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The Permanent Account Number or PAN is a vital identification and tax document for every taxpayer, including individuals, companies, and partnership firms. With the help of the PAN card , the tax department can identify taxpayers and check their tax status so that tax evasions and frauds can be effectively tracked.While a PAN card is mandatory for every taxpayer, the tax department has also made some alternatives available for certain situations. Form 60 is one such PAN substitute. Check out the answers to 4 of the most common questions regarding Form 60-
What is Form 60?
Form 60 is considered a substitute for PAN card for individuals if they conduct transactions specified under Section 114B of the IT Act and do not have a PAN card. It is a type of declaration which is considered to have legal validity in the banking sector.
- When an individual has applied for a PAN card but hasn’t got allotted as yet.
- When an individual hasn’t applied for a PAN card.
Under such circumstances, the date of application of the PAN card has to be filled in column 21 of the form. An individual having an income above the basic excepted limit is not eligible to file form 60.
When does one require Form 60?
Transactions mentioned under Section 114B of the IT Act can be conducted with Form 60, if the individual making the transaction does not have a PAN card. Some transaction examples are as follows-
- Investing in a fixed deposit of more than Rs. 50,000.
- Purchasing and selling of an immovable property which is more than Rs. 5 lakhs.
- While opening an account with a financial institution or a bank.
- Purchasing and selling of a motor vehicle (excluding a two-wheeler).
- Depositing an amount of Rs. 50,000 or more in a post office savings account.
- For purchasing a SIM card for mobile or installing a telephone landline.
- Paying restaurant bills of more than Rs. 25,000 in one transaction.
- Buying and selling securities of Rs 10 lakh or more.
What Documents are Required to Fill Form 60?
While submitting Form 60, all the necessary documents need to be submitted along with it. These documents are:
- Aadhar card
- Passport
- Driving licence
- Bank statement or passbook
- Voter ID
- Pensioner card
- NREGS
- Domicile certificate
- Landline telephone bill
- Electricity bill
- Water bill
- Identity proof -
- Address proof -
How to Fill and Submit Form 60 ?
If Form 60 is being used instead of a PAN card, then some information needs to be filled in the Form before it is filed. These are as follows:
- The declarant's full name has to be written on the form.
- The declarant's residential address.
- The declarant's date of birth, along with the father’s name.
- The declarant's Aadhaar card number.
- The declarant's contact number.
- Transaction information.
- Acknowledgement number and the date of application of the PAN card.
Whenever the transaction has to make, Form 60 has to be submitted there. The submission can be online or physically delivering it. It should be signed by the person submitting Form 60.
Can Form 60 be Used As a Substitute for the PAN Card?
Form 60, ensures that even transaction, conducted by a person who does not have a PAN card is accurately recorded. Moreover, it makes it helps people to conduct certain transactions without having a PAN card.Ready to make the most of your money? Start your tax planning journey now!
FAQS - FREQUENTLY ASKED QUESTIONS
What is the difference between form 60 and form 16 ?
Form 16 is a salary TDS certificate issued (under section 203) and submitted to the Income Tax Department. This has to be done by an employer on behalf of employees after deducting tax. Everyone is eligible for Form 16 even if their income does not fall under the tax exemption limit. However, if the income is below the tax exemption limit, the employer may choose not to issue Form 16.
Form 16 helps an individual file their income tax return. This form contains all the details of the tax computed based on the salary, other investments and allowances given by the company like medical bills, rent allowance, loan etc.
On the other hand, Form 60 is a declaration that must be filed by an individual who does not have a PAN card and needs to do financial transactions as specified in rule 114B of the Income Tax Act of 1961. A company or a firm cannot file this declaration. It is available on the Income Tax website and can be downloaded and submitted to the concerned person with whom the transactions are done.
Form 60 cannot substitute PAN in all cases and is not its replacement. In some instances, it is mandatory to furnish PAN card details, and Form 60 alone does not work. Any incorrect declaration on Form 60 will have serious consequences.
What is the validity period of form 60 ?
Form 60 acts like a substitute for a PAN card in specific cases. The extent to which Form 60 can be used in any banking transaction is not specified. However, its validity is 6 years from the end of the fiscal year the transaction was made.
Why is Form 60 required ?
In India, every citizen must have a PAN card. Only then can any sort of financial transaction be made by an individual. If such a person does not have a PAN card, form 60 needs to be submitted by the individual. This has been stated under the provisions of section 139A of the Income Tax Act of 1962.
Form 60 is required in the following circumstances:
·At the time of purchase or sale of property worth 5 lakhs or more.
·It has to be submitted if a person wants to make a fixed deposit with a bank and the amount is more than Rs. 50,000.
·It is mandatory when a person wants to open an account with a bank or banking institution. If the account holder is a minor, the guardian's PAN card will be needed. In the absence of a PAN card, Form 60 has to be submitted.
·It is required for the purchase or sale of motor vehicles (excluding two-wheelers).
·If the hotel or restaurant bill exceeds Rs. 25,000 and the payment is in a single transaction, then it is mandatory to fill out form 60.
·It is required while depositing Rs. 50,000 and above in any post office savings account.
·It is required while applying for a telephone connection. This includes landline and mobile.
·For opening demat accounts for the purchase or sale of securities.
·For payment of life insurance premiums exceeding Rs. 50,000 a year.
·For payment for purchasing units of mutual funds exceeding Rs. 50,000.
How do I download form 60 ?
Form 60 is available on the official website of the Income Tax Department. To download Form 60, the following steps need to be followed:
Step 1. Log into the Government managed website of the Income Tax Department.
Step 2. Select the 'Forms/downloads' option on the top navigation menu. Click on it.
Step 3. Choose the option 'Income Tax Form’.
Step 4. On clicking ‘Income Tax Form’, the individual is redirected to a page with a list of the different forms for income tax. Scroll down the list and look for 'Form 60'.
Step 5. Once Form 60 appears on the screen, click on it.
Step 6. Upon clicking, it will automatically start downloading to your system.
What is the importance of Form 60 ?
Form 60 is a substitute for PAN cards in certain financial transactions (only if the person does not have a valid PAN card). It is a legal document which has the following:
·Personal details
·Communication details
·Residential details
·AADHAAR number has to be provided
·Details of the document and the self-declaration.
Form 60 is not a permanent replacement for a PAN card. It can be considered a boon or blessing in disguise for people who want to make a particular transaction, as mentioned in Rule 114B. This is because they do not possess a PAN card. It should also be kept in mind that the information given and submitted in Form 60 should be accurate. Any wrong or misleading information might have serious consequences, including imprisonment. The Government has given certain leeway to its citizens for specific transactions by allowing them to fill and use Form 60 for their convenience. Citizens should also ensure that they do not misuse Form 60.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
