As per the Income Tax Act, PAN is necessary to be quoted in various documents or transactions. However, in certain cases Form No 60 can also be used. Here's all you need to know.
As per the Income Tax Act, Permanent Account Number (PAN) is necessary to be quoted in various documents or transactions. But it is possible that a person may not have PAN yet or might have applied for PAN but may not have been allotted. What to be done in such cases? Well, in such scenarios, Form 60 can be submitted along with relevant supporting documents to carry out the transaction. Let’s see in detail.
What is Form 60?
If an individual enters into the specified transactions as per Rule 114B of the Income-Tax Rules, 1962, and does not have PAN (Permanent Account Number), he /she shall have to submit Form No. 60.
For which transaction Form 60 can be submitted?
PAN or Form 60 is required in various transactions which are specified in Rule 114B. Some of the examples are as below:
# Opening a Bank or Demat account
# Getting a new Debit or Credit card
# Sale or purchase of Vehicle (other than two-wheeled vehicles)
# Depositing Rs 50,000 in a day with
(b) Post Office
# Sale or purchase of any immovable property exceeding Rs 10,00,000.
How to submit Form 60?
To the relief of the common man, CBDT has notified the procedure to submit Form 60. “It can be submitted both offline and online. In the Offline mode, Form 60 can be submitted physically in paper form as per the existing procedure. In the Online mode, it can be submitted electronically using electronic verification as per the recently-notified procedure,” says CA Abhishek Soni, Founder, tax2win.in.
What is the Electronic Procedure to submit Form 60/Form 61?
As per Rule 114D of Income Tax Rules, 1962, persons specified in Rule 114C shall have to furnish a statement in Form 61 containing the details of the persons whose declarations have been received in Form 60, through electronic procedure and obtain an acknowledgement number.
CBDT in exercise of its power has specified the electronic procedure as below:
a) The electronic verification can be enabled using the electronic portal – https://report.insight.gov.in/reporting-webapp/portal/homePage
b) It can also be enabled using the following specified Aadhaar Authentication methods:
a. One Time-Password (OTP) which will be delivered to your mobile number or e-mail address
b. Biometric modalities i.e. either through iris or fingerprint.
c. Two factor authentication with OTP as one factor and biometrics as the second factor.
d. Use of OTP, fingerprint & iris together.
Further, “if Form No. 60 is to be furnished in multiple transactions during a year relating to the same person, then the person collecting Form No. 60 may do it only for the incremental information. However, he has to mandatorily link the subsequent transactions,” says Soni.
With this move, CBDT has tried to digitalize the way of submission of Form No. 60 along with keeping the security features intact. Further, if you are unable to submit the form as per the above procedure due to technical issues, then you may submit Form No. 60 in paper form.