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written by | September 20, 2022

What Does Form 60 Mean? Declaration & Online Filing

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When a person engages in certain transactions listed in Rule 114B of the Income-tax Rules, 1962, but does not possess a permanent account number, they must complete Form 60, which in this case is a necessary form.

PAN cards facilitate taxpayer identification and offer data on total taxes paid, unpaid taxes, refunds, etc. The Central Government mandates a Permanent Account Number (PAN) for several transactions, which helps track illicit transactions, tax frauds, and tax evasion.

Did you know? 

If foreigners want to invest in India or conduct business here, then PAN is also a crucial document for them. 

What is a Form 60? 

Individuals who engage in a particular transaction listed in Rule 114B of the Income-tax Rules, 1962 but do not possess a PAN must file Form 60 as a declaration. The Income Tax Act expressly lists the transactions for which a PAN is required.

When is Form 60 Required?

You must file Form 60 if you don't have a PAN card. The critical components of Form 60 are listed below for your knowledge. For the circumstances listed below, you must present a Form 60:

  • In every transaction involving an immovable property worth at least ₹ 5 lakh.
  • If you buy or sell any automobiles. Although you won't need to present Form 60 when buying or selling two-wheelers, you will need to do so while buying or selling detachable sidecars.
  • Any bank's fixed deposit account with a balance of at least ₹ 50,000.
  • If you have placed a deposit into a post office savings bank account, you are totalling at least ₹ 50,000.
  • Contract for the purchase or sale of securities that is worth at least ₹ 10 lakh or above. 
  • Whenever you open an account at a bank or a lending organisation.
  • If you requested the activation of a phone line, including a mobile phone.
  • Payments that are made to hotels or restaurants in response to a single bill for an amount of at least ₹ 25,000.

Note: Please be aware that the above table is being used merely as information. Please visit the Income Tax department's official website to learn more about the transactions for which a PAN is required.

The PAN of the guardian must be included with the application if a minor in India wants to open a savings account or invest in a time deposit. In the absence of PAN, Form 60 must be submitted.

Also Read: Online Professional Tax Registration in India

Data Needed to Complete Form 60

Form 60 is divided into 24 sections. Before submitting it, Form 60 must have 20 items filled in. The composition of these sections is as follows:

  • Section one includes First Name, Middle Name, and Surname. 
  • Section two includes the birthdate in the format DDMMYYYY.
  • Section three includes First Name, Middle Name, and Surname of the Father
  • Sections four to thirteen include the following information about the address: Flat/Room No., Floor No., Name of Property, Block No., Road/Street/Lane, Area/ Locality, Town/City, District, State, Pin code.
  • Sections fourteen to fifteen include Telephone and Cell Phone number
  • Section sixteen includes the payment amount
  • Section seventeen includes the Transaction date in the DDMMYYYY manner. 
  • Section eighteen includes all parties' names in the event of joint transactions
  • Section nineteen includes the Transaction method
  • Section twenty includes the Aadhaar number if present. 
  • Section twenty-one includes the Acknowledgement and date of PAN application if one was made.
  • Section twenty-two includes the expected overall revenue for the fiscal year, assuming no PAN is used.
  • Section twenty-three includes the information about the identity proof document
  • And finally, section twenty-four includes the address proof document information

How Can you Access Form 60? 

Form 60 is available on the official website of the Income Tax Department. To access the PDF version of Form 60, complete the directions below:

  •  The first step is to visit the Income Tax Department's official website.
  • The second step is to select "Forms/Download" In the top navigation menu.  
  • The third step is to click on the "Income Tax Forms" in the drop-down list.
  • Following the third step, You will be taken to a section with various income tax forms.
  • You need to keep scrolling down the list until you see "Form No.60."
  • In the final step, you need to choose the document, and your computer will download it immediately.

Form 60 Online Filing & Offline Filing

Form 60 can be submitted online and offline, which is excellent news for users. After properly completing the form, Form 60 may be submitted offline or physically to the appropriate authority. For instance, if you complete Form 60 by the Income Tax Act, send it to the relevant tax authority. Likewise, if you complete Form 60 to open a bank account, send it to the right bank.

Form 60 declaration must be given to the organisation with which the transaction is being executed, either online or on paper. To open a bank account without a PAN card, you must give the bank a duly completed and signed copy of Form 60 and any necessary supporting documentation. Also, check with the bank where you started the savings account is notified if you obtain a PAN card during this exercise.

The following is the online process to submit Form 60 to the Income Tax Department:

  1. You can conduct an electronic verification using this website: https://report.insight.gov.in/reporting-webapp/portal/homePage.

OR 

  1. You can also conduct an electronic verification utilising specific Aadhaar-required authentications:
  • Using OTP on your AADHAAR-linked mail address or mobile number.
  • Using a biometric method, such as a fingerprint or iris scan of the subject's eye.
  • OTP combined with biometric modalities or two-way authentication
  • Alternatively, use an OTP, fingerprint, and iris all at once.

Also Read: All About Tax Deducted At Source

Form 60 & PAN Card

Form 60 is a method for providing PAN, although it is NOT always replaceable, and form 60 is not and never will be a substitute for giving a PAN. The government has given us certain leeway for specific transactions merely for users' convenience.

Your PAN tracks all communications with the income tax department, including those for issuing notices, filing returns, and receiving refunds. According to section 139A, the department may mandate that a person have a PAN in specific circumstances. Some of them are mentioned below :

  • When you submit more ITRs than what is allowed
  • Your annual revenue from your profession or business surpasses 5,00,000
  • A resident who engages in financial transactions of at least Rs. 2.5 lakhs with another person each year
  • Every CEO, Director, HUF Karta, Partner, etc.
  • An individual who files an I.T. return under Section 139 (4A)
  • Employers who are required to submit ITR if they provide fringe benefits
  • Even the current E- KYC standards for the e-commerce sector, such as Paytm, OLA, etc., also require PAN compliance with the KYC criteria.

False Declaration in Form 60 

Before you sign any of the statements on Form 60, you should exercise extreme caution since any false information could result in legal repercussions.

That is, if any incorrect information is provided on the application form, it may result in a sentence of three months to two years in prison. Nevertheless, if the sum engaged surpasses Rs 25 Lakhs, a false declaration may result in a prison sentence of up to seven years and a fine.

Also Read: Income tax Calculator - Calculate Your Taxes For FY 2021-22 Use Tax Calculator Online

Conclusion:

In this article, we learned about Form 60 for individuals who engage in a particular transaction listed in Rule 114B of the Income-tax Rules but do not possess a PAN. We learned about the information you need to have to fill out Form 60 and how to access and submit Form 60. 

It's important to note that Form 60, however, is not a permanent replacement for PAN, and if not filled correctly, you can face extreme repercussions, including imprisonment! For someone who wants to engage in a particular transaction but cannot do so due to a lack of a PAN, Form 60 can be viewed as a blessing. Additionally, the advantages and ease of submitting the form online have been strengthened by the most recent CBDT modifications.
Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: What are the repercussions of making a false statement on Form 60?

Ans:

A Form 60 declaration making a false statement can result in three months to two years in jail. Along with the sentence, a fine may also be levied.

Q: Is a PAN or Form 60 required to create actual savings account with a bank?

Ans:

A PAN or a Form 60 must be provided to open any basic savings account.

Q: How many times may we do banking transactions using Form 60?

Ans:

For different transactions outlined in rule 114B under various circumstances, Form 60 is a substitute for the PAN card. The extent to which Form 60 may be used in banking transactions is not specified. Form 60, however, is only suitable for six years following the end of the fiscal year during which the transaction occurred.

Q: What happens if a minor engages in a transaction that calls for a PAN?

Ans:

According to Rule 114B of the Income Tax Act of 1961, if a minor engages in any of the activities above and does not have income subject to tax, the minor may use the PAN of his father, mother, or guardian to engage in such transactions.

Q: Who is exempt from submitting Form 60?

Ans:

Non-resident Indians, or NRIs, are excluded from providing their PAN number or filing Form 60 for certain operations.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.