentioned in column (2) of the Table in sub-rule (1) — (a) any person who is a minor, not having any income chargeable to tax, and who enters into any of the said transactions, shall quote the Permanent Account Number of his father or mother or guardian, as the case may be, in the document pertaining to the said transaction; (b) any person, not being a company or a firm, a nd who does not have a Permanent Account Number, entering into any of the transactions mentioned at Sl. Nos. 11 to 16, shall make a declaration in Form No. 97 giving therein the particulars of such transaction; (c) out of the transactions mentioned in clau se (ii), a foreign company entering into transactions at Sl. No. 12 or 13 in an IFSC banking unit, who does not have — (I) a Permanent Account Number; and (II) any income chargeable to tax in India, shall make a declaration in Form No. 97. (3) For the purposes of section 262(1)(f), any person, not being a company or a firm, and who does not have Permanent Account Number, entering into— (a) any of the transactions mentioned at Sl. No. 1 to 10; (b) transaction mentioned at Sl. No. 11, where amoun t of immovable property exceeds forty -five lakh rupees or more, or its value as per stamp valuation authority referred to in section 78 of the Registration Act, 1908 (16 of 1908) exceeds forty-five lakh rupees, shall apply for Permanent Account Number. (4) The provisions of sub-rule (3) shall not apply in a case, — (a) where the person carrying out transactions as per Sl. Nos. 1 to 10 of column (2) of the Table in sub - rule (1), is a non-resident (not being a company) or a foreign company; (b) the transaction is entered into with an IFSC banking unit; and (c) such non -resident (not being a company) or the foreign company does not have any income chargeable to tax in India. (5) The person referred to in column (4) of Table in sub-rule (1), who has received or issued any document, shall ensure that— (a) Permanent Account Number after verification, has been duly and correctly mentioned therein or as the case may be, a declaration in Form No. 97 has been duly furnished with complete particulars; (b) the valid Permanent Account Number or the fact of furnishing of Form No. 97, is duly mentioned in the records maintained for the transactions referred to in column (2) of Table in sub-rule (1); and (c) the Permanent Account Number or the details of Form No. 97 are linked and mentioned in any information furnished to the income -tax authority or any other authority or agency under any provision of the Act or any rule made thereunder. (6) The provisions of sub-rule (1) shall not apply to the following class or classes of persons:— (a) the Central Government, State Governments and the consular offices; and (b) the non-residents referred to in section 2(72) in respect of the transactions referred to against Sl. No. 1 or 3 or 15 or 16 of the Table. (7) For the purposes of this rule,- (a) "IFSC banking unit" means a financial institution defined under section 3(1)(c) of the International Financial Services Centres Authority Act, 2019 (50 of 2019), that is licensed or permitted by the International Financial Services C entres Authority to undertake permissible activities under the International Financial Services Centres Authority (Banking) Regulations, 2020; and (b) "time deposit" means any deposit which is repayable on the expiry of a fixed period. (8) The Principal D irector General of Income -tax (Systems) or Director General of Income -tax (Systems) shall lay down the formats and standards along with procedure as regards the manner of authentication of Permanent Account Number. [PDF PAGE 128] 1660 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]

160. Time and manner in which persons referred to in rule 159 shall furnish a statement containing particulars of Form No. 97. — (1) Every person referred to in sub -rule (2), who has received any declaration in Form No. 97 in relation to a transaction specified in column 2 of the Table in rule 159, shall— (a) furnish a statement in Form No. 98 containing particulars of declaration to the Director of Income - tax (Intelligence and Criminal Investigation) or the Joint Director of Income -tax (Intelligence and Criminal Investigation) through online t ransmission of electronic data to a server designated for this purpose and obtain an acknowledgement number; and (b) retain Form No. 97 for a period of six years from the end of the financial year in which the transaction was undertaken. (2)The persons referred to in sub-rule (1) shall be — (a) Sl. No. 11 or 12 or 13 or 14; and (b) Sl. No. 15 or 16 and who is required to get his accounts audited under section 58, of the column 4 of the Table in rule 159. (3) The statement referred to in sub-rule (1)(i) shall,— (a) where the declarations are received by the 30th September, be furnished by the 31st October of that year; and (b) where the declarations are received by the 31st March, be furnished by the 30th April of the financial year immediately following the financial year in which the form is received. (4) The statement referred to in sub-rule (1)(i) shall be verified— (a) in a case where the person furnishing the statement is an assessee as defined in section 2(11), by a person specified in section 265; (b) in any other case, by the person referred to in column (4) of the Table in rule 159.