Penalty for Failure to Apply or Quote TAN
Nature of Default
The penalty can be imposed in the following circumstances:
- Failure to apply for TAN when required under law;
- Failure to quote TAN on documents where quoting is mandatory;
- Quoting a false TAN, knowingly or with belief that it is false or not believed to be true.
Quantum of Penalty
- The Assessing Officer may impose a penalty of ₹10,000 for any of the above defaults.
- Before levying a penalty, the person must be given an opportunity of being heard.
- Penalty shall not be levied if the assessee proves reasonable cause for the failure.