We might be a tad lackasdical while filing out forms but filling out the wrong 10-digit alphanumeric number can cost us heavily.
Under section 272B of the Income Tax Act 1961, the IT department can impose a penalty of Rs 10,000 for an incorrect pan number. The provision is applicable when you are filling your Income Tax Returns or in cases where it’s mandatory to quote a PAN card number for financial transactions.
The IT department states that a PAN card is necessary when opening a bank account, buying or selling vehicles, buying mutual funds, shares, debentures and bonds.
Your PAN card, once allotted, can’t be changed. In fact, the reason banks ask for photocopies of your PAN card is to ensure that you’ve not made a mistake while filing them.
If you don’t have a PAN Card, you can use your Aadhaar instead but even that carries a fine.
What happens if you are caught with two PAN cards?
You will be charged Rs 10,000 if you’ve two Pan Cards. If you get two by mistake, surrender one immediately.
The PAN Card, till the Aadhaar came along, was the know-all and be-all of documents for Indians when it tangled with the bureaucracy. Whether it’s opening a new bank account, filling Income Tax Returns, making large financial transactions, the Permanent Account Number (PAN) card is mandatory. Or is it?
Documents you can use instead of PAN cards
The Income Tax Department does provide two other options when the PAN Card is not there:
How banks and govt’s verify your PAN card
For your financial transactions, Permanent Account Number (PAN) holds a significance and you need this crucial document while taking a home loan, buying a car, or taking personal loan. The PAN card is also commonly used while opening a new bank account, demat accout or even while joing new office, one is asked to give PAN card details.
The PAN card is issued by Income Tax department through NSDL or UTI. It is a 10-digit alphanumeric ID card. It is unique to each income tax assessee and is a must for filing income tax returns (ITR) and carrying out several transactions. It is unique to each income tax assessee and is a must for filing income tax returns (ITR) and carrying out several transactions.