Taxpayers Alert: SMS From Income Tax Department & How to “Respond To…”

Recently numerous taxpayers have shared that they have received an SMS from the Income Tax Department containing the following message: 

"The Income Tax Department has been informed about specific transactions mentioned in your Form 60/61 for the fiscal year 2021-22. If you don't have a PAN number, kindly apply for it using Form 49A promptly. Alternatively, if you have a PAN, ensure you provide it to the Reporting Entity within 15 days from the campaign execution date. Income Tax Department.”

The Economic Times report has confirmed the authenticity of this SMS through the Income Tax Department's official Twitter handle. This means the SMS is indeed from the department. To understand why taxpayers are getting this SMS and what Form 60 is, let's take a closer look.

What is Form 60?

Form 60 is a document utilized in India for individuals who do not have a Permanent Account Number (PAN) but need to conduct specific financial transactions that require a PAN. 

This form is mainly considered by individuals who do not have a PAN card but need to complete transactions such as opening a bank account, making a fixed deposit, or purchasing or selling a motor vehicle, among others.

What Is The Reason For Receiving This SMS?

According to Gopal Bohra, a Partner at N.A. Shah Associates, a Chartered Accountancy firm in Mumbai, individuals who do not have a PAN but are involved in specific financial transactions will receive this SMS.

In this context, "specified transactions" are transactions where having a PAN is compulsory. Rule 114B states that individuals without a PAN must provide a declaration in Form 60 to the relevant reporting entity when participating in any of the 18 particular financial transactions mentioned in the rule. 

These transactions include activities such as buying or selling motor vehicles, real estate properties, or shares not listed on recognized stock exchanges.

How To Response This SMS?

Tax experts have accounted for two major reasons for receiving this SMS. Either the recipient legitimately submitted Form 60 for certain transactions, or someone might have used their details in Form 60 maliciously to avoid giving a PAN. 

In both cases, recipients should respond accordingly. If they indeed engaged in transactions without a PAN, they should quickly apply for a PAN using Form 49A. If they suspect unauthorized use of their details, they should contact the Income Tax Department to resolve the matter.

Also Read: Indian Parliament Approves The Legislative Amendments 28% GST Tax Effective From 1st October

Leave a reply