What is Form 60? When And Where It Is Required?

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    PAN or Permanent Account Number is a unique number assigned to a taxpayer and serves as an important proof of identity. The number links all of the information of the taxpayer such as taxes paid, outstanding arrears, refund issued, transactions undertaken, source of income etc. via the computer network. This is done to keep a track of transactions of financial nature which is aimed at checking and hence curbing tax evasion. The unique number is required to be quoted at a number of places such as while filing tax returns, opening bank account etc.

    What is Form 60? When And Where It Is Required?

    Nonetheless, in case you do not have a PAN or have applied for the same but the PAN has not been allotted as yet, the department of Income Tax requires you to furnish Form 60 in the absence of PAN. This is done to allow individuals to enter into various transactions even without PAN such that the dept. can take notice of the various transactions entered into by the concerned person.

    What is Form 60 and when it is to be submitted?

    Form 60 is a document to be submitted by an individual or any person not company or firm to undertake a financial transaction that requires quoting of PAN mandatorily but the concerned does not has a PAN.

    Here, we have listed out the different transactions that require submission of Form 60 in case the PAN is not held or allotted to the concerned individual.

    Nature of Transaction Transaction value
    Purchase or sale of any motor vehicle except two-wheeler Any value
    Purchase or sale of an immovable property Rs. 10 lakh or more
    Bank account opening except in case of basic savings deposit account. Any value
    Demat account opening Any value
    FD with any bank, NBFC, Post office Amount more than Rs. 50000 or in aggregate over Rs.5 lakh in a particular financial year
    Application for debit or credit card at a bank or other financial institution Any value
    Payments made in cash to hotel against bill Amount over Rs. 50,000 at one time
    Payment made in cash for the purchase of forex or in relation to travel to foreign nation Amount over Rs. 50,000 at one time
    Payment of a an insurance premium Amount over Rs. 50,000 in a year
    Sale or purchase of shares or contract for purchase or sale of securities If the amount exceeds Rs. 1 lakh per transaction
    Sale or purchase of goods and services other than listed above If the amount exceeds Rs. 2 lakh per transaction
    Mutual fund purchase Amount value exceeds Rs. 50,000

    How to fill and submit form 60?

    When filling form 60, one needs to give the reason as to why he or she does not has a PAN. In case you have applied for it, you need to specify that too. The name and full address of the declarant needs to be mentioned together with the nature of the transaction and transaction amount.

    Note, form 60 is to be submitted to the person or institution with whom the transaction is being undertaken. Say for eg: If you visit the bank to open a FD account of value over Rs. 50,000, you need to submit Form 60 in case you do not have PAN to the bank.

    Relevant documents to be submitted along with Form 60

    The documents which are accepted as identity and address proof need to be furnished along with form 60 and these include passport, DL, ration card, ID card issued by a recognized concern, telephone or electricity bill copy, a documentary evidence for address proof or any document issued by central or state government or any local body.

    Goodreturns.in

    Read more about: pan
    Story first published: Friday, July 20, 2018, 12:42 [IST]
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