The Income Tax Department of India issues a unique alphanumeric number called Permanent Account Number (PAN) under section 139A of the Income Tax Act, 1961. Section 139A also contains some provisions related to the (PAN) that are required to be complied with. In case of failure, the penalties are to be imposed on the defaulter. All these penalty provisions are listed under Section 272B of the same.
Applicability of Section 272B
If any of the below-given circumstances happen then the provisions of Section 272B come into force:
- Non-Compliance of Section 139A
- Submission of the wrong Permanent Account Number (PAN) or Aadhaar Number in the documents listed under Section 139A-(5C)
- Submission of wrong PAN or Aadhaar Number under Section 139A-(5A)
- Failure in the submission of PAN or Aadhaar in documents under Section 139A-(6A)
- Failure to ensure the correctness of PAN or Aadhaar number submitted under Section 139A(5C)
- Failure to ensure the authentication of PAN or Aadhaar under section 139A-(6A)
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The penalties under Section 272B will be applicable if there is non-compliance with any one or more provisions listed above.
Provisions of Section 139A
PAN is Mandatory for the Following Types of Persons:
- The resident has a total taxable income exceeding the maximum amount not chargeable by the tax in any previous year
- The resident with total receipts/sales/salaries of more than INR 5 Lakhs in any previous year
- The resident is lawfully required to file an income tax return under Section 139-(4A)
- The resident filing an Income Tax Return under Section 115-WD regarding fringe benefits
- The resident (not individual) having the aggregate amount of financial transactions greater than or equal to INR 2,50,000
- Deductee of TDS (should inform the deductor regarding PAN details)
The buyer under Section 206C should mandatorily inform the Collector of TCS under Section 139A-(5C).
Penalties Under Section 272-B
The default, under any of the above-listed cases, can be charged with a tax penalty of INR 10,000 by the officials after providing a chance to explain the reason behind that act. If the reason is genuine and the error was made by mistake, then he will not be charged with any penalty.
