CMA Intermediate · Direct and Indirect Taxation · PAN
A person responsible under section 262(9)(b) for ensuring correct quoting or authentication of PAN in documents of prescribed transactions fails to do so in 4 documents. What penalty may the Assessing Officer impose on that person under section 467 of the Income-tax Act, 2025?
The penalty may be Rs. 40,000. Section 467(4) allows Rs. 10,000 for each default by the person responsible for ensuring correct quoting or authentication of PAN, and four defaulted documents give 4 x Rs. 10,000.
- ARs. 10,000 in total
- BRs. 40,000Correct
- CRs. 4,000
- DRs. 20,000
Explanation
Section 467(4) applies to the person referred to in section 262(9)(b) and provides a penalty of Rs. 10,000 for each such default. With 4 defaults: 4 x 10,000 = Rs. 40,000.
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