CBDT Notification No. 3 of 2026 sets the electronic process for specified reporting persons that receive Form 97 declarations. For a covered property document, the Income-tax Rules name the Inspector-General, Registrar or Sub-Registrar as the document recipient. Form 98 is the reporting person’s statement; the notification does not make every property buyer a Form 98 filer or announce a new property tax.
Why buyers may be asked about Form 97
The Income-tax Rules, 2026 include specified immovable-property documents—purchase, sale, gift or joint development—when the amount or stamp valuation exceeds ₹20 lakh. For a covered entry, the rules address a person other than a company or firm who does not have a PAN and provide for a Form 97 declaration. The registrar or other specified reporting person that receives the declaration is responsible for the Form 98 statement under Rule 160.
The distinction is practical: an individual’s declaration and the reporting person’s statement are different filings. The Registrar/Sub-Registrar’s reporting duty does not turn the buyer into the Form 98 filer.
What Notification No. 3 changes
The CBDT notification dated 15 September 2026 sets the electronic registration and submission process for these reporting entities. It says declarations received up to 30 September are to be reported by 31 October; declarations received up to 31 March are reported by 30 April in the following financial year. The notification also keeps the earlier Form 61 process for financial years 2025–26 and earlier.
A separate PAN-application provision refers to property value above ₹45 lakh for an affected individual without PAN. The rule text is awkward at the exact boundary, so anyone transacting at that value should confirm the current requirement with the registering authority or a qualified tax adviser. The ₹20 lakh reporting-document test and the separate PAN condition should not be treated as one threshold.
A short paperwork check
Before registration, identify who is providing each declaration and who is submitting any reporting statement. Check both the stated transaction amount and the stamp valuation, and confirm the parties’ PAN status. Ask the registrar which form applies to the actual document. This explains the reporting process only; it does not determine capital-gains tax, stamp duty or the tax treatment of a specific transfer.
For a separate transaction-compliance issue, BestProp.ai has explained the TAN relief for certain purchases from non-resident sellers. That process is distinct from Forms 97 and 98.
Who files Form 98 for a covered property transaction?
The specified reporting person or entity that receives Form 97 files Form 98. For the covered property entry, the Rules name the Inspector-General, Registrar or Sub-Registrar.
Does Form 98 add a tax on property purchases?
Notification No. 3 describes registration and reporting procedures. It does not state a new property transaction levy or change the tax treatment of a particular sale.
Sources and limits
This explanation uses the primary CBDT Notification No. 3 of 2026 and the official Income-tax Rules, 2026, especially Rules 159 and 160. Confirm how the rules apply to a particular document or person with the registrar or a qualified tax professional.