Can Form 60 be used on behalf of employee?
Form 60 usage has any drawbacks?
Form 60 is a document to be filed by an individual or any person (not a company or firm) to carry out financial transactions that mandates quoting of PAN, under either of the following two scenarios:
- Concerned person does not have a PAN i.e., not applied for
- Concerned person has applied for PAN but allotment is pending
So in scenarios of PAN being needed this can be used as alternate. Its better to generate a PAn card for the employee. Some of the transactions where form 60 is used is here:
Form 60 is required when an individual does not possess a PAN card and wants to get into financial transactions mentioned below:
- Purchase or sale of an immovable property that has a value of Rs.5 lakh or above
- Purchase or sale of any motor vehicle. This excludes two-wheelers but includes detachable sidecars which have wheels attached to the vehicle
- A fixed deposit amount that is more than Rs.50,000 with any bank
- Any deposit that is more than Rs.50,000 in Post Office savings bank account
- Any contract that has a value of Rs.10 lakh or more for purchase or sale of the securities
- Opening an account with any financial institution or bank
- Applying for the installation of a telephone connection, including mobile phone
- Payment to restaurants or hotels against the bills for any amount more than Rs.25,000 at one time