Income Tax Act 2025: No need to reapply for PAN; existing PANs remain valid -- CBDT clarifies
The Income Tax Department has clarified several transition-related issues ahead of the implementation of the Income Tax Act, 2025 from April 1, 2026. Existing PANs will remain valid, no fresh applications will be needed for pending requests, and FY 2025-26 returns will continue to be filed under the Income Tax Act, 1961.
- Jun 29, 2026,
- Updated Jun 29, 2026 8:25 AM IST
The Income Tax Department has released a comprehensive set of Frequently Asked Questions (FAQs) to address taxpayer concerns over the implementation of the Income Tax Act, 2025, which comes into effect from April 1, 2026. The clarifications cover issues ranging from PAN applications and income tax return (ITR) filing to the new forms prescribed under the Income Tax Rules, 2026.
One of the biggest takeaways is that taxpayers do not need to apply for a fresh PAN after the new law comes into force. Existing PAN and TAN numbers will continue to remain valid, and the transition to the new Act will not affect their usability.
Existing PANs remain valid
According to the FAQs, all existing PAN and TAN numbers issued under the Income Tax Act, 1961 will continue to be valid under the Income Tax Act, 2025. The department clarified that the newly introduced application forms—Forms 93, 94, 95, 96, 134 and 135—are applicable only for fresh applications filed on or after April 1, 2026.
The department has also clarified that PAN allotment applications pending as on March 31, 2026, will continue to remain valid. Applicants whose requests are under processing will not be required to submit a fresh application under the new Act.
MUST READ: No Section 80C, no HRA? Here's how salaried employees can save tax under New Tax Regime
New PAN applications after April 1
Individuals applying for a new Permanent Account Number on or after April 1, 2026 will have to use the new forms prescribed under the Income Tax Rules, 2026.
The department has also introduced a replacement for the existing Form 60, which is used by individuals who do not possess a PAN but need to undertake specified financial transactions.
Under the Income Tax Act, 2025, such persons will instead have to furnish Form 97 while entering into transactions specified under Rule 159(2) of the Income Tax Rules, 2026.
Businesses and institutions receiving these declarations will also see a procedural change. Instead of filing Form 61, they will now be required to submit a half-yearly statement in Form 98 to the Income Tax Department.
MUST READ: June 30 to July 31: ITR scrutiny notice deadline ends June 30; key tax dates to track in July
Return filing framework largely unchanged
The FAQs also make it clear that the new law does not significantly alter the basic framework for filing income tax returns.
The provisions relating to return filing have been consolidated under Section 263 of the Income Tax Act, 2025. The section covers original, belated, revised and updated returns within a single provision. However, the categories of taxpayers who are required to file returns remain broadly the same as those under the Income Tax Act, 1961.
The department has also addressed confusion surrounding the transition year, confirming that taxpayers will not be required to file two income tax returns.
MUST READ: No Section 80C, no HRA? Here's how salaried employees can save tax under New Tax Regime
Which Act applies for FY 2025-26?
The Income Tax Department has clarified that income earned during Financial Year 2025-26 will continue to be governed entirely by the Income Tax Act, 1961, even if the return is filed after the new Act becomes effective on April 1, 2026.
Accordingly, taxpayers filing returns for Assessment Year 2026-27 will continue to use the ITR forms notified under the Income Tax Act, 1961. These forms—including ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 and ITR-7—will be made available on the e-filing portal well before the due date.
The FAQs underline that while the Income Tax Act, 2025 reorganises provisions and introduces new forms, the transition has been designed to be seamless. Existing PANs remain valid, pending applications will continue without interruption, and taxpayers can continue following familiar return filing procedures during the shift to the new tax regime.
The Income Tax Department has released a comprehensive set of Frequently Asked Questions (FAQs) to address taxpayer concerns over the implementation of the Income Tax Act, 2025, which comes into effect from April 1, 2026. The clarifications cover issues ranging from PAN applications and income tax return (ITR) filing to the new forms prescribed under the Income Tax Rules, 2026.
One of the biggest takeaways is that taxpayers do not need to apply for a fresh PAN after the new law comes into force. Existing PAN and TAN numbers will continue to remain valid, and the transition to the new Act will not affect their usability.
Existing PANs remain valid
According to the FAQs, all existing PAN and TAN numbers issued under the Income Tax Act, 1961 will continue to be valid under the Income Tax Act, 2025. The department clarified that the newly introduced application forms—Forms 93, 94, 95, 96, 134 and 135—are applicable only for fresh applications filed on or after April 1, 2026.
The department has also clarified that PAN allotment applications pending as on March 31, 2026, will continue to remain valid. Applicants whose requests are under processing will not be required to submit a fresh application under the new Act.
MUST READ: No Section 80C, no HRA? Here's how salaried employees can save tax under New Tax Regime
New PAN applications after April 1
Individuals applying for a new Permanent Account Number on or after April 1, 2026 will have to use the new forms prescribed under the Income Tax Rules, 2026.
The department has also introduced a replacement for the existing Form 60, which is used by individuals who do not possess a PAN but need to undertake specified financial transactions.
Under the Income Tax Act, 2025, such persons will instead have to furnish Form 97 while entering into transactions specified under Rule 159(2) of the Income Tax Rules, 2026.
Businesses and institutions receiving these declarations will also see a procedural change. Instead of filing Form 61, they will now be required to submit a half-yearly statement in Form 98 to the Income Tax Department.
MUST READ: June 30 to July 31: ITR scrutiny notice deadline ends June 30; key tax dates to track in July
Return filing framework largely unchanged
The FAQs also make it clear that the new law does not significantly alter the basic framework for filing income tax returns.
The provisions relating to return filing have been consolidated under Section 263 of the Income Tax Act, 2025. The section covers original, belated, revised and updated returns within a single provision. However, the categories of taxpayers who are required to file returns remain broadly the same as those under the Income Tax Act, 1961.
The department has also addressed confusion surrounding the transition year, confirming that taxpayers will not be required to file two income tax returns.
MUST READ: No Section 80C, no HRA? Here's how salaried employees can save tax under New Tax Regime
Which Act applies for FY 2025-26?
The Income Tax Department has clarified that income earned during Financial Year 2025-26 will continue to be governed entirely by the Income Tax Act, 1961, even if the return is filed after the new Act becomes effective on April 1, 2026.
Accordingly, taxpayers filing returns for Assessment Year 2026-27 will continue to use the ITR forms notified under the Income Tax Act, 1961. These forms—including ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 and ITR-7—will be made available on the e-filing portal well before the due date.
The FAQs underline that while the Income Tax Act, 2025 reorganises provisions and introduces new forms, the transition has been designed to be seamless. Existing PANs remain valid, pending applications will continue without interruption, and taxpayers can continue following familiar return filing procedures during the shift to the new tax regime.