Penalty for Failure to Comply with the Provisions of PAN
Nature of Default
The penalty can be imposed for the following defaults:
• Failure to apply for PAN when required.
• Failure to quote PAN or Aadhaar in returns, challans, or other documents.
• Failure to intimate PAN or Aadhaar to the deductors or collectors of tax.
• Quoting or intimating a false or incorrect PAN or Aadhaar knowingly.
• Failure to quote PAN or Aadhaar in documents pertaining to financial transactions prescribed under Rule 114B;
• Failure to authenticate PAN or Aadhaar.
• Obtaining more than one PAN.
Quantum of Penalty
• Penalty of Rs. 10,000 for each default may be imposed by the Assessing Officer.
• 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.