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Form 60: Declaration to be filed by a person who does not have a PAN and enters transactions specified in Rule 114B

The Permanent Account Number (PAN) is one of the most important documents issued by the Income Tax Department of India. It is a combination of alphanumeric unique identification number for individuals and businesses. It is required as a proof of identity identity of individuals or businesses while entering into various financial or legal transactions in the country. 

 

However, what if the person does not hold a PAN and still wants to conduct certain financial transactions? Is there any backup for PAN under the Income Tax Act, 1961? Well, the answer is yes. Form 60 is the backup option of PAN that can be submitted by specific persons while entering into certain financial transactions. This article covers all aspects of Form 60 in a detailed manner. Let’s read!

What is Form 60?

Form 60 is a declaration that must be filed by a person (not being a company or a firm) or a foreign company covered under the third provision of Rule 114B of the Income Tax Rules, 1962. Such a person or a foreign company does not have a Permanent Account Number (PAN) but engages in the transactions mentioned in Rule 114B. Therefore, a Hindu Undivided Family (HUF), Association of Persons (AOPs), Body of Individuals (BOIs), Local Authorities, or Artificial Juridical Person (AJP), can issue Form 60 in the absence of PAN for transactions.

Rule 114B

According to Rule 114B of the Income Tax Rules, 1962, every person should enter his PAN in all the documents related to the transactions entered into by him mentioned under the said Rule. If such person is a minor and does not have any income chargeable to tax, then the PAN of his father, mother, or guardian, should be quoted in the document relevant to the transaction entered into by him.

 

In the absence of PAN, such person shall make a declaration in Form 60 providing the details of such transactions mentioned under Rule 114B. The Form 60 can be filed either physically or electronically.

 

Form 60 can also be submitted by a foreign company entering into the transactions mentioned in Rule 114B provided: such company does not have any income chargeable to tax in India; and does not have a PAN.

 

The provisions of Rule 114B is not applicable to the following class of persons:

  • The Central Government or the State Government, and the Consular Offices;

  • The Non-Residents referred to in Section 2(30) of the Income Tax Act, 1961.

Transactions for which Form 60 is Required

Following transactions are listed under Rule 114B for which Form 60 is to be submitted in the absence of PAN:

Nature of Transaction
Value of Transaction
Sale or purchase of motor vehicles.
All transactions
Opening an account with a Bank or Co-operative Bank, other than a time deposit account
All transactions
Applying for credit or debit card with the Bank or Co-operative Bank.
All transactions
Applying for a DEMAT account with the depository participant.
All transactions
Making payment at any one time to a hotel or restaurant
Cash payment in excess of INR 50,000
Making payment at any one time with respect to travel to foreign country or for purchase of foreign currency.
Cash payment in excess of INR 50,000
Payment towards the purchase of mutual funds units.
In excess of INR 50,000
Payment towards the debentures or bonds issued by the company or an institution.
In excess of INR 50,000
Payment towards acquisition of RBI bonds.
In excess of INR 50,000
Depositing cash at any one day with the Bank or Co-operative Bank or Post Office.
In excess of INR 50,000
Purchasing bank drafts, pay orders or banker’s cheque from a Bank or Co-operative Bank.
Cash payment in excess of INR 50,000
Time deposit with Bank or Co-operative Bank, Post Office, Nidhi Company, NBFC.
In excess of INR 50,000 or aggregating over INR 5,00,000 during the financial year
Making payment to a Bank or Co-operative Bank towards pre-paid payment instruments, such as mobile wallets.
Payment in cash or bank draft or banker’s cheque of value aggregating over INR 50,000 during the financial year
Payment towards life insurance premium.
Amount aggregating over INR 50,000 during the financial year
A contract for sale or purchase of securities except shares.
In excess of INR 1,00,000 per transaction
Sale or purchase of shares of a company not listed on a recognized stock exchange
In excess of INR 1,00,000 per transaction
Sale or purchase of shares of an immovable property.
In excess of INR 10,00,000 or Stamp Duty Value (SDV) as per Section 50C, in excess of INR 10,00,000
Sale or purchase of goods or services other than those mentioned above.
In excess of INR 2,00,000 per transaction

Content of Form 60

The Form 60 is subdivided into 25 parts, each having its significance and importance. The content of Form 60 usually includes the following:

  • Part 1: Applicant’s name including middle name and surname.

  • Part 2: Date of birth in case of an individual and date of incorporation in case the applicant is other than individual.

  • Part 3: In case the applicant is an individual, the name of the father including middle name and surname should be specified.

  • Part 4 to 13: Address of the applicant in detail.

  • Part 14 to 15: Telephone or Mobile number.

  • Part 16: Taxpayer Identification Number of the country of residence.

  • Part 17: Amount of transaction.

  • Part 18: Date of transaction.

  • Part 19: Number of persons involved in the transaction, in case of transaction in joint names.

  • Part 20: Mode of transaction whether cash, cheque, card, online transfer, and so on.

  • Part 21: Aadhaar Number issued by UIDAI

  • Part 22: Date and acknowledgement number if PAN application is made.

  • Part 23: Details of estimated total income for the financial year in which the transaction is entered into, if PAN application is not made.

  • Part 24: Details of document attached for the proof of identity.

  • Part 25: Details of document attached for the proof of address.

How to Download Form 60 in PDF?

To download the Form 60 in PDF version, these steps should be followed:

Step 2: Navigate to the ‘Tax Laws & Rules’ tab.

Step 3: Under the subsection ‘Forms/Downloads’, select ‘Income Tax Forms’.

Step 4: Options to download the form in pdf format or fillable type are available to choose from.

How to Submit Form 60?

Form 60 can be submitted online as well as offline. It is to be submitted to the concerned entity with whom the transaction is being entered into. For instance, if an individual wants to open a bank account but does not have a PAN, a duly filled and signed Form 60 can be submitted to such banking authority along with all the proof, as applicable.

Consequences of Incorrect Information in Form 60

Submission of an incorrect or false information in Form 60 shall have the following consequences:

Value of Transaction
Consequences
Less than INR 25 Lakh
Imprisonment for 3 months to 2 years or with the fine or both.
More than INR 25 Lakh
Imprisonment for 6 months to 7 years and fine.

Frequently asked questions

Q

 What is Form 60?

A

Form 60 is a declaration that is required to be submitted in lieu of PAN in case of a certain specified transaction. The list of transactions and eligible persons who can issue Form 60 are specified in Rule 114B of the Income Tax Rules, 1962.

Q

When can Form 60 be issued?

A

Form 60 can be issued under certain specified circumstances mentioned under Rule 114B of the Income Tax Rules, 1962, whereby the applicant does not have a PAN.

Q

List the persons who can issue Form 60?

A

As per Rule 114B, following persons can issue Form 60:

  • A person (excluding),

  • Foreign company,

  • A Hindu Undivided Family (HUF), 

  • Association of Persons (AOPs), 

  • Body of Individuals (BOIs), 

  • Local Authorities, or 

  • Artificial Juridical Person (AJP).

Q

 List a few documents that should be annexed along with Form 60?

A

For the proof of identity and the proof of address following is the list of few documents that may be attached by the applicant of Form 60:

  • Aadhaar card

  • Bank or post office passbook with the photograph of the person

  • Ration card with the photograph of the person

  • Elector’s photo identity card

  • Driving license

  • Passport

  • Kissan passbook with the photograph of the person

  • Electricity bill, not more than 3 months old

  • Water bill, not more than 3 months old

  • Bank statement, not more than 3 months old

  • Credit card statement, not more than 3 months old

Q

For an Association of Persons (AOP) or Body of Individuals (BOI) or Local Authority or Artificial Juridical Person (AJP), which documents should be attached along with Form 60?

A

In case the applicant of Form 60 is an AOP or BOI or local authority or AJP, a copy of an agreement or certificate of registration can be attached. However, such agreement or certificate of registration should be issued by the Charity Commissioner, Registrar of Co-operative Societies, or any other competent authority. Moreover, any other type of a document as issued by the Central or the State Government proving the identity of the person and the address can also be attached.

Q

Which document should be attached by the Trust while submitting Form 60?

A

In case of a Trust, the trust deed or the registration certificate as issued by the Charity Commissioner should be attached while submitting Form 60.

Q

Can a Form 60 application be made jointly? If yes, where such details are provided in Form 60?

A

A joint application can be submitted in Form 60. The details such as total number of persons involved in the transaction and the amount of transaction must be entered in Column 19 and Column 17 respectively.

Q

What is the validity period of Form 60?

A

A Form 60 is valid for the period of 6 years from the end of the financial year when the transaction has been completed.

Q

Is there a restriction on the number of times Form 60 can be used by an individual?

A

There is no restriction on the usage of Form 60. A person can use Form 60 as many times as he needs. However, if the person is submitting Form 60 to the same authority or person subsequently, only incremental information can be provided.

Prachi Jain

Chartered Accountant

Prachi Jain is a Chartered Accountant with a passion for simplifying finance and tax-related matters through her insightful and informative blogs. With a background in finance and a deep understanding of tax regulations, Prachi has established herself as a trusted source of financial wisdom. Prachi is committed to empowering her readers with the knowledge they need to make informed financial decisions. Her expertise and dedication shine through in every blog post, helping her audience navigate the intricacies of finance and taxes with confidence. Follow Prachi Jain's blog for practical insights and guidance on managing your finances effectively.

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