PAN Card is as essential for income-tax as for any transaction of a huge amount. It’s observed the people often submit their wrong PAN during filling up any respective form. According to the rule, if you provide the wrong PAN you have to risk a fine of up to ₹10,000.
According to Section 272B of the Income Tax Act 1961, the Income Tax Department can charge you ₹10,000 as a penalty of the same. So, you are suggested to better be careful while providing the PAN.
Mentioning wrong or false PAN in the case of submitting Income Tax or transaction of a lump-sum amount is a punishable offence. The Act previously mentioned will be applied in this litigation.
Presently there are at least 20 cases listed where the Income Tax Department instruct people to mandatorily submit PAN correctly.
Like Opening a bank account, buying a car, investing in mutual funds and buying shares, bonds or debentures few more are in the list where inserting PAN is mandatory.
Once a PAN Card is issued to a person he/she cannot apply the same for the second time. PAN of a person is valid for his/her lifetime.
Recently, the government informed that the Aadhaar number will be a substitute of PAN in certain cases.
