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Form 60 is a declaration form used in India for individuals who do not have a Permanent Account Number (PAN) but need to carry out certain financial transactions. It serves as an alternative to providing a PAN when conducting specific transactions or opening certain accounts. It's important to note that while Form 60 allows individuals to carry out financial transactions without a PAN, it does not exempt them from tax liabilities. The individual is still responsible for fulfilling their tax obligations.
Form 60 is the declaration that is required to be filed by an individual or a person (except companies and firms) who does not have a permanent account no. (PAN) while entering into some specified transactions as per Rule 114B of the Income Tax Rules, 1962.
If your total income (other than agriculture) is more than the basic exemption limit then in such cases form 60 is not acceptable. In such a case, you can use Form 60 only if you have already applied for PAN and you must also mention the date of application in column 21 of the form.
Form 60 is available on the Income tax website and can be downloaded from here. It is required to be submitted to the person with whom you are entering into a specified transaction.
When you decide to enter into any transaction with a banking institution or deal in some sort of asset, a PAN card is the basic identity proof required.
But, there are still several people who do not possess PAN, or they might have already applied for PAN and are waiting for an allotment. Form 60 can be used in many cases instead of furnishing PAN by such people.
Other than tax authorities, PAN or Form 60, is required for a variety of transactions such as
| Nature of Transaction, | Value of Transaction |
|---|---|
| Sale or purchase of Motor Vehicle [other than two-wheeled vehicles], | Irrespective of value / Any Value |
| Opening a Bank account(other than basic savings deposit account) | Irrespective of value |
| Getting new Debit or Credit card | Irrespective of value |
| Opening DEMAT account | Irrespective of value |
| Payment to hotel or restaurant at one time | Cash payment exceeding Rs 50,000 |
| Travelling expenses to a foreign country or buying foreign currency at one time | Cash payment exceeding Rs 50,000 |
| Buying Mutual funds | Amount exceeding Rs 50,000 |
| Acquiring bonds or debentures | Amount exceeding Rs 50,000 |
| Acquiring bonds issued by RBI | Amount exceeding Rs 50,000 |
| Depositing money with (a) Bank (b) Post Office |
Cash exceeding Rs 50,000 in one day |
| Purchasing Bank Draft/ pay order/ banker’s cheque | Cash exceeding Rs 50,000 in one day |
| Time deposit (FD) with (a) Bank (b) Post Office (c) NBFC (d) Nidhi company |
Exceeding Rs 50,000 at a time or Rs 5,00,000 in a financial year |
| Life Insurance Premium | If amount exceeds Rs 50,000 in a FY |
| Trading in securities | Amount Exceeding Rs 1,00,000 per transaction |
| Trading in shares of unlisted company | Amount Exceeding Rs 1,00,000 per transaction |
| Sale or purchase of any immovable property | If the amount or registered value is Rs 10,00,000 or more |
| Buying and selling of goods and services | Exceeding Rs 2,00,000 per transaction |
Any person who needs to enter into any transaction with a banking institution, or deal in some sort of assets and who is not in possession of a PAN or might have already applied for a PAN card and is waiting for the same. Form 60 can be used in lieu of furnishing PAN by such people wherever required and allowed.
If you do not have any information to be disclosed in a particular column write - “Not Applicable”.
Some documents which are required to be annexed while submitting Form 60 are
There are many other proofs, a list of which can be found attached to Form 60.
If you have already filed Form 49A for allotment of PAN, you just need to render the application receipt and bank account summary of 3 months. No other documents from the list as specified above will be further needed.
Well, Form 60 is a recourse to furnishing PAN but NOT in every scenario. Form 60 is not and can never be a replacement for quoting PAN. It is just for the ease of users that the government has provided us some relaxation, for a particular class of transactions.
Every communication made to the income tax department is traced through your PAN whether it is filing a return, getting a refund, serving notices, or any other communication. In certain cases, the department lays mandatory requirements upon a person to possess PAN, these cases as per section 139A include
Complying with KYC requirement, even the prevailing E- KYC norms for e-commerce industry like Paytm, OLA, etc also require PAN.
Rule 114B of the Income Tax Act 1961 expressly provides that, if a minor enters into any of the above-specified transactions and he does not have income chargeable to tax, then the Minor can quote the PAN of his Father, Mother, or Guardian while entering into such contracts.
As per Rule 114B, Non Residents are required to quote PAN or file Form 60 only for a limited number of transactions, which are as under:
| Nature of Transaction | Value of Transaction |
|---|---|
| Sale or purchase of Motor Vehicle | Irrespective of value / Any Value |
| Opening a Bank account | Irrespective of value |
| Opening DEMAT account | Irrespective of value |
| Buying Mutual funds | Amount exceeding Rs 50,000 |
| Buying bonds or debentures | Amount exceeding Rs 50,000 |
| Depositing money with (a) Bank (b) Post Office |
Cash exceeding Rs 50,000 in one day |
| Time deposit (FD) with (a) Bank (b) Post Office (c) NBFC (d) Nidhi company |
Exceeding Rs 50,000 at a time or Rs 5,00,000 in a financial year |
| Life Insurance Premium | If amount exceeds Rs 50,000 in a FY |
| Trading in securities | Amount Exceeding Rs 1,00,000 per transaction |
| Trading in shares of unlisted company | Amount Exceeding Rs 1,00,000 per transaction |
| Sale or purchase of any immovable property | If amount or registered value is Rs 10,00,000 or more |
For remaining transactions like payments made to hotels and restaurants, getting debit or credit card, traveling expenses, etc. Non-Residents are not required to furnish PAN or Form 60 in lieu of PAN.
To the relief of the user, Form 60 can be submitted both online and offline. Offline i.e physical submission of Form 60 can be made to the concerned authority, after duly filling up the form. For eg. If you are submitting Form 60 as per Income Tax Act, then submit it to Tax Authorities or if you are filing Form 60 for opening a bank account submit it to the concerned bank.
The online procedure to file Form 60 with the Income Tax Department shall follow as under
By now we have discussed so many things about Form 60. You might be curious to know what form 60 actually looks like, is it too lengthy, is it a set of forms, or how it is actually!! WELL to rest all your queries, a simple one-page specimen of Form 60 has been annexed herewith. Form 60 Download
Any wrong declaration in Form 60 will make you entitled to repercussions under section 277 of the Income Tax Act 1961.
As per provisions of section 277, a person disclosing misleading or untrue information will be held liable as under
Yes, there are a few forms that are also related to PAN. A short description of these forms has been mentioned below:
49A - This Application form is used by Residents of India to obtain PAN and for correction of PAN.
49AA - Unlike 49A, this application form is used by Non-Residents (foreigners) or bodies incorporated outside India to obtain PAN in India.
These two forms are altogether different. Where Form 60 is used as a document in lieu of furnishing PAN for some financial transaction, Form 16 is issued by your employer, which enlists your components of salary, etc.
You can use Form 60 as many times as it is required. But, if you are subsequently furnishing Form 60 to the same person or authority, you can opt to disclose only the incremental information. Incremental information means the particulars which have changed after you filed Form 60 last time.
Form 60 is a boon for a person willing to enter into a financial transaction but was prevented to do so because he lacked PAN. Submitting this form online as per the recent changes made by CBDT has added to the benefits. So, you are well equipped to fire back someone, next they instruct you to get PAN just for the sake of opening a Bank account or alike things. To get in touch with the expert team of CA’s, Contact Us Now!!
Any wrong declaration in Form 60 will make you entitled to repercussions under section 277 of the Income Tax Act 1961.
As per provisions of section 277, a person disclosing misleading or untrue information will be held liable as under
NRI i.e., Non-resident Indians are exempt from quoting PAN numbers or from submitting Form 60 for certain transactions (specified above).
Rule 114B of Income Tax Act 1961 expressly provides that, if a minor enters into any of the above transactions and he/she does not have income chargeable to tax, then the Minor can quote PAN of his Father, Mother or Guardian while entering into such contracts.
Form 60 is a replacement of the PAN card for various transactions that are specified in rule 114B in various conditions. There is no limit stated for the usage of Form 60 for banking transactions. But the Form 60 is only valid for six years from the end of the financial year in which the transaction took place.
Any amount above Rs 50,000 to be submitted in a bank account is not allowed without a PAN card. Amounts below this limit can be submitted in a bank account without a PAN card.
As per Rule 114B, if a minor is involved in transactions as mentioned in Rule 114B, and does not have income chargeable to tax, then a minor can quote PAN of his father, mother, or any guardian and in any other case minor is required to fill Form 60.
Yes, Non-Resident Indians are required to furnish Form 60 in place of a PAN card. But Form 60 for NRIs is only valid for a few transactions mentioned in rule 114B.
