Penalty Increased for Misquoting of Aadhaar or PAN number from 01.09.2019 :Section 272B income tax

By | July 14, 2019
(Last Updated On: July 14, 2019)

Section 272B after Amendment by Finance Bill 2019 w.e.f 01.09.2019

Penalty for failure to comply with the provisions of section 139A.

272B. (1) If a person fails to comply with the provisions of section 139A, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten thousand rupees.

(2) If a person who is required to quote his permanent account number *[or Aadhaar number, as the case may be], in any document referred to in clause (c) of sub-section (5) of section 139A, or to intimate such number as required by sub-section (5A)  or sub-section (5C) of that section, quotes or intimates a number which is false, and which he either knows or believes to be false or does not believe to be true, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum ten thousand rupees *[for each such default].

*[“(2A) If a person, who is required to quote his permanent account number or Aadhaar number, as the case may be, in documents referred to in sub-section (6A) of section 139A or authenticate such number in accordance with the provisions of the said sub-section, fails to do so, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten thousand rupees for each such default.

(2B) If a person, who is required to ensure that the permanent account number or the Aadhaar number, as the case may be, has been,––

(i) duly quoted in the documents relating to transactions referred to in clause (c) of sub-section (5) or in sub-section (6A) of section 139A; or

(ii) duly authenticated in respect of transactions referred to under sub-section (6A) of that section,

fails to do so, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten thousand rupees for each such default.”]

 

(3) No order under sub-section (1) or sub-section (2) or *[sub-section (2A) or sub-section (2B)] shall be passed unless the person, on whom the penalty is proposed to be imposed, is given an opportunity of being heard in the matter.

*[Amendment  with effect from the 1st day of September, 2019 :-]

Clause 64 of Finance Bill 2019

Amendment of section 272B

In section 272B of the Income-tax Act, with effect from the 1st day of September, 2019,––

(a) in sub-section (2),–– (i) for the words “permanent account number”, the words “permanent account number or Aadhaar number, as the case may be,” shall be substituted

(ii) for the words “ten thousand rupees”, the words “ten thousand rupees for each such default” shall be substituted;

(b) after sub-section (2), the following sub-sections shall be inserted, namely:––

“(2A) If a person, who is required to quote his permanent account number or Aadhaar number, as the case may be, in documents referred to in sub-section (6A) of section 139A or authenticate such number in accordance with the provisions of the said sub-section, fails to do so, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten thousand rupees for each such default.

(2B) If a person, who is required to ensure that the permanent account number or the Aadhaar number, as the case may be, has been,–– (i) duly quoted in the documents relating to transactions referred to in clause (c) of sub-section (5) or in sub-section (6A) of section 139A; or (ii) duly authenticated in respect of transactions referred to under sub-section (6A) of that section, fails to do so, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten thousand rupees for each such default.”;

c) in sub-section (3), for the word, brackets and figure “sub-section (2)”, the words, brackets, figures and letters “sub-section (2) or sub-section (2A) or sub-section (2B)” shall be substituted

Explanation of Clause 64 of Finance Bill 2019

Clause 64 of the Bill seeks to amend section 272B of the Incometax Act relating to penalty for failure to comply with the provisions of section 139A.

The said section, inter alia, provides for penalty for failure to comply with the provisions of section 139A.

It is proposed to suitably amend the sub-section (2) of the said section, so that penalty may also be levied on false quoting or non-intimation of Aadhaar number. It is further proposed that penalty of ten thousand rupees shall be levied for each such default.

It is also proposed to insert a new sub-section (2A) to provide that if a person, who is required to quote and also authenticate his permanent account number or Aadhaar number, as the case may be, in accordance with the provisions of section (6A), fails to do so, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten thousand rupees for each such default.

It is also proposed to insert a new sub-section (2B) to provide that if a person who is required to ensure that the permanent account number or the Aadhaar number, as the case may be, quote in the documents relating to transaction prescribed in clause (c) of sub-section (5) of section 139A or authenticate such number in respect of transactions prescribed under sub-section (6A) of that section, fails to do so, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten thousand rupees for each such default.

It is also proposed that before passing a penalty order under the proposed new sub-section (2A) and sub-section (2B), a person shall be heard.

These amendments will take effect from 1st September, 2019.

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