Form 61

The Permanent Account Number (PAN) is a unique alphanumeric identifier issued by the Income Tax Department to individuals, entities, and businesses in India. It serves as a crucial proof of identity for financial transactions and tax-related activities. PAN facilitates tracking of taxable transactions, prevents tax evasion, and enables efficient communication between taxpayers and the government, ensuring transparency and compliance in the tax system.

What is Form 61?

Form 61 is a declaration form used by individuals who earn income exclusively from agriculture and do not receive taxable income from other sources. As per Rule 114B of the Income Tax Rules, these individuals must not possess a PAN (Permanent Account Number). The form is submitted during financial transactions to declare their agricultural income. It ensures compliance with tax regulations and helps track agricultural earnings. If you fall into this category, ensure you fill out Form 61 accurately to maintain transparency in your financial dealings.

What is Form 61 used for?

Form 61 serves a specific purpose in financial and tax-related matters. It is a declaration form that individuals can use in place of a PAN card for certain transactions. Here are the few purposes of Form 61:

When to use: Form 61 is applicable when an individual receives income solely from agriculture and is not a recipient of any other taxable income.

Transactions covered: It is used for transactions mentioned in Clauses (a) to (h) of Rule 114B.

Examples of covered transactions: 

• Purchase or sale of vehicles (excluding two-wheelers).
• Fixed deposits exceeding Rs. 50,000 with banks or the Post Office.
• Contracts related to the purchase or sale of specified securities exceeding Rs. 10,00,000.
• Purchase or sale of immovable property worth over Rs. 5,00,000.
• Opening a bank account.
• Applying for a telephone connection (including cellular connections).
• Payments exceeding Rs. 25,000 to restaurants and hotels.
• Life insurance premium payments.
• Buying bank drafts or pay orders.
• Payments for traveling abroad.
• Payments to mutual funds for unit purchases.
• Payments for stock acquisition.
• Requesting the issuance of a credit or debit card.
• Purchasing debentures or bonds.
• Buying shares in a company.
• For minors whose income is not taxed, their father’s/ mother’s/ guardian’s PAN number should be given.
• Purchase or remittance payments made outside of India.

How to fill the Form 61?

Now that you have understood the purpose of Form 61, let us dive into the details of how to fill out Form 61:

Online or offline:

• Form 61 can be procured both online and offline.

Required information:

• Name and address of the applicant.
• Particulars or details of the transaction.
• Proof of address.
• Date and place (along with the declarant’s signature).

Verification:

• The applicant must sign the verification section, stating that all provided information is true to the best of their knowledge.

Additional notes:

• If applying for a Normalising a Dormant company, select the relevant option.
• Minors’ income not taxed should include their guardian’s PAN number.

Remember that Form 61 is a substitute for a PAN card in specific scenarios, and accurate information is crucial for compliance.

Documents required along with Form 61

When filling out Form 61, you will need to provide supporting documents to prove your identity or address. Here are some valid documents that you can submit along with Form 61:

1. Aadhaar Card
2. Driving license
3. Passport
4. Ration card
5. ID proof from an accredited institution
6. Copy of the electricity bill or telephone bill

Difference between Form 60 and Form 61

Let us explore the differences between Form 60 and Form 61:

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