There may be situations when the applicant may not have a PAN card. Form 60 can be submitted in lieu. It needs to be produced by an individual who does not have a PAN card but gets involved in some transactions.
As per the Income Tax provisions, it is mandatory to obtain PAN for a particular category of persons such as persons having income chargeable to tax, a person with a business or profession, among others. It is also necessary to obtain and quote PAN in various documents like income tax return. PAN is a 10-digit unique alphanumeric number which serves as an identity of a taxpayer. PAN number is mandatory for transactions like purchase or sale of assets, filing an income tax return, purchase of mutual funds etc. However, There may be situations when the applicant may not have a PAN card. Then, Form 60 can be submitted in lieu.
So, What is Form 60?
Form 60 is submitted by an individual when she or he enters into a particular transaction that requires PAN under the two different situations. First being the concerned person not having a PAN and second being the concerned person applying for the PAN but has not been allotted. If the total income of a person entering into the transaction exceeds the maximum amount not chargeable to tax in the year of the transaction, Form 60 is acceptable only in the above scenario.
When is the Form 60 required?
It needs to be produced by an individual who does not have a PAN card but gets involved in transactions mentioned below:
- Purchase/sale of an immovable property having a value of Rs 5 lakh and above
- When you open a demat account
- Purchase or sale of an immovable property
- A fixed deposit amount that is more than Rs 50,000 with any bank
- Any deposit more than Rs 50,000 in a post office savings bank account
- When you open an account with a banking institution or bank for debit/credit card
- Payment of a life insurance premium above Rs 50,000 in a year
- Payment to a mutual fund for the purchase of units above Rs 50,000
- Payment to a restaurant and hotels in cash against the bill exceeding Rs. 50,000 at a time
- Applying for the installation of a telephone connection, including mobile phones.
Submission of the form is quite simple. Just download the form. Fill out and submit it to the party to whom PAN was to be submitted.