Form 60: Know, File, and Download Income Tax Declaration

In India, the Permanent Account Number (PAN) is a cornerstone of financial transactions and tax compliance. Issued by the Income Tax Department, it’s a mandatory requirement for a wide range of activities, from opening a bank account to purchasing property. But what happens if you don’t have a PAN card and still need to engage in these transactions? That’s where Form 60 comes into play. This declaration serves as a legal substitute for individuals who don’t possess a PAN, allowing them to carry out specified financial activities under the Income Tax Act, 1961.

If you’re new to the concept or seeking clarity on how Form 60 works, this guide is for you. We’ll explore what Form 60 is, its purpose, who needs to file it, how to fill it out, and where to download it. Plus, we’ll dive into its legal implications, related forms, and frequently asked questions to ensure you’re fully equipped with the knowledge you need. Let’s get started!

What Is Form 60?

Form 60 is a declaration form under the Income Tax Rules, 1962, specifically Rule 114B. It’s designed for individuals (not companies or firms) who do not have a PAN card but need to undertake certain financial transactions where quoting a PAN is mandatory. Essentially, it acts as a temporary substitute, allowing you to comply with legal requirements while you either apply for a PAN or operate without one under specific conditions.

The form requires you to provide personal details, transaction specifics, and a declaration that the information is accurate. It’s a critical tool for ensuring transparency in financial dealings, especially for those yet to obtain a PAN, such as minors, non-residents under certain exemptions, or individuals who haven’t applied for one yet.

Why Is Form 60 Important?

The Indian government mandates PAN for numerous transactions to track tax compliance and prevent evasion. However, not everyone has a PAN at all times—whether due to delays in issuance, ineligibility, or simply not having applied. Form 60 bridges this gap, ensuring that financial activities aren’t stalled while maintaining accountability under the tax system.

Failing to provide a PAN or Form 60 when required can halt transactions or attract penalties. Moreover, submitting false information in Form 60 can lead to severe consequences under Section 277 of the Income Tax Act, including imprisonment and fines. Thus, understanding and using Form 60 correctly is crucial.

When Is Form 60 Required?

Form 60 is tied to Rule 114B of the Income Tax Rules, which lists transactions where quoting a PAN is compulsory. If you don’t have a PAN, you must submit Form 60 instead. Here’s a detailed list of scenarios where it’s needed:

1. Banking Transactions:
   • Opening a bank account (other than a basic savings account).
   • Depositing cash exceeding Rs. 50,000 in a single day with a bank or cooperative bank.
   • Making a time deposit (fixed deposit) exceeding Rs. 50,000.
   • Purchasing bank drafts, pay orders, or banker’s cheques with cash over Rs. 50,000 in a day.
2. Property Transactions:
   • Buying or selling immovable property valued at Rs. 5 lakh or more.
3. Vehicle Transactions:
   • Purchasing or selling motor vehicles (excluding two-wheelers unless they have a detachable sidecar).
4. Securities and Investments:
   • Entering contracts for the sale or purchase of securities worth Rs. 10 lakh or more.
   • Opening a demat account with a depository participant.
5. Other Financial Activities:
   • Paying cash exceeding Rs. 50,000 to hotels or restaurants against a single bill.
   • Applying for a telephone connection (including mobile phones).
   • Paying Rs. 50,000 or more for life insurance premiums in a financial year.
   • Cash payments over Rs. 50,000 for bonds or debentures issued by the Reserve Bank of India.
6. Minors:
   • If a minor enters into any of these transactions and doesn’t have taxable income, they can use their parent’s or guardian’s PAN. If neither is available, Form 60 is required.

Exceptions to Form 60

• Non-Residents (NRIs): NRIs are exempt from quoting PAN or submitting Form 60 for certain transactions, like applying for debit/credit cards or paying hotel bills.
• Central/State Governments and Consular Offices: These entities are not required to comply with Rule 114B.

Who Can File Form 60?

Form 60 is available to specific categories of individuals under defined circumstances:

1. Individuals Without a PAN:
   • Anyone who hasn’t applied for or received a PAN but needs to perform a Rule 114B transaction.
2. Individuals Awaiting PAN Allotment:
   • If you’ve applied for a PAN but haven’t received it yet, you can file Form 60 with your PAN application acknowledgment number.
3. Minors:
   • Minors without taxable income can use Form 60 or their guardian’s PAN for applicable transactions.
4. Foreign Companies:
   • Foreign entities with no taxable income in India and no PAN can use Form 60 for Rule 114B transactions.

Who Cannot File Form 60?

• Companies and Firms: Form 60 is exclusively for individuals, not corporate entities or partnerships, as they receive a PAN upon incorporation.
• Individuals with Taxable Income Above Exemption Limit: If your income exceeds the basic exemption limit and you haven’t applied for a PAN, you must apply for one instead of relying on Form 60.

How to Fill Form 60: A Step-by-Step Guide

Filling out Form 60 is straightforward if you have the right information handy. The form consists of 25 sections, though not all may apply to every situation. Here’s a detailed breakdown:

Key Details to Include

1. Personal Information:
   • Full name (first, middle, surname).
   • Date of birth (DD/MM/YYYY format for individuals).
   • Father’s full name (first, middle, surname).
2. Address:
   • Complete residential address, including flat number, premises name, street, locality, city, district, state, and PIN code.
3. Contact Details:
   • Mobile number and/or telephone number.
4. Transaction Details:
   • Nature of the transaction (e.g., opening a bank account, property purchase).
   • Transaction amount.
   • Date of the transaction.
   • Mode of payment (cash, cheque, online transfer, etc.).
   • Number of persons involved (if it’s a joint transaction).
5. Aadhaar and PAN Application Details:
   • Aadhaar number (if available).
   • PAN application acknowledgment number and date (if applied but not received).
6. Income and Tax Details:
   • Estimated total income for the financial year (if PAN not applied for).
   • Details of the last income tax return filed (ward/circle/range), if applicable.
7. Supporting Documents:
   • Identity proof (e.g., Aadhaar, voter ID, passport).
   • Address proof (e.g., utility bill, ration card, property tax receipt).
8. Declaration:
   • A signed statement confirming the accuracy of the information provided.

Tips for Accurate Filing

• Double-check all details to avoid errors, as false declarations can lead to penalties.
• Use “N.A.” (Not Applicable) for fields that don’t apply to your situation.
• Attach required identity and address proofs only if you’ve applied for a PAN but haven’t received it yet.

How to Submit Form 60

Form 60 can be submitted either online or offline, depending on the entity you’re dealing with (e.g., a bank, financial institution, or tax authority). Here’s how:

Offline Submission

1. Download the Form 60 PDF from the official Income Tax portal or obtain it from the institution (e.g., bank).
2. Fill out the form manually or digitally.
3. Sign the declaration section.
4. Submit it to the entity overseeing your transaction (e.g., bank manager, property registrar) along with supporting documents, if required.

Online Submission

1. Visit the website of the entity (e.g., bank or tax portal).
2. Locate the option to upload Form 60 (some banks offer digital submission portals).
3. Fill in the details online, upload scanned copies of the form and documents, and submit.

Retention Period

Form 60 is valid for six years from the end of the financial year in which the transaction occurs. Ensure the entity retains a copy as proof of compliance.

How to Download Form 60

Downloading Form 60 is quick and easy through the official Income Tax portal. Follow these steps:

1. Visit incometaxindia.gov.in.
2. Navigate to the “Forms/Downloads” section under “Tax Laws & Rules.”
3. Select “Income Tax Forms.”
4. Search for “Form 60” in the list.
5. Choose between a PDF version or a fillable format.
6. Click to download and save it to your device.

Alternatively, websites like UTIITSL or third-party tax platforms may also offer downloadable versions, but always verify authenticity.

Legal Implications of Form 60

Submitting Form 60 carries legal weight, and accuracy is non-negotiable. Under Section 277 of the Income Tax Act, 1961, providing false information can lead to:

• If Tax Evasion Exceeds Rs. 25 Lakh:
  • Imprisonment from 6 months to 7 years, plus a fine.
• Other Cases:
  • Imprisonment from 3 months to 2 years, with a fine.

This underscores the importance of honesty when filling out the form. It’s not just a formality—it’s a sworn declaration under the law.

Form 60 vs. Related Forms: Key Differences

Form 60 isn’t the only document tied to PAN-related declarations. Here’s how it compares to similar forms:

Form 60 vs. Form 61

• Form 60: For individuals without a PAN engaging in Rule 114B transactions.
• Form 61: For individuals with only agricultural income (no taxable income) who lack a PAN and undertake Rule 114B transactions.

Form 60 vs. Form 49A

• Form 60: A substitute for PAN in specific transactions.
• Form 49A: The application form for Indian residents to obtain a PAN.

Form 60 vs. Form 49AA

• Form 60: Used by individuals without a PAN.
• Form 49AA: PAN application form for non-residents or foreign entities.

Form 60 vs. Form 16

• Form 60: A declaration for transactions without a PAN.
• Form 16: A certificate issued by employers detailing salary and tax deducted at source (TDS).

Understanding these distinctions helps you choose the right form for your needs.

Common Myths About Form 60

Let’s debunk some misconceptions:

1. Myth: Form 60 exempts you from taxes.
   • Fact: It only substitutes for a PAN; you’re still liable for applicable taxes.
2. Myth: You can use Form 60 indefinitely.
   • Fact: It’s a temporary measure. You should apply for a PAN if you regularly engage in Rule 114B transactions.
3. Myth: Companies can file Form 60.
   • Fact: It’s strictly for individuals, not firms or companies.

Benefits of Using Form 60

• Accessibility: Enables financial transactions without a PAN.
• Flexibility: Useful for one-off transactions or while awaiting PAN issuance.
• Compliance: Keeps you aligned with tax laws, avoiding disruptions.

Limitations of Form 60

• Temporary Solution: Not a long-term substitute for a PAN.
• Restrictions: Can’t be used by entities or individuals with taxable income above the exemption limit without applying for a PAN.
• Documentation: Requires additional proofs in some cases, adding to paperwork.

Frequently Asked Questions (FAQs) About Form 60

1. Can I use Form 60 multiple times?

Yes, there’s no limit on how often you can use Form 60 for Rule 114B transactions, provided you meet the eligibility criteria.

2. What happens if I get a PAN after submitting Form 60?

You must inform the entity (e.g., bank) where you submitted Form 60 and update your records with the new PAN.

3. Is Form 60 mandatory for all bank transactions?

No, only for transactions exceeding Rs. 50,000 in cash or specific account openings as per Rule 114B.

4. Can NRIs file Form 60?

NRIs are exempt from submitting Form 60 for certain transactions. However, they can use it if they have no taxable income in India and no PAN for other Rule 114B activities.

5. How long does it take to process Form 60?

Processing is immediate upon submission to the relevant entity, as it’s a declaration, not an application requiring approval.

Pro Tips for Using Form 60 Effectively

• Apply for a PAN Early: If you anticipate frequent transactions, get a PAN to avoid repeated Form 60 filings.
• Keep Records: Retain copies of submitted forms and supporting documents for future reference.
• Consult Experts: For complex transactions, seek advice from a chartered accountant to ensure compliance.

Conclusion

Form 60 is a vital tool in India’s tax and financial ecosystem, offering a practical solution for individuals without a PAN to engage in essential transactions. Whether you’re opening a bank account, buying property, or making a large cash payment, this declaration ensures you stay compliant with Rule 114B of the Income Tax Rules. However, it’s not a replacement for a PAN—consider it a stepping stone while you secure this critical identification number.

By understanding when and how to use Form 60, filling it accurately, and knowing its legal implications, you can navigate financial processes with confidence. Ready to get started? Download Form 60 from the Income Tax portal today and take control of your transactions!