Permanent Account Number (PAN) is a one-of-a-kind all-India number that serves as proof of a taxpayer’s identity and helps link all information about a specific taxpayer (for example, taxes paid, refunds issued, outstanding arrears, income disclosed, and transactions entered) through the computer system. This is meant to trace taxpayer financial activities and, as a result, deter tax fraud and evasion.
Why Form 60
According to income tax regulations, getting a PAN for specific individuals, such as those with taxable income, those operating in a company or profession with a turnover exceeding a specific limit, and so on is obligatory. PAN must also be quoted in other papers such as income tax returns, correspondence with the income tax department, documents referring to specific transactions such as asset sale and purchase, etc.
It is conceivable that a person did not get PAN simply because it is not required, or if he applied for PAN but has not yet gotten it. In an ideal world, the lack of a PAN should not preclude an individual from engaging in certain activities or make it difficult for income tax authorities to trace financial transactions to avoid tax evasion/fraud. In such cases, Form 60, along with any necessary supporting papers, can be presented to complete the transaction.
What is Form 60? When should Form 60 be furnished?
Form 60 is a document that must be filed by an individual or any entity (not a corporation or firm) to carry out financial transactions that need the quotation of PAN in either of the two scenarios described below:
- The concerned individual does not have a PAN, having not applied for one.
- The concerned individual has filed for a PAN, but the allocation is still waiting.
Form 60 is only allowed in the case of scenario (b), where a person’s total income exceeds the maximum amount that is not taxed in the year of the transaction.
You may also get Form 60 from the Income Tax Portal website.
When to Submit Form 60
The table below depicts several examples of transactions that need PAN quotations. Furthermore, Form 60 must be submitted for these transactions if the individual in question does not have a PAN or has a pending PAN allotment.
Form 60 PDF Download