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Form No. 60 of Income Tax Act

Last Update Date : April 29, 2019
Estimated Read Time: 6 min

form 60 of Income Tax Act

Permanent Account Number or PAN, as it is commonly called, is a means of identifying various taxpayers in the country. PAN is a unique identification number assigned to taxpayers in India and it helps in linking all information pertaining to a particular taxpayer (for example taxes paid, refunds issued, outstanding arrears, income disclosed, transactions entered etc.) through the computer system. This is intended to track financial transactions of taxpayers and in turn, prevent tax frauds and tax evasion.

What is Form 60?

Form 60 is a declaration to be filed by an individual or any person not being company or firm to carry out financial transactions that mandate quoting of PAN when

  • a person does not have PAN/ not obtained PAN or
  • a person has applied for PAN but allotment is pending

It should be noted that in case total income of the person entering into transaction exceeds maximum amount not chargeable to tax in the year of the transaction, Form 60 is acceptable only when a person has applied for PAN but allotment is pending.

Why Form 60 is Required?

As per the provisions of Income Tax, it is mandatory to obtain PAN for specified persons such as persons having taxable income, persons carrying on business / profession with a turnover exceeding specified limit etc. Further, it is also necessary to quote PAN in various documents i.e., income tax return, any correspondence with income tax department, documents pertaining to certain transactions which are mentioned in Rule 114B of Income-tax rules, 1962 which includes sale and purchase of asset etc.

It is possible that a person may not be holding PAN or has applied for PAN but not yet been allotted the same. However, ideally, the absence of a PAN should not be a reason restricting an individual from entering into certain transactions or make it challenging for the income tax authorities to track financial transactions to prevent tax evasion/frauds. In such scenarios, Form 60 can be submitted along with relevant supporting documents to carry out the transaction.

Below is the list of Transactions in which Form 60 can be produced in absence of a PAN:

Sr. No.Nature of TransactionValue of Transaction
1.Purchase or sale of any motor vehicle excluding two-wheelersAll such transactions
2.Opening of bank account other than saving deposit account with a banking company or a co-operative bankAll such transactions
3.Application for issue of debit / credit cardAll such transactions
4.Opening of DEMAT accountAll such transactions
5.Payment to restaurants or hotels in cash against the billsExceeding Rs 50,000 at one time
6.Payment in cash in connection with travel to any foreign country or payment in cash for purchase of any foreign currency at any one timeExceeding Rs 50,000
7.Payment to a Mutual Fund for purchase of its unitsExceeding Rs 50,000
8.Payment to a company or institution for acquiring debentures or bonds issued by itExceeding Rs 50,000
9.Payment to RBI for acquiring bonds issued by itExceeding Rs 50,000
10.Deposit with

i)                    bank or co-operative bank or

ii)                  post office

i)  Exceeding Rs 50,000 for one day

ii)   Aggregating to more than 2,50,000 during 09/11/2016 to 30/12/2016

11.Purchase of bank draft or pay order or banker’s cheque in cash from bank or co-operative bank in one dayExceeding Rs 50,000
12.A time deposit with a banking company or a co-operative bank, a post office, a Nidhi or a non-banking financial institutionExceeding Rs 50,000 or aggregating to more than Rs 5,00,000 during a financial year
13.Payment for one or more pre-paid instrumentsaggregating to more than Rs 50,000 during a financial year
14.Payment of Life Insurance premiumaggregating to more than Rs 50,000 during a financial year
15.A contract for sale or purchase of securitiesExceeding Rs 1,00,000 per transaction
16.Sale or purchase of unlisted shares of a companyExceeding Rs 1,00,000 per transaction
17.Sale or purchase of any immovable property.

 

Exceeding Rs 10,00,000 or valued by stamp valuation authorities exceeding Rs 10,00,000
18.Sale or purchase of any goods or services other than the aboveExceeding Rs 2,00,000 per transaction

Transaction by a Minor

In case of a minor entering into a transaction requiring quoting of a PAN; the PAN of his father or mother or the guardian or Form 60 as the case may be must be provided along with the application.

How to Submit Form 60 and to Whom?

Declaration in Form 60 can be submitted either in paper form or online. It is to be submitted to the person with whom the transaction is being entered into. Non-residents are exempt from quoting of PAN/submission of Form 60 for few of the transactions specified above, such as while applying for credit or debit card, payment to restaurants or hotels against bill etc.

Documents to be Submitted along with Form 60

When a person has not applied for PAN, then a copy of following documents which serve as identity proof/address proof need to be submitted along with Form 60.

  • Aadhar card
  • Driving License
  • Passport
  • Ration Card
  • ID proof from an accredited institution
  • Copy of the electricity bill or telephone bill
  • Any document issued by Central Government, State Government or any local bodies
  • Any documentary proof related to the address mentioned in the form.

If PAN is applied for and allotment is pending, only proof of submission of application would suffice.

[ Read: How to Apply for PAN Card ]

Form 60 Format and How to Fill It?

Form 60 New Format

Click here to download Form 60 New Format

The following information requires to be filled in Form 60:

  • Full address and name of declarant along with the date of birth
  • Particulars related to the transaction for which you are filling the Form 60 For example, amount, date of the transaction, name of the joint holder, if any, mode of transaction
  • In case you are assessed to Income Tax, mention the details of the Range, Circle or Ward where you had filed the last return of income
  • If PAN is applied and allotment is pending, you have to mention the date of application and acknowledgement number of the same
  • If PAN is not applied, you have to enter your estimated income for the financial year in which above transaction is held
  • Details of documents to be submitted as identity proof and address proof
  • Also, note that mismatch of the particulars, with the supporting documents, will lead to cancellation of the form and requires resubmission.

Consequences of Wrong Declaration

One must be careful before signing the declaration in Form 60 as any false information in the statement may have rigorous consequences. Imprisonment between 3 months to 2 years with a fine can be imposed and if the amount involved is greater than Rs 25 lakhs, imprisonment between 6 months to 7 years with a fine can be imposed for false declaration made.

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Niteesh Singh
Niteesh is a Tax Researcher and Content Lead at H&R Block (India). He holds an MBA with a specialisation in BFSI domain. In his career spanning over six years, he has helped thousands of people understand taxes in a simple and effective manner. Outside work, Niteesh is an astronomy geek who is also involved in wildlife conservation activities.

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