Form 61 Explained: What Is Form 61 And What Are The Documents Required?
A PAN Card is a legal identification number required to make any financial transaction in India exceeding Rs. 50,000. It also aids in authenticating any financial transaction. If you have not applied for a PAN card, or if your PAN card has not issued, you must fill out Form 61. Form 61 is specifically designed to aid those individuals who earn their income by agricultural means.
What is PAN Form 61?
Form 61 is a reform by the Income Tax Department to smoothen the process of Income Tax filings without having to own a PAN Card. However, only people who earn income from the agriculture sector can use this provision. Their mode of income should solely be agriculture and not any other mode. Income earned other than the agricultural means will be taxed differently.
What are the Uses of PAN Form 61?
Form 16 is used as a substitute for PAN cards and not limited to filing Income Tax. You can also utilise it as a substitute in various other transactions. Some of its uses are mentioned below:
- The primary use of Form 61 is while declaring an income when filing an Income Tax.
- If you wish to purchase or sell any immovable property whose market worth is over Rs. 5 Lacs, then you need to fill out PAN Form 61.
- You can use it to purchase or sell any vehicle other than a two-wheeler.
- To open a fixed deposit in the post office if the amount exceeds Rs. 50,000.
- While opening a bank account, you can use PAN Form 61 instead of a PAN Card for those who work in the agricultural sector.
- To make any payment in a restaurant or hotel that exceeds Rs. 25,000.
- To open a fixed deposit in the bank if the amount exceeds Rs. 50,000.
- To purchase any financial security that has exceeded Rs. 1 Lacs. This form you need to produce at the time of signing a contract.
- To avail all kinds of telephonic connections, including the cellular connection, this form can be used.
- You can also use it to purchase and sell goods over Rs. 2 Lacs per transaction.
- You can even use it as a KYC document when opening a new account with your bank.
- If you are opening a Demat account, but do not have a PAN card, then you can fill out Form 61.
- Investing in the mutual funds over Rs. 50,000 you need to provide Form 61 without a PAN Card.
Also Read: Section 80GG Of The Income Tax Act: Income Tax Claim Deduction For Rent Paid
How to Apply for Form 61 Online?
Form 61 can be filled out online and offline as per the comfort zone of an applicant. Following is the procedure of the form filling.
Step 1: The first thing that you need to do is to visit the official website of the Income Tax department.
Step 2: If you are a first-time applicant, then sign up on the portal. Make a note of all the credentials that you provide for future reference. From next time onwards, use your credentials to log in.
Step 3: Visit the homepage. You will see my accounts tab. Click on it.
Step 4: Click on the reporting portal link to further the procedure.
Step 5: Provide all the required information that is asked, like the form you are filling out, your identification credentials, and information of the Principal Officer.
Step 6: Check all the information that you provide before clicking on the submit.
Step 7: After you submit, the ITDREIN will be generated, and it will remain active for all of your future Income Tax filings.
Step 8: The principal in charge officer will also receive the notification.
The mandatory information that everyone needs to provide include:
- Your name and address
- Address proof
- Mobile Number registered with Aadhaar.
- Name of your father and his address details
- Details of the last Income Tax form filled. If any.
- If you have applied for a PAN card, then the Date of application
- Transaction details
- Your signature along with the date and the place.
Documents Required for PAN Form 61
You can provide any of the following documents at the time of filling and submitting PAN form 61:
- Aadhaar card of the applicant
- Driving Licence of the applicant
- Voters’rs ID card
- Passport of the applicant
- Ration card of the applicant
- An identification card issued from any authorised institution
- Any utility bill that dates back to the last three months from the date of the Form 61 application.
- Any ID card issued by central, state, or PSU.
- Any government document issued to the declarant with the address mentioned
Important Points to Keep in Mind for Filling Form 61
Before you fill out this form, there are certain things that you need to keep in mind, as follows:
- This form also relaxes the individual who earns their income from the agricultural sector.
- If you earn your income from any other means than the agricultural sector, then you must fill out Form 60.
- Your other income must be below the taxable income slabs.
- This form must be filed within the 30 days you receive notification regarding it from the authorities.
- If you make any mistakes on the form, you must report it to the Income Tax department within ten days of you filling the form. Failing to do so will attract penalties. After reporting errors, you get additional 30 days for rectification.
Also Read: What is Section 80D of Income Tax Act: Deductions for Medical & Health Insurance
Final Word
Filing an Income Tax is your duty, and you must adhere to it. The government of India, along with the Income Tax department, is constantly introducing various measures so everyone can file their Income Tax effortlessly. Form 61, Form 61A and Form 61B are such efforts that ease your process. File the procedure of filing your Income Tax procedure with the help of Form 61 if it applies to you, and avoid getting penalised.
FAQs on PAN Form 61
Ans: It is an identification number generated when you register on the Income Tax web portal. It stands for the Income Tax Department Reporting Entity Identification Number. Once this number is generated, it remains active. Income Tax Department uses this number as an identification number for you. You need to use this number for all the future Income Tax filings. Individuals on their own can not deactivate this number. It follows following 16 number format, *********** YZNNN
The decoding of the components of the ITDREIN is as follows:
* represents your PAN or TAN number
Y represents your form code
Z represents your category of reporting entity
N represents the sequence number of the Code
Ans: Yes, you can fill out Form 61 even if you do not have an Aadhaar card. In the absence of an Aadhaar Card, you need to provide another identification document such as a Voters ID or driving license, and for address proof, you can provide any utility bill from the previous three months.
Ans: Form 61 needs to be filled out biannually. You must fill first on the 30th of April for the declaration received from the 1st of October to the 31 March every year. Next is to be filled on the 31st October for the declaration received from the 1st April to 30th September. The forms must be correctly completed and submitted in the same financial year of the income received.
Ans: SFT stands for the Securities Financing Transaction. These transactions are made when you trade securities to borrow the cash. To avail of the SFT transactions, you must first register it on the Income Tax portal through the following steps:
Using your credentials, log in to your Income Tax website account. If you have not created an account, then create the new one
Fill in all the credentials to get your ITDREIN number.
Once you get it, click on the Manage ITDREIN.
Next, you need to click on the Generate New ITDREIN.
Provide the form number that you are filling and the reporting category.
Now click on the Generate ITDREIN.
After the successful submission, you will get an SFT Registration notification along with your ITDREIN number.
Ans: Yes, it is mandatory at the time of filing Income Tax Returns. If you are utilising it for some other purpose where it is not required, you can skip it.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
