Form 61

Last Updated : Nov. 15, 2022, 11:39 a.m.

The Income Tax Department of India has allotted PAN numbers to monitor the monetary transactions in the country. Every Indian citizen must have their PAN number to make financial transactions and file ITRs.

However, what happens if you are from the agriculture field and do not have a PAN number but need to make transactions? Can financial transactions be made without having a PAN number? If yes, what is the way to make it possible?

Download Form 61

Read this blog to get the answers to these questions and understand Form 61 .

Overview of Form 61

Suppose you have agriculture as your only source of income and do not have any other taxable income sources or transactions mentioned under Clause (a) to (h) concerning Rule 114B. In that case, as per the Income Tax Act, you must fill out Form 61 .

However, this declaration form is only for those who earned it from the agricultural sector.

What Is the Purpose of Using Form 61?

This form replaces the PAN card for financial transactions concerning Clauses (a) to (h) according to Rule 114B. The transactions that are concerned under Form 61 are given below:

• You can sell or buy an immovable property with more than five lakhs.
• You can buy or sell any vehicle except a two-wheeler.
• You can open or maintain an FD for more than ₹50,000 in any bank or post office. However, you must have had a bank account previously.
• Billing the payments of more than ₹25,000 at restaurants and hotels.
• Selling or buying contract-related securities with an exceeding value of ten lakhs rupees.
• Getting a telephone or landline connection.

Note: If the income of minors is not taxable, their parents or guardians need to provide their PAN number .

What Are the Steps to Fill Out Form 61?

This form is available in both modes, online as well as offline. You can either go through the official website of Income Tax e-filing for online filing Form 61 or download the PDF file for offline filing and submission.

Steps for online filing this form are given below:

Step 1: Go through the official website of Income Tax e-filing and register for the ITDREIN, i.e., Income Tax Department Reporting Entity Identification Number.

Step 2: Use the same credentials while filing income tax returns.

Step 3: For first-time registration, click on the ‘My Account option and select the ‘Reporting’ portal.

Step 4: Enter all the mandatory details, such as type of form, address details, and category.

Step 5: Enter the details of the Principal Officer.

Step 6: After that, you will get your ITDREIN.

At last, you need to self-attest your application.

What Are the Essential Documents That Need to Be Attached to Form 61?

The Income Tax Department of India has mandated some documents to attach to this form. These documents are essential to verify your address. The documents that validate your address are given below:

• Electoral Photo Identity Card or EPIC.
• Aadhaar card.
• Identity card issued by an institute proving your address
• Ration Card.
• Passport.
• Driving Licence.
• Document or communication the Central or State Government issued proving your residential address.
• Recent utility bills (not earlier than three months).
• Any other document that verifies your address.

Self-attest the document you attach as your address proof.

What Are the Benefits of Form 61?

Some advantages of filing this form are given below:

• You can buy or sell an immovable property.
• You can buy your vehicle easily.
• You can open your account in any bank or post office.
• You can have your telephone connection.
• You can pay your hotel or restaurant bills upto a certain limit.
• You can make fixed deposits in any bank or post office.
• You can make contractual transactions worth ₹10 lakh or more.
• You can buy or sell securities.

What Are the Differences Between Form 60 and Form 61?

Form 60 and Form 61 help those who need to make financial transactions but do not hold PAN numbers under their names. However, both these forms are slightly different from each other. The differences between them are given below:

Form 60:

• This form is helpful for those not from the agricultural field who still need to get a PAN card but want to make monetary transactions.
• Those who do not hold a General Index Register Number prefer cash payments for each transaction under Clauses (a) to (h) as per Rule 114B.

Form 61:

• This form is helpful for those from the agricultural field who do not have PAN cards but want to make monetary transactions.
• These people do not have any other taxable source of income other than the agricultural field.

At the End

Although a PAN card is mandatory for every Indian citizen for financial transactions, those who do not hold a PAN number and have only income from the agricultural field can use Form 61 to make monetary transactions in a lump-sum format.

Moreover, you know the difference between Form 60 and 61. You can decide which one to fill as per your need.