If an individual carries out certain transactions listed in Rule 114B of the Income Tax Regulations 1962 but does not have a permanent account number, they must complete Form 60 income tax. Form 60 is the required form in this case.
According to the Income Tax Act, it is mandatory to obtain a PAN for certain groups such as documents. Income tax returns, communications with income tax departments, documents related to certain transactions such as buying and selling property, etc.
What Is Form No 60
Form 60 is a return filed by an individual or person (other than a corporation or corporation). It does not have a permanent account number and who makes transactions as specified in Rule 114B. Therefore, a person who does not have a PAN when completing a particular transaction. It will be required to submit Form 60.
A Permanent Account Number (PAN) is basically a unique number across India. That serves as proof of the identity of the taxpayer and contains all information related to a particular taxpayer (e.g. taxes paid, issued refunds issued, disclosed earnings, etc.). and transactions entered) through a computer system. It aims to track financial transactions by taxpayers and prevent tax evasion and tax fraud.
What Is the Use of Form 60 in India
Form 60 is a document that must be submitted by an individual or other person (not a legal entity or company) to make a financial transaction. That requires a PAN to be listed in one of two scenarios:
- Affected individuals person does not have a PAN i.e. not applied for.
- Individuals person has applied for PAN but allotment is pending.
Form 60 will only be accepted for scenario (b) if the individual’s gross income exceeds the maximum tax-exempt amount for the year of the transaction.
Also, you can download Form 60 from the Income Tax Portal.
The following points show examples of transactions that require a list of PANs. Additionally, Form 60 is required for these transactions if the data subject does not have a PAN or has a PAN assignment pending.
- Form 60 must be presented by any person who does not have a PAN card but is making any of the following transactions:
- Form 60 is required on the sale or purchase of real property valued at Rs.5 lakh or more.
- Form 60 is required for the sale or purchase of any automobile or vehicle (except motorcycles, including removable sidecars with additional wheels attached to the vehicle).
- Form 60 is required to make a term deposit over Rs. 50,000 with a bank.
- Form 60 is mandatory for post office deposits over Rs. 50,000 or more.
- Form 60 is used for contracts whose legal value exceeds his Rs 10,00,000 for buying and selling securities.
- Form 60 is required to open an account with a bank or banking institution.
- Form 60 is mandatory for hotel and restaurant payments for bills over RS.25,000 each.
Pro Tips:
If a minor who is not a tax resident of India wishes to open a bank savings or savings account. The PAN card of the guardian must be obtained along with the application. If you do not have a PAN card, you will need to submit Form 60.
Who Will Submit Form 60
Those who do not have, or may already have, a PAN and are waiting for a PAN card but need to complete a transaction with a banking institution or make a transaction of assets May be used in lieu of providing Form 60 PAN as appropriate.
How Long Form 60 Is Valid
Form 60 is valid for six years from the end of the fiscal year in which the financial transaction took place.
What Is the Difference between Form 60 and Form 16
Form 16:
Form 16 is issued by the employer to withhold and deposit taxes into a central government account. It present the deposit receipt to the employee. This withholding statement filed with the government exchequer is known as a Form 16 or TDS statement. Here’s a quick overview to help you better understand Form 16.
Form 16 contains most of the details needed to file an ITR. It consists of two parts,
Part A and Part B.
Part A includes employer name, address, PAN, and TAN data. It also includes the employee’s name, address, and PAN details. This part of Form 16 contains the year of assessment, the date the TDS was filed, the challan number issued to it, and the date the TDS return was filed.
The employer can download Form 16 Part A from the TRACES portal. Before issuing a certificate, the employer verifies that the information and its contents are accurate. Note that if you change jobs during the fiscal year, your employer will issue another Part A of Form 16 for the duration of your employment.
Part B of Form 16 functions like an appendix to Part A. As such, it includes all of your salaries, benefits, bonuses, tax-saving investment details, and other details such as rent, medical expenses, mortgages, and donations required for tax calculation.
Form 60:
Form 60 is a return filed by an individual or person (other than a corporation or corporation) who does not have a permanent account number and who makes transactions as specified in Rule 114B. Therefore, a person who does not have a PAN when completing a particular transaction will be required to submit Form 60.
A Permanent Account Number (PAN) is basically a unique number across India that serves as proof of the identity of the taxpayer and contains all information related to a particular taxpayer (e.g. taxes paid, issued refunds issued, disclosed earnings, etc.). and transactions entered) through a computer system. It aims to track financial transactions by taxpayers and prevent tax evasion and tax fraud.
Frequently Asked Questions (FAQs):–
Is Form 60 required for cash withdrawal?
There is not allowed to withdrawals from accounts with large balances/deposits are not permitted unless a PAN or Form 60 is provided for such an account
Can form 60 be submitted online?
The Form 60 return must be submitted online or offline at the applicant’s convenience.
Conclusion
Now you got to know about form 60 income tax. The Government of India has made it mandatory for citizens to have a PAN card if they belong to any income category or wish to conduct financial activities in the country. Now, a PAN card is considered the most important document.