When an individual engaged in specific transactions prescribed under Rule 114B of the Income Tax Act, 1962, but does not have a PAN number, then they have to complete Form 60.
In India, it is compulsory for the citizens of a country to have Permanent Account Number (PAN), if they belong to the group of Income-Earning and are running any form of financial transactions. In case, if PAN number is not possessed by individuals then they are required to file Form to the related authority while performing any financial transactions. In the banking sector, as per section 114B of the Income Tax Act, 1962, Form 60 PAN cards have legal validity.
Form 60 is considered as a substitute of PAN Card is a declaration form in which it is required by the applicant to offer detailed information that includes name and address. Apart from this, it is also required by the applicant to provide the causes of not having a PAN card. This article explains some significant information about Form 60.
What is Form 60 of Income Tax Act
A person who is engaged in the specific transactions prescribed in Rule 114B of the Income Tax Rule, 1962 and does not have PAN then they are required to submit Form 60 as a declaration. The transactions have been specifically listed in the rules for which there is a requirement of PAN. According to the provisions provided under section 139A of the Income Tax Act, 1962 any individual who is entering into a transaction with the banking institution not holding PAN has to file PAN Form 60. In India, it is compulsory for a person to have a PAN card if they desire to enter into some financial transaction.
Requirement of filing
In the following situation, it is required by person to submit Form 60 if they do not have PAN –
- In each transaction the value of the immovable property is at least ₹ 500,000.
- If you are engaged in purchasing and selling any automobile. Though, you will not require showing Form at the time of purchasing or selling two-wheelers, but there is a requirement to give Form 60 at the time of purchasing or selling of detachable sidecars.
- If the amount of fixed deposit in any bank is minimum ₹ 50,000
- If a person deposits at least ₹ 50,000 in a savings account of the post office.
- If a person engaged in contract for purchasing or selling of securities of the amount ₹ 10, 00,000.
- If a person wants to open an account with any bank or financial institution.
- If a person wants to take a telephone connection.
- If the bill amount in any hotel and restaurant is higher than ₹25,000 at one time.
Essential documents
Prior to filing Form 60, it is expected by individuals to provide one of the following documents prescribed below for offering identity proof or address proof along with Form 60. Documents are –
- Driving license copy
- Passport’s copy
- Ration Card’s copy
- Electricity or telephone bill’s copy
- ID proof of any approved institution
- Any other document demonstrating residential address issued by the state government, central government or any local body.
- Any certified copy connected to the address provided in the form
Process of filing of Form 60 of Income Tax Act
It is essential to recognize entire information prior to initiating filing of Form rather than of PAN card. One shall maintain the entire required notes in mind prior to filing and submission of Form 60 such as –
- Name of the applicant
- Address of the applicant
- Proper address of applicant along with mobile number
- Information regarding the financial transaction and the involved amount
- If a person has tax liability then they are required to provide details of Range, Ward or Circle in which they had filed income tax.
- Provide number of Aadhaar card
- Date of filing application of PAN card and the acknowledgment number of PAN card, if person applied for PAN card but still not received.
Optimize tax outcomes – our Income Tax Calculator is your tool for informed decisions.
Submission of Form 60
Subsequent to filing of all the needed details and information in the form in careful manner, a Person could simply furnish it to the concerned authority prior executing any financial transactions. This would confirm the presence of advantages and proof in which one is involved in financial transactions.
Ways to submit Form 60
The declaration made in Form could be filed in online or offline manner as per the convenience by the applicant. For example, at the time of opening of bank account when you do not possess PAN card then you are required to submit Form duly filled and signed along with some associate documents in the bank. In case, if a PAN card is received by you in the course of procedure, you are required to provide information to the bank in which the savings account has been opened.
Conclusion
Form 60 is referred to as the declaration made by an individual or any person except any firm or company who does not possess PAN number and who engages in any transaction prescribed in rule 114B. Therefore, any person not having PAN while engaging into a particular transaction shall submit Form 60. If you want to know more about Form 60, how it is filed, when it should be filed, and some related information, then contact Vakilsearch.
FAQs
Who is required to file Form 60?
Form 60 is required to be filed by individuals who do not have a PAN card and engage in financial transactions that require quoting PAN.
What is Form 60 and 61 declaration?
Form 60 and Form 61 are declarations made by individuals without a PAN for specific financial transactions, where PAN details are mandatory.
Why is Form 60 required by RTO?
The RTO requires Form 60 to monitor high-value vehicle purchases and registration, ensuring compliance and transparency in transactions.
How can I download Form 60 from the income tax site?
To download Form 60 from the income tax site, visit the official website, navigate to forms, select Form 60, and download the PDF version for filling and submission.
What is the Form 60 explanation?
Form 60 is a declaration for individuals who do not possess a PAN card, providing personal and financial information necessary for various transactions, as mandated by the Income Tax Department.
What is Form 60 vs Form 16?
Form 60 is for individuals without a PAN, declaring their financial transactions. Form 16, on the other hand, is a certificate of tax deduction by an employer for salaried employees.
What is the validity of form 60?
The validity of Form 60 is for a specific transaction or for six months, whichever is earlier, from the date of its submission.
What are the features of form 60?
Form 60 features personal and financial details of the individual, reasons for not having a PAN, and the purpose for which the form is being submitted.
Who is eligible for form 61?
Form 61 is meant for individuals eligible to apply for a PAN but choose not to, providing their details to the concerned authorities.
What is a form 60 working certificate?
Form 60 working certificate is a declaration by an individual stating that they do not possess a PAN and providing necessary details for a particular transaction.
What is the rule of Form 60?
Form 60 is a rule mandated by the Income Tax Department, requiring individuals without a PAN to submit their details for specific financial transactions.
What is Form 60 PDF?
Form 60 PDF is the digital version of Form 60 that can be downloaded from the official Income Tax Department website for offline submission.
What is the difference between Form 16 and 26AS?
Form 16 provides a summary of tax deducted by an employer, while Form 26AS is a consolidated tax statement showing all tax-related information for an individual.
Is TDS and Form 16 same?
TDS (Tax Deducted at Source) is a tax collection mechanism, and Form 16 is a certificate issued by the employer to the employee summarising TDS deductions made during the year.
What is Form 16A?
Form 16A is a certificate issued for tax deducted at source (TDS) on income other than salary, such as interest, commission, or brokerage.
What is Form 15G and 15H?
Forms 15G and 15H are self-declaration forms submitted by individuals to the bank requesting no deduction or lower TDS deduction on interest income, provided they meet specified criteria.
Read more:
