Thursday, July 25, 2019

What is Form 60 for PAN Card?

PAN card or Permanent Account Number is mandatory for carrying out any financial transaction over the said limit, opening a bank account, or when dealing with any sort of assets, etc. But what is one does not have a PAN card? In such a situation, they need to submit Form 60.

Let us learn what form 60 for PAN card in this article is.


What is Form 60 and Why is it Required?


There are still many individuals who do not have a PAN card. Or in some cases, the individual has made an application for PAN card, and are waiting for their PAN number to arrive. In such a situation, the individual (not a company or firm) are required to fill Form 60 in lieu of submitting the PAN card.

Form 60 is a declaration that needs to be filed by an individual or a person who does not have a unique PAN number. They need to use Form 60 whenever they enter any transaction specified in rule 114B.

Can Form 60 Be Substituted for PAN Card in All Situations?


If you don’t have a PAN card, you can use Form 60. However, it is not a replacement or substitute for PAN card. It is just a form of relaxation for individuals provided by the government to complete certain transactions in case one cannot procure PAN card immediately or need to enter a financial transaction urgently.

Under Which Transactions Can One File Form 60?


One can file Form 60 for limited number of transactions. Some of the transactions that require PAN or Form 60 include:

1.Sale or purchase of Motor Vehicle [other than two wheeled vehicles] - Irrespective of value / Any Value

2.Opening a Bank account- Irrespective of value

3.Getting new Debit or Credit card-    Irrespective of value

4.Opening D- MAT account -    Irrespective of value

5.Payment to hotel or restaurant at one time -  Cash payment exceeding Rs 50,000

6.Travelling expenses to foreign country or buying foreign currency at one time- Cash payment exceeding Rs 50,000

7.Buying Mutual funds - Amount exceeding Rs 50,000

8.Acquiring bonds or debentures - Amount exceeding Rs 50,000

9.Acquiring bonds issued by RBI -  Amount exceeding Rs 50,000

10.Depositing money with (a) Bank, (b) Post Office - Cash exceeding Rs 50,000 in one day

11.Purchasing Bank Draft/ pay order/ banker’s cheque - Cash exceeding Rs 50,000 in one day

12.Time deposit (FD) with
(a)Bank
(b)Post Office
(c)NBFC
(d)Nidhi company    - Exceeding Rs 50,000 at a time or Rs 5,00,000 in a financial year

13.Life Insurance Premium -    If amount exceeds Rs 50,000 in a FY

14.Trading in securities Amount - Exceeding Rs 1,00,000 per transaction

15.Trading in shares of unlisted company -    Amount Exceeding Rs 1,00,000 per transaction

16.Sale or purchase of any immovable property-    If amount or registered value exceeds Rs 10,00,000

17.Buying and selling of goods and services-    Rs 2,00,000 per transaction

Thus, Form 60 (https://www.incometaxindia.gov.in/forms/income-tax%20rules/103120000000007944.pdf) needs to be filled by a person not a company or firm, who does not hold a permanent account number and needs to enter any transaction specified in rule 114B.

References:

1.https://www.incometaxindia.gov.in/Forms/Income-Tax%20Rules/103120000000007944.pdf
2.https://tax2win.in/guide/income-tax-form-60#what-is-form-60-and-when-is-it-required

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