Individuals who engage in a certain transaction listed in Rule 114B of the Income-tax Rules, 1962 but do not possess a PAN are required to file Form 60 as a declaration. Form 60 is a declaration form used in India for individuals who do not have a Permanent Account Number (PAN) but need to carry out certain financial transactions. It serves as an alternative to providing a PAN when conducting specific transactions or opening certain accounts.
It’s important to note that while Form 60 income tax allows individuals to carry out financial transactions without a PAN, it does not exempt them from tax liabilities. The individual is still responsible for fulfilling their tax obligations.
What is Form 60?
Form 60 is the declaration that is required to be filed by an individual or a person (except companies and firms) who does not have a permanent account no. (PAN) while entering into some specified transactions as per Rule 114B of the Income Tax Rules, 1962.
If your total income (other than agriculture) is more than the basic exemption limit, then in such cases, form 60 format is not acceptable. In such a case, you can use Form 60 only if you have already applied for PAN, and you must also mention the date of application in column 21 of the form.
When is Form 60 of Income Tax Required?
When you decide to enter into any transaction with a banking institution or deal in some sort of asset, a PAN card is the basic identity proof required.
But, there are still several people who do not possess PAN, or they might have already applied for PAN and are waiting for an allotment. Form 60 can be used in many cases instead of furnishing PAN by such people.
Other than tax authorities, PAN or Form 60 PAN card, is required for a variety of transactions such as
| Nature of Transaction, | Value of Transaction |
|---|---|
| Sale or purchase of Motor Vehicle [other than two-wheeled vehicles], | Irrespective of value / Any Value |
| Opening a Bank account(other than basic savings deposit account) | Irrespective of value |
| Getting new Debit or Credit card | Irrespective of value |
| Opening DEMAT account | Irrespective of value |
| Payment to hotel or restaurant at one time | Cash payment exceeding Rs 50,000 |
| Travelling expenses to a foreign country or buying foreign currency at one time | Cash payment exceeding Rs 50,000 |
| Buying Mutual funds | Amount exceeding Rs 50,000 |
| Acquiring bonds or debentures | Amount exceeding Rs 50,000 |
| Acquiring bonds issued by RBI | Amount exceeding Rs 50,000 |
| Depositing money with (a) Bank (b) Post Office | Cash exceeding Rs 50,000 in one day |
| Purchasing Bank Draft/ pay order/ banker’s cheque | Cash exceeding Rs 50,000 in one day |
| Time deposit (FD) with (a) Bank (b) Post Office (c) NBFC (d) Nidhi company | Exceeding Rs 50,000 at a time or Rs 5,00,000 in a financial year |
| Life Insurance Premium | If the amount exceeds Rs 50,000 in an FY |
| Trading in securities | Amount Exceeding Rs 1,00,000 per transaction |
| Trading in shares of unlisted company | Amount Exceeding Rs 1,00,000 per transaction |
| Sale or purchase of any immovable property | If the amount or registered value is Rs 10,00,000 or more |
| Buying and selling of goods and services | Exceeding Rs 2,00,000 per transaction |
How to Download Form 60 PDF?
- Step 1 – Visit the official website of the Income Tax Department
- Step 2 – Click on ”Forms/Download” on the top navigation menu
- Step 3 – In the drop-down menu, select ”Income Tax Forms”
- Step 4 – You will be redirected to a page with a list of different forms for income tax
- Step 5 – Scroll down the list until you reach “Form No.60.”
- Step 6 – Select the document, and it will get automatically downloaded to your system.
Information Required to Fill Form 60
- Your complete name
- Date of Birth
- Full address
- Telephone Number / Mobile Number
- Amount of Transaction
- Date of transaction
- Mode of transaction
- Aadhaar number
- If PAN is applied, then the application and acknowledgment number
- Disclosures of income
- Sign and mention the date and place.
Documents Required to Submit with Form 60
- Aadhaar Card
- Driving license
- Bank Pass Book (having photograph)
- Elector’s Photo ID
- Ration Card
- Passport
- Pensioner Photo card
- Proof of address
- Telephone bill and electricity bill copies
- Communication or document issued by Central or State Government or local bodies
- Domicile Certificate
- Kisan passbook
- Arm’s License etc
How to Submit PAN Form 60?
The online procedure to file Form 60 with the Income Tax Department shall follow as under
- The electronic verification can be done through this website- https://report.insight.gov.in/reporting-webapp/portal/homePage
- It can also be done using certain Aadhaar specified Authentications:
- Through OTP on your Aadhaar-linked mobile number or mail ID.
- Through Biometric modalities, i.e., either through iris (scanning your eye) or fingerprint.
- Two-way authentication, i.e., OTP + biometric modalities
- Or Use of OTP & fingerprint & iris altogether.
What Should be Done if a Minor is Entering into a Transaction that Requires a PAN?
Rule 114B of the Income Tax Act 1961 expressly provides that if a minor enters into any of the above-specified transactions and he does not have income chargeable to tax, then the Minor can quote the PAN of his Father, Mother, or Guardian while entering into such contracts.
Whether NRI Needs to Submit Form 60?
As per Rule 114B, Non Residents are required to quote PAN or file Form 60 only for a limited number of transactions, which are as under:
| Nature of Transaction | Value of Transaction |
|---|---|
| Sale or purchase of Motor Vehicle | Irrespective of value / Any Value |
| Opening a Bank account | Irrespective of value |
| Opening DEMAT account | Irrespective of value |
| Buying Mutual funds | Amount exceeding Rs 50,000 |
| Buying bonds or debentures | Amount exceeding Rs 50,000 |
| Depositing money with (a) Bank (b) Post Office | Cash exceeding Rs 50,000 in one day |
| Time deposit (FD) with (a) Bank (b) Post Office (c) NBFC (d) Nidhi company | Exceeding Rs 50,000 at a time or Rs 5,00,000 in a financial year |
| Life Insurance Premium | If amount exceeds Rs 50,000 in a FY |
| Trading in securities | Amount Exceeding Rs 1,00,000 per transaction |
| Trading in shares of unlisted company | Amount Exceeding Rs 1,00,000 per transaction |
| Sale or purchase of any immovable property | If amount or registered value is Rs 10,00,000 or more |
Consequences of Wrong Declarations Made in Form 60
As per provisions of section 277, a person disclosing misleading or untrue information will be held liable under:
- If the resulting tax evasion amount exceeds Rs 25 lakhs, rigorous imprisonment of a minimum of 6 months to a maximum of 7 years + fine as applicable.
- For other cases, rigorous imprisonment of at least 3 months to 2 years with a fine.
FAQs
Difference Between Form 60 And Form 16
These two forms are altogether different. Where Form 60 is used as a document in lieu of furnishing PAN for some financial transaction, Form 16 is issued by your employer, which enlists your components of salary, etc.
How many times can we use Form 16?
You can use Form 60 as many times as it is required. But, if you are subsequently furnishing Form 60 to the same person or authority, you can opt to disclose only the incremental information. Incremental information means the particulars that have changed after you filed Form 60 last time.
Form 60 is a boon for a person willing to enter into a financial transaction but was prevented to do so because he lacked PAN. Submitting this form online as per the recent changes made by CBDT has added to the benefits.
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