FORM 60

FORM 60

Form 60 acts as a substitute of PAN Card. It is an essential document that is submitted when a person does not have a Permanent Account Number (PAN) and does a financial transaction. It is considered as a legal validity under section 114B of the Income Tax Act 1962.

Here 2 scenarios are mentioned. Form 60 is applicable in the 2nd scenario

• The concerned person does not hold a PAN card (not applied for)
• That particular person has applied for PAN but allotment is pending

Benefits of Form 60

Form 60 is required when an individual does not possess a PAN card and wants to get into financial transactions mentioned below:

• Sale or purchase of a stable property that has a cost of Rs.5 lakh or above.
• Purchase or sale of any motor vehicle. This suspends two-wheelers but adds detachable sidecars which possess wheels attached to the vehicle
• A fixed security amount that is more than Rs.50,000 with any bank holder
• Any film or deposit that is more than Rs.50,000 in Post Office Savings bank account
• Any agreement that has a value of Rs.10 lakh or more for marketing or sale of the bonds
• Starting an account with any economic institution or bank
• Applying for the establishment of a phone or telephone connection, including mobile phone
• Payment to hotels or restaurants against the bills for any amount more than Rs.25,000 at one time

Above specified financial transactions are commonly made by individuals or on-individuals for which they require to maintain Form 60 if there is non-availability of the PAN card.

Checklist Requirements of Form 60 of Income Tax

The following information needs to be filled in Form 60:

• Full name and address of the declarant
• Details related to the transaction for which you are filling the Form 60. For instance, if the transaction is relating to starting a savings account with the bank, you need to specify in Form 60. You can mention the name of the bank and the transaction amount too. If it is not suitable then you can mention it as 'Not Applicable'.
• In case, you are imposed regarding income tax, specify the features of the scale, ward or circle where you had finished the last return of income.
• You must declare your reason for not holding a PAN card. Further, if you have applied for it and is yet to receive it, you must specify it in the form.

Additionally, note that the mismatch of the details with the supporting reports will lead to cancellation of the form and needs resubmission.

As per the income tax requirements, it is necessary to get PAN for a particular category of persons such as persons holding income liable to tax. Additionally, persons carrying on service/business with the turnover passing specified limit, etc. It is also important to quote PAN in many documents that are, any correspondence with the income tax department, income tax return, documents about specific activities such as sale and purchase of assets, etc.

If a person does not have a PAN because it is not compulsory or he may not have received it yet, it should not bar a person from performing certain transactions or make it challenging for the income tax officials. It might be to follow the financial events to check tax avoidance or fraud. In such situations, Form 60 can be presented along with appropriate supporting documents to carry out the transaction.

The below report gives the illustrative transactions that mandate requesting of PAN. Further, Form 60 must be furnished for these transactions when a concerned person does not have a PAN or has a pending PAN allotment.

In case of a minor getting into a transaction, the PAN of the guardian or Form 60 as the case must be given along with the form.

To submit Form 60, a declaration in Form 60 can be done either in paper form or online. Moreover, it is to be presented to the person with whom the event is being accessed.

Further, non-residents are excluded from demanding a PAN card or submission of Form 60 for a few of the events stipulated. For cases such as while applying for debit or credit card, payment to hotels or restaurants against bill, etc.

Documents required for Form 60 in Income Tax

A proof of the following records needs to be given along with Form 60. Further, it is only under a condition where PAN has been applied for, but allotment is pending. These cases serve as identity proof or address proof in the above-mentioned scenario that is where PAN is not applied for.

If PAN is applied for and allotment is pending, only proof of submission of the statement would serve.

• Ration Card
• Driving License
• ID proof from an accredited institution
• Passport
• Aadhar card
• Copy of the ( EB Bill) electricity bill or phone bill
• Any documentary evidence linked to the address specified in the form.
• Any document published by the state government, central government, or any local bodies.

FAQs on FORM 60

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