CMA Intermediate · Direct and Indirect Taxation · PAN
Ravi Traders knowingly quotes a false PAN in each of three separate documents for prescribed transactions under section 262(9)(a). Under section 467 of the Income-tax Act, 2025, what is the maximum total penalty the Assessing Officer may impose under sub-section (2) for these defaults?
The maximum is Rs. 30,000. Section 467(2) permits Rs. 10,000 for each default of knowingly quoting a false PAN or Aadhaar, and three documents are three defaults, so 3 x Rs. 10,000 equals Rs. 30,000.
- ARs. 10,000 in all, as a single penalty
- BRs. 30,000Correct
- CRs. 3,000
- DRs. 1,00,000
Explanation
Section 467(2) allows a penalty of Rs. 10,000 for each such default of quoting a false number knowingly. Three documents mean three defaults: 3 x 10,000 = Rs. 30,000. Rs. 10,000 in all ignores the 'each default' wording.
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