Entering one's PAN details for KYC or other purposes now requires serious care as a mistake in quoting the ten-digit identification number provided by the tax department could attract a fine of Rs 10,000.
Under section 272B of the Income Tax Act 1961, the income tax department may impose a penalty of Rs 10,000 on those found guilty of giving an incorrect PAN number.
It is applicable in situations where quoting one's PAN is a requirement, like filing your Income Tax Returns (ITR) or other KYC related procedures like making cash deposits over Rs 50,000, selling or purchasing immovable property worth more than Rs 10 lakh, applying debit/credit card, opening a demat account, buying shares, purchasing RBI issued bonds, etc.
At the Budget announcement for the current financial year, the Finance Ministry permitted quoting one's Aadhaar in the place of PAN for those who don't have one, while filing ITR. This would mean that quoting the wrong Aadhaar number could attract the same penalty for misrepresentation.
If you do not have a PAN and your income is below the taxable limit, you can file the Form 60 declaration.
Further, as per section 139A of the Income Tax Act, one can have only one PAN number for a lifetime. You can make multiple copies of a PAN card but it has to be for the same number. You can apply for a new card if you lose your PAN card or change your address or name, but there is no need to get a new PAN number.
Things to note
- If you do have two PAN numbers, surrender one as soon as possible. If found guilty, you will be charged a penalty of Rs 10,000 under section 272B.
- Link your Aadhaar to PAN before the 31 December 2019 deadline. It could be treated as invalid by the Income Tax Department after the said date if the deadline is not extended.