PAN card rules: Giving a wrong PAN number can lead to a ₹10,000 fine2 min read . Updated: 10 Nov 2019, 08:57 AM IST
- A minor error while spelling out your PAN card number can prove to be expensive
- The income tax department has made it mandatory for you to provide PAN number for specific transactions
NEW DELHI : The next time you are filling up a form where your Permanent Account Number (PAN) is also sought among other details, be careful in spelling out the ten-digit alphanumeric number because providing a wrong number can lead to a fine of ₹10,000.
Under Section 272B of the Income Tax Act 1961, the income tax department might impose a penalty of ₹10,000 if anyone is found to have given an incorrect PAN number. This provision is applicable when you are filing your income tax return (ITR) or in other cases where it is mandatory to quote PAN card number for carrying out specific financial transactions.
The income tax department has a list of less than 20 cases where quoting PAN is mandatory. Examples include opening of bank account, buying or selling of motor vehicles, buying mutual funds, shares, debentures, bonds, etc worth more than ₹50,000.
Once a PAN card has been allotted, you can not apply for it again as the PAN card remains valid for the lifetime of the owner and doesn't change even if you change addresses.
Banks often ask you to provide photocopies of your PAN card. Doing so is advisable as even if you have inadvertently given a wrong number in the form, the bank can always verify it with the photocopy.
If you do not remember PAN, you may also quote Aadhaar card number as the two documents are now interchangeable. The ₹10,000 penalty rule, however, is also applicable for giving out a wrong Aadhaar number in lieu of PAN.
Besides this, you can also be fined for failing to quote PAN or Aadhaar number in transactions where it is mandatory to do so. If you do not own a PAN card and your income is also below the taxable limit, it is better to fill up Form 60 declaration.
What happens if you are caught with two PAN cards?
Although you can have multiple copies of the same PAN card but a person is not allowed to own multiple PAN numbers. Under section 272B of the Income Tax Act, 1961, you may be asked to pay a penalty of ₹10,000.
Just in case you have got two PAN cards, it is advisable to surrender one of them as soon as possible. Any PAN which is not linked to Aadhaar is likely to be declared invalid by the income tax department after December 31.