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Form 61- Income from Agriculture and Unavailability of PAN

For recording all the transactions and for transparency of these transactions, the government has issued some guidelines for every citizen. One of the most important documents for the smooth functioning of the economy is the PAN card. This is required for every transaction including all banking and financial transactions. The PAN card is issued by the Income Tax Department and the Central Board of Direct Taxes.

However, in some cases, PAN cards are not available with every citizen and in this case Form 61 can be used by them.

What is Form 61?

This form is a declaration by an individual that all the income that is earned is under the heading of agricultural income and no other forms of income are earned by the above person. This is with respect to transactions mentioned in clauses (a) to (h) under Rule 114B.

The declaration is as below

FORM -61

What are the uses of form 61?

The form can be used instead of a PAN card under rule 114B. The following transactions can be made using form 61

  • Sale or purchase of property over Rs. 5,00,000
  • Sale or purchase of vehicles except for two wheelers
  • Fixed deposits over Rs. 50,000
  • Post-office fixed deposit that exceeds Rs. 50,000
  • Sale or purchase of securities that exceed Rs. 10,00,000
  • While opening a bank account
  • Payments exceeding Rs. 25,000 in restaurants
  • Application for availing a SIM card for cellular network

How to Apply for Form 61 Online?

  • Register for the Income Tax Department Reporting Entity Identification Number(ITDREIN) at the e-filing portal
  • The applicant is expected to use the same credentials as used for filing an income tax return
  • Click on the reporting portal under my account for the first time registration
  • Necessary information like form type, address of the person and category is to be used
  • The details of the Principal Officer are to be entered
  • After the registration, ITDREIN will be generated automatically
  • The Principal Officer will be informed via SMS on the registered mobile number.

How to Apply for Form 61 Offline?

For the offline application for form 61, the applicant can avail the form from the bank and fill up the details in the form correctly. The supporting documents are to be enclosed with the application form.

Procedure for Filling Form 61

The following instructions should be kept in mind before filling up the Form 61.

  • The full name and address of the declarant should be known
  • In the case of individuals, the date of birth of the declarant and name of father should be known
  • The full address of the declarant with the mobile number should be known
  • The particulars of the transaction and the number of transactions should be known
  • If the applicant is an assessee under the Income Tax Department, then the range, ward and circle as mentioned in the IT return should be filled
  • If an Aadhar card is issued, the 12 digit number should be provided
  • The date and acknowledgement of the PAN card application should be mentioned if not received.

Different Parts of Form 61A

Form 61A has two parts:

  • Part A which contains statement level information is common for all transaction types.
  • The report level information has to be reported in one of the following parts (depending on the transaction type): –
  • 1. Part B (Reporting of aggregated financial transactions by the person)

    2. Part C (Reporting of bank accounts)

    3. Part D (Reporting of immovable property transactions)

Documents Required for Form 61

  • Aadhaar Card
  • Driving License
  • Passport
  • Ration Card
  • ID proof from an accredited institution
  • Copy of the electricity bill or telephone bill
  • Any document issued by the Central Government, State Government or any local bodies.
  • Any documented proof related to the address mentioned in the form

Due Date for furnishing Form 61

Form 61 has to be received from 1st April to 30th September; the due date for the declaration is 31st October of the same year. If Form 61 is received from 1st October to 31st March the due date for the declaration is 30th April of the following financial year in which Form 61 is received.

Difference Between Form 60 and Form 61

Form 60 is the official document issued by the Income Tax Department for those individuals who don't possess a PAN Card but wish to enter into a financial transaction under rule 114B. Applicants who do not have a General Index Register Number but are willing to transact in cash will have to submit Form 60. Form 61 should be submitted by an individual whose income is only obtained by the agricultural department or from any employment and who does not earn any kind of income taxable. Income holders from the agricultural department who are willing to participate in the financial transaction are mandated to submit Form 61 under rule 114B.

Benefits of PAN Form 61

  • It helps the applicant to buy property
  • It enables the applicant to buy a vehicle
  • It is useful for the applicant while applying for opening a bank account
  • It can be used for availing a telephone connection
  • It can be used to pay bills at restaurants where the amount is more than a certain specified limit
  • It is useful when a fixed deposit is to be made in the banks or post offices
  • It is used for buying and selling securities

Submission of PAN Form 61

Form 61 has to be furnished to the Joint Director of Income Tax Department or Director of Income Tax Department through online submission of electronic data on the server that is specified for this purpose. From 9th April 2018, the registration process and the filing have been transferred to the portal.

What is ITDREIN?

ITDREIN stands for Income Tax Department Reporting Entity Identification Number and is used by the department to identify individuals who file such returns. Once the number is generated, it cannot be deactivated. The ITDREIN consists of 16 characters and is of the following format;

*********** YZNNN wherein,

* stands for the individual’s PAN or TAN number

Y stands for form Code

Z stands for reporting entity category, and

N stands for sequence number of the Code

Which are the Specified Financial Transactions?

  • It includes the Sale, purchase or exchange of goods, right, property, or interest in any property.
  • Works contract.
  • Providing services.
  • Any investment made or expenditure incurred.
  • Accepting any deposit or taking any loan

Conclusion

A PAN card is necessary to keep track of all financial transactions. If one doesn't possess a PAN number, they can declare Form 61 to make lump sum transactions. However, Form 61 can be filled by a candidate who earns only from the agricultural sector and has no other medium to taxable income. Provisioning online and offline submissions, the Income Tax Department has made it easy for individuals to declare Form 61.

FAQs

1. Can an individual without an Adhar card can submit Form 61?

Yes, it is possible to submit form 61 without an Adhar Card. Other documents such as PAN cards and voting cards can be used for the purpose of identification.

2. What happens if Form 61 has been filled with incorrect information?

If the form has been filled incorrectly, then The Income Tax AUthority has to be informed within 10 days of submission of the form. The government provides 30 days from the day of submission to rectify the details of the form.

3. Who can file form 61?

An individual who does not have a PAN card and has an agricultural income is expected to file form 61

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