Guide on Form 60/61 of the Income Tax Act: How to Fill and Download the Documents Online?

For all Indian taxpayers, a PAN card is a crucial document. It serves the purpose of storing all the necessary financial transactions of every applicant. Moreover, a PAN card becomes essential when it comes to operating a business, filing returns, starting a new investment and so on. 

If you do not possess a PAN as a business person but tend to carry out transactions that would have required related details then it will lead to many questions on your authority to execute commercial activities. However, when the PAN is not available, you can access Form 60/61 of the Income Tax Act to perform similar transactions. The details about this form are given below.

What Is Form 60/61 Under the Income Tax Act?

Form 60 is an official declaration that needs to be authorised by a regular taxpayer (a person) to allow transactions as specified in Rule 114B. Its usage is seen when the organisation under question does not have a PAN. 

On the other hand, Form 61 is another form of statement that must be submitted by individuals who make a livelihood from agricultural income. Also, it states that these people do not have an additional source of income that attracts tax. The second part should satisfy the guidelines as mentioned in clauses (a) to (h) of Rule 114B. 

How to Complete Form 60/Form 61 Download Online?

If you are wondering where to fetch Forms 60 and 61 of the Income Tax Act, make sure to follow these sections:

The steps to download Form 60 are as follows:

Step 1: Go to the official website of the Income Tax Department.

Step 2: From the top navigation bar, click on ‘Forms/ Download’.

Step 3: Select ‘Income Tax Forms’ using the drop-down menu. 

Step 4: A fresh page opens where you can check out multiple forms related to income tax.

Step 5: You have to select the option 'Form 60' which can be found after scrolling down a bit.

Step 6: Click on the document to automatically save a copy of it in your system. 

Conversely, Form 61 is filed by taxpayers online and thus, you need not download it. To apply for this form, you have to visit the official e-filing portal of the IT department and retrieve the Income Tax Department Reporting Entity Identification Number (ITDREIN). The process to achieve this task has been described below. 

How to Fill the Forms 60 and 61 of the Income Tax Act?

Below you can go through the online procedure to fill out Form 60:

Step 1: Visit the official portal of the Income Tax Department to download the Form 60.

Step 2: Provide some mandatory details using this document like your Aadhaar card number, date of birth, father’s name, address, mobile number and so on.

Step 3: After you have completed the transaction, mention its value along with the selected mode of payment.

Step 4: Specify the address where the IT returns are to be submitted.

Step 5: If you have already applied for your PAN card but have yet to receive the document, then you need to provide the acknowledgement number accompanied by the application date. 

Step 6: Confirm if the details are correct and complete the form fillup process.  

Moving forward, a form 61 can be obtained by a person both offline and online. However, to access this document, applicants must give specific details. These include:

• Name and address of the respective person
• Proof of address
• Details or description of the transaction
• Date, venue in addition to the declarant’s signature

An applicant will also be required to sign the verification part of the form declaring that they have honestly stated the information. To end with, you need to mention the date and place of the agreement. 

A person handling PAN-required transactions should have ready access to Form 61. Such an individual can be the manager of a bank branch. 

The strategic steps to opt for Form 61 online are given below:

Step 1: Open the e-filing interface of the Income Tax Department and sign up for the Income Tax Department Reporting Entity Identification Number (ITDREIN). 

Step 2: Enter the same login details as needed when filing your income tax returns.

Step 3: If you are about to complete the registration process, i.e., signing up for the first time, then go to 'Reporting Portal' which can be found under the 'My Account' tab. 

Step 4: Provide the necessary details that include the reporting individual's address, category and form type. 

Step 5: Provide some key details about the Principal Officer.

Step 6: After submitting, you can see the ITDREIN being created automatically. 

Step 7: Eventually, a confirmation email is sent to the registered mail address of the Principal Officer. In addition, this person receives a similar SMS to their given phone number. 

When Form 60/61 of the Income Tax Act Is Required?

You can refer to the list of transactions below to get a clear understanding of when to apply for Forms 60 and 61 of the Income Tax Act:

Uses of Form 60 include:

• Sale or purchase of any motor vehicle where the amount exceeds ₹10 lakh (two-wheelers are an exception)
• Paying for life insurance premiums, purchasing mutual funds or acquiring bonds/debentures recognised by the RBI where the purchase value is more than ₹50,000
• Executing trades where stocks of unlisted companies are involved and the value exceeds ₹1 lakh per transaction
• Acquiring a new credit/debit card
• Selling or buying commodities or services where the transaction amount is more than ₹2 lakh per individual transaction
• Applying for a bank account other than the basic savings account category
• Registering a DEMAT account
• Paying at a restaurant or a hotel where the bill amount is crossing ₹50,000 in a single instance
• Buying a foreign currency or making travel expenses outside if the payment exceeds ₹50,000 at a time
• Depositing money with any bank or post office where the payment is more than ₹50,000 in a single instance
• Availing a pay order/cheque/bank draft where the amount is greater than ₹50,000 in a single day
• Opening a fixed deposit with a bank where the lump sum investment is more than ₹50,000 or crossing ₹5 lakh in a single financial year

Regardless of whether you need Form 60 or other documents to open an FD, the Stable Money app allows you to invest instantly with minimal paperwork. The best part is that our app helps connect you with fixed deposit providers that give up to 9.10% interest per annum. 

Conversely, Form 61 needs to be generated in the following cases:

• Sale or purchase of an immovable property that is worth more than ₹5 lakh
• FDs exceeding ₹50,000 with a bank or post office
• Acquiring contracts that are linked to specific securities of more than ₹10 lakh
• Opening a bank account
• Payments to a hotel or restaurant where the tariff is exceeding ₹25,000
• Opting for a telephone connection (also includes cellular networks)
• Paying for a mutual fund/life insurance/bonds or debentures
• Making payments for stock acquisition or travelling abroad
• Opting for a new debit or credit card

Final Word

Usage of Form 60/61 of the Income Tax Act is subject to particular scenarios and the concerned individuals need to submit them mandatorily. Additionally, it goes without saying that you need to declare the correct details while filling out these forms. If the designated Income Tax personnel finds any mismatch with the entries then your process will get delayed as the form will require a resubmission.

1. Is Form 60/61 mandatory for everyone?

When a taxpayer does not have a PAN number but needs to execute transactions that need PAN details then they have to either submit a Form 60 or 61. 

1. Who can submit Form 61?

Individuals who earn through agricultural activities and do not have any alternative sources of income that come under the purview of tax can use the Form 61 declaration. 

1. What is the last date for filing Form 61?

For every year where the relevant transactions take place, you need to submit a Form 61 against these purchases/sales within 31st May of the subsequent year. If you fail to meet this deadline, then a penalty of ₹500 per day is levied as per Section 271FA of the Income Tax Act.