Introduction
Form 60 is a crucial document that individuals need to provide in specific financial transactions when they don’t have a permanent account number (PAN). It is required by the Income Tax Rules of India for the purpose of taxation. PAN cards provide important information about taxpayers, such as their tax history, refunds, and pending taxes. However, in situations where an individual doesn’t possess a PAN card, Form 60 must be filled and submitted. In this blog post, we will discuss the features and requirements of Form 60, and how to fill and submit it in different transactions.
What is Form 60?
Form 60 is a declaration that must be furnished by individuals who don’t have a PAN card and are involved in transactions specified in Rule 114B of the Income Tax Rules, 1962. It is also required when a person has applied for PAN but the allotment is still pending.
Why Use Form 60?
The income tax provisions in India mandate that citizens obtain PAN for taxation purposes. PAN is necessary for individuals with taxable income, professions/businesses exceeding specified limits, and for specific transactions such as asset sale/purchase or income tax returns. However, some individuals may not possess a PAN card due to it not being compulsory or pending allotment. In such cases, Form 60 can be provided to execute important transactions, ensuring no tax evasion or fraud.
When is Form 60 Required?
- Sale or purchase of a motor vehicle (excluding two-wheelers and detachable side cars)
- Opening of a Demat account
- Sale or purchase of any immovable property (if value exceeds ₹10 lakh)
- Fixed deposit in a bank (exceeding ₹50,000)
- Post Office deposit (exceeding ₹50,000)
- Contract for sale or purchase of securities (exceeding ₹1 Lakh per transaction)
- Opening of a bank account with a financial institution or bank
- Applying for a debit or credit card
- Payment of hotel bills/restaurant or purchase of foreign travel or foreign currency (exceeding ₹50,000)
- Payment of mutual funds (exceeding ₹50,000)
- Premium payment of life insurance (if more than ₹50,000 in a year)
- Sale or purchase of shares of an unlisted company (exceeding ₹1 Lakh per transaction)
- Sale or purchase of goods/services not mentioned above (exceeding ₹2 Lakh per transaction)
Note: In the case of Indian minors investing in time deposits or opening savings accounts, the guardian’s PAN is mandatory. If PAN is not available, Form 60 must be provided.
Details to Fill Form 60
- Full name, including middle name and last name
- Birthdate in DD/MM/YYYY format
- Father’s full name, including middle name and last name
- Address according to official documents (Floor No, Room No, Name of premises/Flat, Block Name/Locality, Road/Lane/Street, City/Town, State, District, Pin code)
- Mobile Number and Telephone number (if any)
- Transaction amount
- Transaction date in DD/MM/YYYY format
- Name of every individual if the transaction is joint
- Transaction mode
- Aadhaar number
- PAN acknowledgement along with application date (if already applied)
- An estimate of total income for the financial year if PAN is not applied
- Identity proof document details
- Address proof document details
A declaration duly signed and dated must also be provided along with the form.
How to Download Form 60 PDF?
To download Form 60 in PDF format, follow these steps:
- Visit the official website of the Income Tax Department.
- Go to the “Forms/Download” option in the navigation menu.
- Select “Income Tax Forms” from the drop-down menu.
- Explore the list of forms and find “Form No. 60”.
- Click on the form to automatically download it to your system.
How to Submit PAN Form 60?
Form 60 should be submitted either in paper or online format to the establishment where the payment is being made. For example, when opening a bank account without PAN, a filled and self-attested copy of Form 60 should be submitted with the required documents. If you receive a PAN card during the process, inform the bank about it.
Structure of Form 60
The following details need to be provided in Form 60:
- Full name, middle name, and surname
- Date of birth in DD/MM/YYYY format
- Father’s first name, middle name, and surname
- Flat number or house number
- Floor number
- Name of the apartment or house
- Block name and number
- Street
- Locality or area
- City
- District
- State
- Pin code
- Telephone number along with the STD code
- Mobile number
- Transaction amount
- Date of the transaction in DD/MM/YYYY format
- Number of individuals involved in the transaction
- Mode of payment
- Aadhaar number
- Acknowledgement number for PAN application (if applicable)
- Estimate of total income for the financial year (if PAN is not applied)
- Details of the proof of identity and address
A signed declaration with the date should also be provided.
How to Fill Form 60?
Before filling out Form 60, gather the following details:
- Full name
- Residence address
- Date of birth and father’s name (for individuals)
- Mobile number and full address
- Transaction details (including amount)
- Place where income tax has been filed
- Aadhaar number
- Date of PAN application and acknowledgement number (if not received yet)
Supporting Documents to Submit Form 60
When PAN application is pending, the following documents must be submitted along with Form 60 as proof of identity and address:
- Aadhaar Card
- Driving License
- Passport
- Ration Card
- ID proof issued by an accredited institution
- Copy of telephone bill or electricity bill
- Any document issued by the State Government, Central Government, or a local body
- Document proof for the address notified in the form
If PAN application is pending, submission of the application proof is sufficient.
How and to Whom One Can Submit Form 60?
Form 60 can be submitted both offline and online. It should be given to the person or establishment with whom the transaction is being made.
Who Need Not Submit Form 60?
Form 60 does not need to be submitted by companies; it is required only from individuals for transactions specified in Rule 114B.
Essentials of Form 60
Form 60 is essential for the following transactions:
- Sale or purchase of immovable property valued over ₹5 lakh
- Sale or purchase of motor vehicles (excluding two-wheelers and detachable side cars)
- Fixed deposit accounts in banks (₹50,000 or above)
- Deposits in Post Office savings accounts (₹50,000 or above)
- Contracts valued at ₹10 lakh or more for sale or purchase
- Application for telephone connections, including mobile
- Payments to hotels or restaurants exceeding ₹25,000
Results of Wrong Declaration
It is crucial to provide accurate information while signing the declaration in Form 60. False information can lead to imprisonment for 3 months to 2 years, along with additional fines. For false declarations involving amounts over ₹25 lakh, imprisonment and fines can be imposed. Compliance with the rules and truthful disclosure are essential to avoid legal complications.
Frequently Asked Questions (FAQs)
Q: What is a Form 60 Declaration?
A: Form 60 is a declaration form that individuals have to submit when they don’t possess a permanent account number and are involved in transactions mentioned in Rule 114B.
Q: What is the Validity of Form 60?
A: The validity of Form 60 is considered in the banking sector.
Q: Can Form 60 be filed by a company?
A: No, Form 60 cannot be filed by a company.
Q: Is Form 60 required for NRI?
A: Form 60 has to be filed by an NRI if they do not have a permanent account number.
Q: Is Form 60 Required to Make a Fixed Deposit?
A: Submitting Form 60 is mandatory for making a fixed deposit of an amount that exceeds ₹50,000.
Q: What is the Form 60 Download Process?
A: Form 60 can be downloaded from the official website of the Income Tax Department.
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