What is Form 60? Everything You Need to Know About Its Purpose and Filing 

Introduction

Navigating financial regulations in India requires awareness of several critical documents. One such form is Form 60, a declaration that serves as an alternative to a Permanent Account Number (PAN) when specific financial transactions are undertaken. Whether you’re an individual or a partnership firm, understanding Form 60 is crucial to staying compliant with the law and avoiding potential penalties.

Every financial transaction in India exceeding certain thresholds requires the submission of a PAN. But what happens if you don’t have a PAN? That’s where Form 60 comes in. It acts as a legally recognized substitute, allowing individuals and entities to carry out transactions without a PAN while remaining compliant with tax laws.

In this guide, we’ll explore everything about Form 60—from its necessity to the consequences of non-compliance—and provide actionable insights for hassle-free filing. Whether you’re managing individual taxes or handling regulatory aspects of a partnership firm, experts like RegisterKaro can assist with comprehensive compliance solutions tailored to your needs.

Also Read: A Step-by-Step Guide to Filing Your Income Tax Return

What is Form 60 in the Bank?

Form 60 is a declaration form prescribed under the Income Tax Act. It is required when an individual or entity undertakes a transaction that mandates quoting a PAN but does not possess one.

Form 60 ensures transparency in financial dealings and allows the Income Tax Department to track high-value transactions, thereby preventing tax evasion. It is widely used in banking, property registration, and other financial sectors.

For example,  if you’re buying immovable property worth ₹10 lakh or more and do not have a PAN, you must submit Form 60 to comply with regulations.

Purpose and Importance of Form 60

The purpose of Form 60 extends beyond being a substitute for PAN. It plays a significant role in ensuring financial accountability and promoting tax compliance.

• Track Financial Transactions: Form 60 helps authorities track high-value transactions.
• Prevent Tax Evasion: It ensures that individuals and entities contribute to tax revenues.
• Ease of Transactions: Provides a way for individuals without PAN to engage in financial activities.

Compliance experts like RegisterKaro offer end-to-end solutions, from filing tax-related documents to assisting businesses with regulatory adherence.

When is Form 60 Required?

Form 60 is mandatory for financial transactions where quoting a PAN is required but unavailable. Common scenarios include:

• Banking Transactions: Deposits exceeding ₹50,000 in a single day, the opening of a joint bank account, etc.
• Property Deals: Purchase or sale of immovable property worth ₹10 lakh or more.
• Mutual Funds & Securities: Investing above ₹50,000.
• Fixed Deposits: Opening or maintaining fixed deposits above ₹50,000.
• Foreign Exchange: Purchasing foreign currency exceeding ₹50,000.

For businesses like partnership firms, adhering to these rules is critical to avoid complications.

Who Needs to Submit Form 60?

The following individuals and entities must submit Form 60:

1. Individuals Without PAN: For personal financial transactions.
2. Non-Residents: NRIs conducting transactions in India but not possessing PAN.
3. Entities: Partnerships or small businesses that are not yet registered for PAN.

Details and Information to Include in Form 60

Form 60 requires specific details to ensure accuracy and compliance. Here’s what needs to be included:

• Full Name and Address
• Date of Birth or Incorporation (for entities)
• Contact Information (Phone and Email)
• Transaction Details (Amount, Date, and Nature of Transaction)
• Aadhaar Number (if available)
• Estimated Income for the Financial Year
• Declaration of Non-Possession of PAN

Correctly filling in these details is essential to avoid rejection. 

Documents Required Along With Form 60

Supporting documents are critical to validate the information in Form 60. These include:

• Identity Proof: Aadhaar, Passport, or Voter ID.
• Address Proof: Utility bills, bank statements, or rental agreements.
• Transaction-Related Documents: Investment certificates, sale deeds, etc.
• Income Proof: Bank passbook or salary slips.

How to Fill and Submit Form 60

First comes the question of how to get form 60. For this, you can visit Income Tax from the official website of the Income Tax Department. Here’s a step-by-step guide to completing and submitting Form 60:

1. Obtain Form 60: Download it from the Income Tax Department’s website or request it from the concerned institution.
2. Enter Personal Details: Provide accurate and complete personal information.
3. Provide Transaction Details: Clearly describe the financial transaction.
4. Attach Supporting Documents: Ensure all relevant proofs are attached.
5. Submit the Form: Hand it over to the institution (e.g., bank or real estate company) requiring it.

Consequences of Not Submitting Form 60 When Required

Failure to submit Form 60 when required can lead to several issues, including:

• Transaction Denial: Banks or institutions may refuse to process the transaction.
• Tax Scrutiny: Increased chances of investigation by tax authorities.
• Penalties: Monetary fines or legal action for non-compliance.

Common Mistakes to Avoid While Filing Form 60

Filing Form 60 correctly is crucial to ensure compliance and avoid any complications. Here are some common mistakes to watch out for:

1. Providing Inaccurate Details: Cross-check all entries before submission.
2. Incomplete Documentation: Ensure all required proofs are attached.
3. Delayed Submission: Submit Form 60 promptly to avoid penalties.
4. Ignoring Updates: Keep your details updated with the institution.

By avoiding these pitfalls, you can ensure a hassle-free compliance experience.

Conclusion

Form 60 is an essential document for individuals and entities without a PAN who need to carry out certain financial transactions. Its role in ensuring compliance with tax regulations cannot be overstated.

Whether you’re an individual conducting a high-value transaction or a partnership firm navigating the complexities of tax compliance, understanding the requirements of Form 60 is crucial. For seamless compliance and filing, consider leveraging professional services like RegisterKaro, which offer expert assistance tailored to your needs.

Need assistance with tax compliance or filing Form 60? Contact RegisterKaro at support@registerkaro.in and simplify your compliance journey today.

Frequently Asked Questions (FAQs)

1. What is the Purpose of Form 60 in Financial Transactions?
Form 60 serves as an alternative to PAN for individuals or entities without a PAN, enabling them to comply with tax laws during financial transactions where PAN is mandatory.

2. When Should You Use Form 60?
Form 60 is required when conducting transactions such as opening a bank account, purchasing property, or depositing large amounts in banks if you do not possess a PAN.

3. What Are the Documents Needed to Submit Form 60?
To submit Form 60, you must provide identity and address proof, such as Aadhaar, voter ID, or passport, along with the form.

4. Is It Mandatory to File Form 60 for All Transactions Without a PAN?
Yes, if the transaction exceeds the prescribed limits defined by the Income Tax Act and the individual does not have a PAN, submitting Form 60 is mandatory to avoid non-compliance.

5. How Does Submitting Form 60 Help in Tax Compliance?
Submitting Form 60 ensures that your financial transactions are recorded and in compliance with tax regulations, preventing potential legal issues or penalties.

6. How can RegisterKaro help with tax compliance?
RegisterKaro offers expert assistance in filing Form 60, tax consultations, and managing compliance requirements for individuals and businesses.