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Form 60 - PAN Card not available for Rule 114B Transactions

Form 60 is a document required to be submitted when an individual does not have a permanent account number and enters into transactions specified in Rule 114B of the Income Tax Act, 1961. It is mandatory for a person to submit this document.

PAN card helps in the identification of taxpayers and also provides information about total taxes paid, outstanding taxes, refunds issued etc. The Central Government has made it mandatory to provide a Permanent Account Number (PAN) for a variety of transactions. This aids in tracking tax evasions, tax frauds and illegal transactions.

It is possible that a person has not obtained PAN because it was not mandatory or also that he may have applied for it but not received it yet. In either case, the absence of PAN should not be a deterrent for an individual to undertake certain transactions or make it challenging for the tax authorities to track financial transactions to prevent tax evasion/ fraud. Form 60 is required to be submitted along with the requisite supporting documents to carry out the specified transactions.

For specified transactions, where the individual may not have a PAN card, they will be required to provide a duly filled and signed copy of Form 60 along with the other supporting transaction.

Form 60 is a declaration required to be furnished by individuals entering into transactions specified under the Rules specified in Rule 114B of the act.

For a minor opening an account, the PAN of the guardian is required to be obtained along with the application

Form 60 is required for the following transactions if an individual does not possess a PAN card:

  • Purchase or sale of immovable property having a value of Rs 5 lakhs or more
  • Purchase of any motor vehicle
  • A fixed deposit of an amount more than Rs. 50000 with a bank.
  • Any deposit exceeding Rs 50,000 with a post office.
  • Any contract for purchase of securities having a value of Rs 10 Lakh or more.
  • Payments to restaurants against bills of Rs. 25000 or more.
  • Opening any account with a financial institution or a Bank.

Documents required for Form 60

The documents required to be submitted by an individual along with Form 60 include:

  • Driving License
  • Passport
  • Ration Card
  • Copy of Electricity bill or Telephone bill.
  • Any document issued by the Central Government, State Government or Local Bodies.

Procedure for filling Form 60

The following things are required to be noted while filling and submitting Form 60:

  • Name and address of the assessee.
  • Date of Birth and Father's name.
  • Full address along with a mobile number
  • Particulars and amount of transaction.
  • The Range, Ward or Circle where the last return was filed.
  • The Aadhar number of the applicant.
  • The date of application for PAN and the acknowledgement number of PAN, if applied for.

How to submit Form 60?

Form 60 can be submitted in both online and offline modes. In the offline mode, you need to fill up Form no. 60 in hard copy and submit it to the concerned authority. Such authority may be a Bank or an Income Tax Authority according to the purpose.

The procedure for online submission involves the following modes:

1. Obtaining an OTP on your mobile number registered with Aadhar.

2. Using biometrics at a facilitation center.

Where can Form 60 be found?

Form 60 can be found on the official website of the Income Tax Department. You may follow the steps below to obtain a PDF version of the same:

  • Visit the official site of the Income Tax Department.
  • Select “Forms/Download” from the top menu
  • Select Income Tax forms from the menu
  • You will enter a page with a list of various income tax forms.
  • Scroll down the list till you find “Form 60”
  • Select the document to download to your system.

Procedure for submitting Form 60

Form 60 is required to be submitted to the entity with which the transaction is to be performed, either online or on paper. For instance, if you want to open a bank account but do not have a PAN, you are required to submit a completed copy of Form 60 along with the supporting documents to the bank at the time of such application.

Can Form 60 be a substitute for a PAN card everywhere?

No , it cannot act as a substitute for PAN in every case. The Government has notified a particular set of transactions for which the assessee is entitled to use Form 60. For the following transactions you will require a PAN Card:

  • If your total income exceeds the basic exemption limit.
  • If your turnover in case of business or profession exceeds Rs. 5 Lakhs.
  • If you are a Managing Director of a company, Head of a Hindu Undivided Family (HUF) or a partner of a firm.
  • If you are filing your income return under Section 139(4A)
  • Residents are other than individuals entering into a financial transaction of Rs 2.5 lakhs or more.

What is the structure of Form 60?

The following details are required to be provided while filling out the form:

  • First name, middle name and surname of the assessee.
  • Date of birth in the (DD/MM/YYYY format).
  • Father’s first name, middle name and surname
  • Name of the apartment or house
  • Street name
  • Locality or area.
  • City
  • District
  • State
  • Pin code
  • Telephone number with STD code.
  • Mobile number of the assessee.
  • Date of transaction.
  • A number of individuals involved in the transaction.
  • Mode of Payment.
  • Aadhar Number
  • Acknowledgement number if applied for a PAN Card.
  • Agricultural and Non-agricultural income if not applied for a PAN card.
  • Details of the documents are provided as proof of address and identity.

Applicability of Rule 114B on Minors?

According to Rule 114B, if a minor enters into any of the above-specified transactions and does not have income chargeable to tax, he can quote PAN of his father, mother or Guardian before entering into any of the above-specified transactions.

Is there any limit on the number of times Form 60 can be used?

There is no such specified limit on the usage of Form 60. However, if you are reporting to the same authority or person, you can opt to disclose only the incremental information. It means that only information which has changed after the filing of Form 60 is required to be disclosed.

Form 60 can be considered a blessing for a person willing to enter into a specified transaction but is prevented from doing so because of a lack of PAN. Also, the recent changes made by the CBDT have only added to the benefits and the convenience of submitting the form online.

Who need not submit Form 60?

Non-residents are exempt from quoting PAN/Form 60 for a few specified transactions which include applying for debit or credit cards, payments to restaurants or hotels against their respective bills.

Consequences of Wrong Declaration

You need to be really careful before signing any declaration in Form 60 as any false declaration in the statement may have legal consequences.

That is, imprisonment from 3 months to two years can be imposed in case of any false particulars mentioned in the application form. However, if the amount involved exceeds Rs 25 Lakhs , the imprisonment term may extend from 6 months to seven years along with fine for any false declaration made.

FAQs

1. What is form 60?

It is a declaration to be filed by an individual or a person who does not have a permanent account number and who enters into any transaction that is specified under section 114B.

2. Why is form 60 required?

Form 60 is availed for any contract exceeding the value of Rs. 10 lakhs or for the sale or purchase of securities.

3. What is the validity of form 60?

Form 60 is valid only for six years from the end of the financial year when the transaction was made.

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