The Central Board of Direct Taxes (CBDT), through the Directorate of Income Tax (Systems), has issued Notification No. 3 of 2026 dated September 15, 2026, prescribing the procedure for registration of reporting persons/entities and submission of Form No. 98 under Rule 160 of the Income-tax Rules, 2026.
Under Rule 160, every person referred to in clauses (a) and (b) of sub-rule (2), who receives a declaration in Form No. 97 in relation to a transaction specified in the Table under Rule 159, is required to furnish a corresponding statement in Form No. 98. The statement is required to be furnished electronically through online transmission to the server designated for this purpose.
Form No. 98 to be filed by October 31 or April 30, depending upon receipt of declaration
The Notification specifies the statutory timelines for submission of Form No. 98. Where declarations in Form No. 97 are received up to September 30, Form No. 98 must be furnished by October 31 of the same year. Where declarations are received up to March 31, the statement must be furnished by April 30 of the financial year immediately following the financial year in which the declaration is received.
Reporting entities required to obtain ITDREIN through Income-tax e-Filing Portal
In exercise of powers under Rule 332 of the Income-tax Rules, 2026, the Director General of Income-tax (Systems) has prescribed that a reporting person/entity must register with the Income Tax Department through the e-Filing Portal using the login credentials employed for filing its income-tax return. For first-time registration, the reporting person/entity is required to access the “Reporting Portal” through the “Pending Actions” tab and furnish details relating to the form type, category, address and principal officer.
Upon successful registration, an Income Tax Department Reporting Entity Identification Number (ITDREIN) will be generated. The principal officer will receive confirmation through registered e-mail and SMS. Importantly, the Notification provides that once an ITDREIN is generated, there will be no option to deactivate it.
Existing Form No. 61 registrants need not register afresh
The CBDT has provided continuity for entities already registered under the erstwhile Form No. 61 compliance mechanism. Such reporting persons/entities will not be required to obtain fresh registration for Form No. 98. Their existing ITDREIN and respective principal officers will continue to remain valid. For verification of Form No. 98, the principal officer will act as the “Designated Director”.
Form No. 98 to be digitally signed and uploaded through Reporting Portal
For submission of Form No. 98, the prescribed Schema, Report Generation and Validation Utility and Generic Submission Utility will be made available under the “Resources” tab of the Reporting Portal. The prepared statement must be digitally signed and uploaded on the Reporting Portal or filed through the Generic Submission Utility using the PAN and password of the principal officer.
CBDT prescribes mechanism for correction of inaccurate or defective statements
Where a reporting person/entity subsequently discovers any inaccuracy in the information furnished, or defects are communicated through a Data Quality Report (DQR), the errors will have to be rectified through a correction statement. The Reporting Portal will display the number of “Reports Requiring Correction (RRC)”, and the reporting entity will be required to rectify the defects until the RRC count becomes zero within the specified period.
Separate ‘Deletion Statement’ permitted for inadvertently filed reports
The Notification also provides a mechanism for deleting reports filed inadvertently. The reporting person/entity may select the statement type as “Deletion Statement” and include the reports sought to be deleted in a single statement, using the exact values originally furnished against each field. The procedure for filing a deletion statement will be similar to that applicable to a correction statement.
Reporting entities required to maintain information security and archival framework
Reporting persons/entities have also been mandated to document and implement appropriate information-security policies and procedures, with clearly defined roles and responsibilities, to safeguard submitted information and supporting documents. Suitable archival and retrieval policies must also be maintained to ensure that information and documents can be made promptly available to competent authorities whenever required.
New procedure effective from September 15, 2026; old regime continues for FY 2025-26 and earlier years
The Notification comes into force with effect from September 15, 2026. However, reporting relating to FY 2025-26 and earlier financial years, including correction and deletion of earlier statements, will continue under the provisions of the Income-tax Act, 1961 and Income-tax Rules, 1962 through Form No. 61, in accordance with Notification No. 2 of 2018 dated April 5, 2018.
The Notification can be accessed at: https://www.incometaxindia.gov.in/documents/d/guest/notification-3-of-2026-pdf
