Penalty for failure to comply with various provisions of Permanent Account Number (PAN) – Section 272B

The penalty provisions of section 272B of the Income Tax Act gets attracted in case the person fails to comply with various provisions of the Permanent Account Number as prescribed under section 139A of the Income Tax Act.

Most of us are well aware that the ‘Permanent Account Number’ is a ten character alphanumeric identifier which is being issued by the Income Tax Department. Section 139A covers the provisions relating to the ‘Permanent Account Number’. In case the person fails to fulfil the provisions of section 139A, then such defaulter would be liable to pay the penalty under section 272B.

The present article explains the applicability of penalty provisions of section 272B; the relevant provisions of section 139A and amount of penalty payable under section 272B.

Applicability of penalty provisions of section 272B of the Income Tax Act

The provisions of section 272B get applicable under any of the below circumstances –

1. The person fails to comply with the provisions of section 139A of the Income Tax Act; or

2. The person quotes false Permanent Account Number (PAN) or Aadhaar number in any documents referred to in section 139A (5) (c); or

3. The person intimates false Permanent Account Number (PAN) or Aadhaar number as required under section 139A (5A) or section 139A (5C); or

4. The person fails to quote the Permanent Account Number (PAN) or Aadhaar number in any of the documents referred to in section 139A (6A); or

5. The person fails to ensure that the Permanent Account Number (PAN) or Aadhaar number has duly been quoted in documents relating to the transactions referred o in section 139A (5) (c); or

6. The person fails to ensure that the Permanent Account Number (PAN) or Aadhaar number has duly been authenticated in respect of section 139A (6A).

Thus, in case of any of the above default, the defaulter would be liable to pay the penalty under section 272B.

Understanding the relevant provisions of section 139A –

As per section 139A (1) the Income Tax Act, the following categories of persons are required to apply for Permanent Account Number –

  • The person whose total income during any previous years exceeds the maximum amount which is not chargeable to tax.
  • The person (carrying on business / profession) whose total sales / turnover / gross receipts is likely to exceed INR 5 Lakhs in any previous year.
  • The person who is required to file a return of income under section 139 (4A).
  • The employer who is required to file a return of fringe benefits under section 115WD.
  • The resident (other than an Individual) who enters into a financial transaction of an amount aggregating to INR 2,50,000 or more in a financial year.

The managing director / director / trustee / partner / author / karta / chief executive officer / principal officer / office bearer of such person is also required to obtain Permanent Account Number.

Further, it is important to understand provisions of section 139A (5A) which states that the deductee (i.e. the person receiving sum / income on which TDS is deductible) needs to intimate the Permanent Account Number to the deductor (i.e. the person liable to deduct TDS).

It is also important to understand provisions of section 139A (5C) which states that the buyer / licensee / lessee referred under section 206C needs to intimate the Permanent Account Number to the Collector (i.e. the person liable to collect TCS).

Amount of penalty payable under section 272B of the Income Tax Act

In case any default, as listed above, the Assessing Officer can direct the defaulter to pay the penalty of INR 10,000 for each of the default.

The provisions of section 272B (3) mandate that before passing an order for imposing a penalty under section 272B, the defaulter should be given an appropriate opportunity of being heard.

However, it is important to discuss here that, in case the defaulter proves the reasonable cause of the failure, then no penalty can be imposed under section 272B (as per provisions of section 273B).

Read Also:-

S. No. Title
1 Section 272BB Penalty for failure to comply section 203A provisions
2 Section 272B Penalty for failure to comply with provisions of PAN
3 Section 272AA Penalty for failure in complying with provisions of section 133B
4 Section 272A Penalty for failure to answer questions or furnish information / returns/ statements or allow inspections etc
5 Section 271J Penalty on professionals for furnishing incorrect information in reports / certificates
6 Section 271I Penalty for failure in furnishing Form 15CA & Form 15CB
7 Section 271H Penalty for late filing/non-filing of TDS or TCS return
8 Penalty for failure in furnishing report or furnishing inaccurate report under section 286 – Section 271GB
9 Section 271GA Penalty for failure in furnishing the information / document in Form 49D as required under section 285A
10 Section 271G Penalty for failure to furnish information / document as per provisions of section 92D
11 Section 271FB Penalty for default in furnishing return of fringe benefits
12 Section 271FAB Penalty for failure to furnish statement / information / document by an eligible investment fund
13 Penalty for providing inaccurate statement of financial transaction or reportable account- Section 271FAA
14 Section 271FA Penalty for failure in furnishing statement of financial transactions or reportable account
15 Section 271E Penalty for contravening provisions of section 269T
16 Section 271DB | Penalty for contravening provisions of section 269SU
17 Section 271DA Penalty for contravening provisions of section 269ST
18 Section 271CA Penalty for failure to collect tax at source (TCS)
19 Section 271D Penalty for contravening provisions of section 269SS
20 Section 271C Penalty for failure / non-deduction / non-payment of TDS
21 TDS Rate Chart for AY 2020-21 and AY 2021-22
22 Section 271BA Penalty for failure to furnish section 92E report
23 Section 271B Penalty for failure to get accounts audited
24 Section 271AAC Penalty in respect of certain specified income
25 Section 271AA Penalty for failure to maintain Transfer Pricing documents
26 Section 271A Penalty for failure to keep / maintain or retain books of accounts, documents
27 Section 270A(1) Penalty for under-reporting & misreporting of income
28 Section 269SU Acceptance of payment through electronic modes
29 Section 234F Late fees for default in filing of income tax return
30 Section 234E Late Fee for default in filing of TDS / TCS returns
31 Section 158BFA(2) – Penalty on undisclosed income for block period
32 Section 140A(3) Penalty for non-payment of self-assessment tax

Author Bio

Qualification: CA in Practice
Company: Taxguru Consultancy / Taxguru Edu
Location: Mumbai, Maharashtra, IN
Member Since: 27 Feb 2017 | Total Posts: 854
A Blogger by Passion and a Chartered Accountant by Profession. View Full Profile

My Published Posts

More Under Income Tax

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

November 2020
M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
30