Section 272B Under PAN Penalties of Income Tax Act

Income Tax Department of India issues a unique alphanumeric number called Permanent Account Number (PAN) under section 139A of 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 wrong 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 in ensuring the correctness of PAN or Aadhaar number submitted under Section 139A(5C)
• Failure in ensuring 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 Type 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 a total receipts/sales/salaries of more than INR 5 Lakhs in any previous year
• The resident lawfully required to file an Income Tax Return Easy guide to file income tax return for the FY (financial year) 2018-19. Also, we added the document checklist related to Personal, Income, tax, bank, real estate, investment, etc under Section 139-(4A)
• The resident filing 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 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.