In recent times, a significant number of individuals fulfilling their tax obligations have been receiving informative messages from the Income Tax Department through the Income tax SMS alert system. These messages serve as notifications that the tax authorities have identified specific transactions filed under Form 60/61 for the fiscal year 2021-22. If an individual receives this message and lacks a Permanent Account Number (PAN), there are two crucial steps to follow. They must either initiate the process of obtaining a PAN using Form 49A or promptly share their existing PAN details with the relevant Reporting Entity within a 15-day window from the receipt of the message. It is worth noting that the authenticity of this message has been confirmed by the Income Tax Department through its official Twitter account.
Form 60:
Think of it as a substitute for a PAN, applicable when an individual doesn’t possess a PAN. Ordinarily, a PAN is a prerequisite for various financial transactions. However, in the absence of a PAN, Form 60 can be used as a valid alternative.
But why is there an upsurge in the issuance of these messages?
The surge in Income tax SMS alert corresponds to individuals who have undertaken specific transactions that necessitate a PAN. If, for certain transactions, these individuals used Form 60 instead of a PAN, the tax authority requires them to take one of two actions within 15 days: either acquire a PAN or furnish their PAN details to the relevant Reporting Entity. These Income tax SMS alert are triggered by these specific transactions, referred to as “specified transactions,” which are governed by Rule 114B. This rule mandates the submission of Form 60 to the appropriate Reporting Entity for transactions involving assets such as property, automobiles, or shares that are not part of major stock exchanges. For instance, if someone engaged in a property purchase using Form 60 or acquired a substantial amount of gold exceeding Rs 2 lakh using Form 60, they might find themselves on the receiving end of this Income tax SMS alert.
So, what’s the course of action for individuals who receive these messages?
There are two scenarios: either they employed Form 60 for these designated transactions, or someone might have misused their information to complete Form 60 without their consent.
- If the individual already holds a PAN, they are required to expeditiously provide their PAN details to the entity with which they conducted the particular transaction within 15 days from the date of the transaction.
- Paying close attention to these messages is really important, especially if you didn’t use Form 60 but still got an income tax SMS alert.
- Such a situation might indicate an attempted impersonation. In case of suspicion, individuals have recourse to report the matter.
- They can send an email to [email protected] or call 1800 103 4215 to notify the Income Tax Department of the potential discrepancy.
Now, who are these Reporting Entities (RE)?
Reporting Entities are individuals or organizations responsible for recording someone’s PAN during certain financial transactions.
- Noteworthy examples of Reporting Entities encompass financial institutions such as banks, postal services, and professionals involved in property or vehicle transactions.
- The Central Board of Direct Taxes (CBDT) stipulates these Reporting Entities under section 285BA.
- To elucidate, when an individual seeks to convert currency, the entity facilitating the exchange must report the transaction as part of the Income tax SMS alert mechanism.
- Essentially, these messages elucidate situations necessitating a PAN. If an individual lacks a PAN, they can resort to Form 60; however, strict adherence to the guidelines provided by the tax department is imperative to avert any potential complications.
- Now, what’s this Form 60? It’s like a paper that someone can use when they don’t have a PAN. A PAN is usually needed for different money-related things. But if someone doesn’t have a PAN, they can use Form 60 instead.
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