InvestorQ : What are the financial transactions that require PAN or Form 60 details?
Siya Saran made post

What are the financial transactions that require PAN or Form 60 details?

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seema Upadhyaya answered.
1 year ago
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Form 60 is a declaration to be filed by an individual or a person who does not have a permanent account number (PAN) and who wants to open an account or make cash payments. It is a mandatory document required from an individual to carry out financial transactions when the concerned person doesn’t have a PAN Card. Form 60, however, should be supported by a relevant address and identity proof. Rule 114B of the Income Tax Act, mandates that any individual who undertakes any of the following transactions must mandatorily quote their PAN in all documents pertaining to the transaction or file Form 60:

1. Sale or purchase of a motor vehicle or vehicle, which requires registration by a registering authority and other than two wheeled vehicles.

  1. Opening an account, other than a time-deposit and/or a basic savings bank deposit account] with a banking company or a co-operative bank.
  2. Making an application to any banking company or a co-operative bank or to any other company or institution for issue of a credit card or debit card.
  3. Opening of a demat account with a depository, participant, custodian of securities or any other person registered the Securities and Exchange Board of India Act, 1992.
  4. Cash payment of over Rs.50,000 to a hotel or restaurant against a bill or bills at any one time.
  5. Cash payment of over Rs.50,000 for travel to any foreign country or payment for purchase of any foreign currency at any one time.
  6. Payment of over Rs.50,000 to a Mutual Fund for purchase of its units.
  7. Payment of over Rs.50,000 to a company or an institution for acquiring debentures or bonds issued by it.
  8. Payment of over Rs.50,000 to the Reserve Bank of India, constituted under Section 3 of the Reserve Bank of India Act, 1934 for acquiring bonds issued by it.
  9. Deposit in cash of over Rs. 50,000 with a banking company or a co-operative bank.
  10. Purchase of bank drafts or pay orders or banker’s cheques from a banking company or a co-operative bank with cash payment of over Rs. 50,000 in a single day.
  11. Deposit of amount exceeding Rs. 50,000 or aggregating to more than Rs. 5,00,000 during a financial year with a banking company or a co-operative bank.
  12. Payment of over Rs. 50,000 in a financial year for one or more pre-paid payment instruments to a banking company or a co-operative bank.
  13. Payment of over Rs. 50,000 as life insurance premium to an insurer.
  14. Payment of over Rs.1 lakh for contract for sale or purchase of securities.
  15. Sale or purchase of any immovable property with payment of over Rs.10 lakhs.
  16. Sale or purchase, by any person, of goods or services in a transaction over Rs.2 lakhs.
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