Form 60 of Income-tax

What is Form 60 of the Income Tax?

It is a declaration filed by an individual in the absence of a PAN card in order to carry out specific financial transactions specified in rule 114B. Form 60 is filed by an individual in the following two situations –

1. In case the individual does not have a PAN card (Not applied for)
2. In case the individual has applied for a PAN card (Allotment is pending)

It is acceptable only in the situation when the total income of a person exceeds the maximum amount (Not taxable) in a relevant transaction year.

When to submit Income Tax Form 60?

PAN is mandatory for certain specific transactions. These transactions are shown in the tabular Format below –

Nature of Transaction	Value of transaction
Purchasing or selling of any motor vehicle excluding two wheelers	Any value
Opening of bank account other than basic saving bank account/application to bank or company for a debit or a credit card	Any value
Purchasing or selling of any immovable property	Value of Rs.10 Lakhs or above
Any fixed deposit with Bank/Non-banking financial institution/Post office/Nidhi	Amount exceeding Rs.50000 or more than Rs.5 Lakhs in aggregate during a tax year
Payment to restaurants or hotels in cash against the bills	Exceeding Rs.50000 at one time
Payment of a life insurance premium	Exceeding Rs.50000 in a year
Payment done in relation with travel to any foreign country or payment made to purchase a foreign currency in cash	Exceeding Rs.50000 at one time
Selling or purchasing of company shares or any contract for sale or purchase of securities	Exceeding Rs.1 Lakh per transaction
Payment to mutual funds to purchase units	Exceeding Rs.50000
Selling or purchasing goods/services other than above	Exceeding Rs.2 Lakhs per transaction

 

Why Form 60?

According to income tax regulations, it is required to obtain a PAN for certain categories of persons, such as those with taxable income, those working on a business/profession with a turnover exceeding a set threshold, and so on. Additionally, it is important to include the PAN in various documents, such as income tax returns, contact with the income tax department, and documents referring to specific transactions, such as asset sale and purchase.

It is possible that an individual did not obtain a PAN simply because it is not obligatory or that he applied for one but has not yet got it. In an ideal world, the absence of a PAN should not stop an individual from engaging in particular transactions or make it more difficult for income tax authorities to trace financial transactions in order to detect and prevent tax evasion/fraud. In these scenarios, Form no 60, along with all other supporting documents, can be filed to complete the transaction.

How and to whom one can submit Form 60?

The declaration in Form 60 is filed either online or in paper Form. Under the income tax act, Form 60 is submitted to the person with whom you are entered into a transaction.

Who need not submit Form 60?

Non-residents are exempted from submitting PAN or Form 60 for transactions like applying credit or a debit card, payment made to restaurants or hotels against the bill provided by them.

Documents to be submitted with Form 60

Every individual needs to submit a copy of the following documents along with Form 60 in the situation where PAN has not been applied by the individual –

1. Aadhar Card
2. Driving license
3. Ration card
4. Passport
5. ID proof of an accredited institution
6. Copy of electricity or telephone bill
7. Any document issued by state government, central government or any local bodies.
8. Any documentary proof related to address mentioned in the Form.

In case PAN is applied and allotment is pending, evidence of application submission will serve the purpose.

Information required to be filled in Form 60

Individual needs to submit the following information in Form 60 –

1. Name & full address of the declarant
2. Nature of the transaction. For ex – In case, your transaction is related to opening of a bank account, you need to enter the details like bank name, transaction amount. In case, the same is not applicable, you need to write “Not applicable”.
3. State your reason for not having PAN card and mention the same in the Form.
4. Kindly provide details of range, ward or circle where you filed your last income tax return (In case you are an assessed individual).

In case the particulars mentioned in Form 60 mismatches with the supporting documents, Form will be cancelled and you need to resubmit it.

How to Fill Form 60?

If you intend to use Form 60 in lieu of your PAN card, it is critical to retain a few facts on hand that will need to be filled in before to submitting the form. These details include the following:

• The full name of the declarant must be provided.
• The declarant's residence address must be specified.
• The declarant's date of birth and the name of his father (applicable to individuals only).
• Along with the declarant's mobile telephone number, the declarant's complete address must be provided.
• Details of the transaction must be provided (including the amount).
• The address of the location where you filed your income tax returns must be provided.
• The declarant's Aadhaar number.
• In the event that you have not received your PAN, you must provide the acknowledgement number and the date of application.

Income Tax Form 60 Format

You can download Form 60 by visiting below link –

Download Form 60

Consequences of the wrong declaration in Form 60

Before signing this declaration in Form 60, you must be cautious enough as any false information may result in consequence of the following types –

1. Imprisonment varies from 3 months to 2 years along with the imposition of the fine.
2. In case the amount is greater than Rs.25 Lakhs, imprisonment varies from 6 months to 7 years along with a fine for false declaration.

Can a minor fill form 60?

According to Rule 114B, if a minor engages in the transactions specified in Rule 114B and does not have taxable income, the minor may use the PAN of his father, mother, or guardian; otherwise, the minor must complete Form 60.

What is the validity of Form 60?

Form 60 is only valid for six years from the end of the individual's financial year in which the transaction occurred.

How many times can I use form 60?

You may submit Form 60 as many times as necessary. However, if you are subsequently submitting Form 60 to the same person or authority, you may choose to reveal only the incremental information. Incremental information refers to the particulars that have changed since you previously filed Form 60.

Form 60 is a lifesaver for someone who wants to engage in financial transactions but cannot do so due to a lack of a PAN. CBDT's recent changes have improved the benefits of submitting this form online. Thus, you are fully equipped to retaliate against someone; yet, they encourage you to obtain a PAN solely to open a bank account or similar endeavours. 

Is Form 60 required for NRI?

Yes, Non-Resident Indians (NRI's) are needed to provide Form 60 in place of a PAN card. However, Form 60 is only allowed for a limited number of transactions specified in Rule 114B.