Section 272B — Penalty for Failure to Comply with the Provisions of Section 139A (PAN)
Case Laws & Commentary — Income-tax Act, 1961 (as amended by the Finance Act, 2026) — bharattax.co Treatise
Status: Live. A penalty of Rs. 10,000 for failure to comply with section 139A (obtaining/quoting PAN, quoting/intimating a correct PAN/Aadhaar in documents, etc.), with the penalty leviable per default in the case of certain transaction-level failures. Subject to reasonable cause under section 273B.
Finance Act, 2026: No amendment by the Finance Act, 2026.
Mechanism: Failure to comply with section 139A — not obtaining PAN, not quoting/intimating PAN (or Aadhaar in lieu), or quoting a false PAN — → penalty of Rs. 10,000 (and per-default in transaction-quoting failures) → unless reasonable cause is shown under section 273B.
Litigation profile: Litigated mainly on reasonable cause, on the requirement of opportunity before levy, and on whether multiple per-transaction penalties can be stacked.
A. COMMENTARY
Enforcing the PAN/Aadhaar quoting regime
Section 272B backs the PAN regime in section 139A — the obligation to obtain PAN, to quote it (or Aadhaar, where permitted) in returns, challans and prescribed transactions, and to quote a correct number. The standard penalty is Rs. 10,000; for failures to quote/authenticate PAN in specified transactions, the penalty can apply per default, which makes the quantum and the requirement of a fair opportunity important.
Opportunity and reasonable cause
No penalty under section 272B is to be imposed without giving the person a reasonable opportunity of being heard, and the section is within section 273B. A bona fide error in quoting PAN, a quickly-corrected mistake, reliance on a counterparty’s incorrect PAN, or genuine difficulty in obtaining PAN/Aadhaar constitutes reasonable cause.
B. STATUTORY TEXT (verbatim)
Reproduced from the Income-tax Act, 1961 as amended up to the Finance Act, 2025; Finance Act, 2026 changes are noted above.
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 of 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
(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.
C. AUTHORITIES
Direct authority is limited; the candour rule applies. The governing safeguards are the opportunity requirement and section 273B reasonable cause.
1. Opportunity and reasonable cause
Principle — opportunity of being heard is mandatory
Proposition A section 272B penalty cannot be levied without giving the person a reasonable opportunity of being heard; absence of such opportunity vitiates the order.
Use Procedural defence to a 272B levy made without hearing.
Principle — bona fide/corrected PAN error
Proposition A bona fide error in quoting PAN, reliance on a counterparty’s incorrect PAN, or a genuine difficulty in obtaining PAN/Aadhaar is reasonable cause under section 273B and defeats the penalty.
Use The substantive defence to a 272B penalty.
Prepared for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Statutory text reproduced from the official Act; case-law holdings are the author’s summaries for professional use.
CHAPTER XXI — PENALTIES IMPOSABLE
Section 272B — Penalty for Failure to Comply with the Provisions of Section 139A (PAN)
Case Laws & Commentary — Income-tax Act, 1961 (as amended by the Finance Act, 2026) — bharattax.co Treatise
Status: Live. A penalty of Rs. 10,000 for failure to comply with section 139A (obtaining/quoting PAN, quoting/intimating a correct PAN/Aadhaar in documents, etc.), with the penalty leviable per default in the case of certain transaction-level failures. Subject to reasonable cause under section 273B.
Finance Act, 2026: No amendment by the Finance Act, 2026.
Mechanism: Failure to comply with section 139A — not obtaining PAN, not quoting/intimating PAN (or Aadhaar in lieu), or quoting a false PAN — → penalty of Rs. 10,000 (and per-default in transaction-quoting failures) → unless reasonable cause is shown under section 273B.
Litigation profile: Litigated mainly on reasonable cause, on the requirement of opportunity before levy, and on whether multiple per-transaction penalties can be stacked.
A. COMMENTARY
Enforcing the PAN/Aadhaar quoting regime
Section 272B backs the PAN regime in section 139A — the obligation to obtain PAN, to quote it (or Aadhaar, where permitted) in returns, challans and prescribed transactions, and to quote a correct number. The standard penalty is Rs. 10,000; for failures to quote/authenticate PAN in specified transactions, the penalty can apply per default, which makes the quantum and the requirement of a fair opportunity important.
Opportunity and reasonable cause
No penalty under section 272B is to be imposed without giving the person a reasonable opportunity of being heard, and the section is within section 273B. A bona fide error in quoting PAN, a quickly-corrected mistake, reliance on a counterparty’s incorrect PAN, or genuine difficulty in obtaining PAN/Aadhaar constitutes reasonable cause.
B. STATUTORY TEXT (verbatim)
Reproduced from the Income-tax Act, 1961 as amended up to the Finance Act, 2025; Finance Act, 2026 changes are noted above.
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 of 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.
C. AUTHORITIES
Direct authority is limited; the candour rule applies. The governing safeguards are the opportunity requirement and section 273B reasonable cause.
1. Opportunity and reasonable cause
Principle — opportunity of being heard is mandatory
Proposition A section 272B penalty cannot be levied without giving the person a reasonable opportunity of being heard; absence of such opportunity vitiates the order.
Use Procedural defence to a 272B levy made without hearing.
Principle — bona fide/corrected PAN error
Proposition A bona fide error in quoting PAN, reliance on a counterparty’s incorrect PAN, or a genuine difficulty in obtaining PAN/Aadhaar is reasonable cause under section 273B and defeats the penalty.
Use The substantive defence to a 272B penalty.
Prepared for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Statutory text reproduced from the official Act; case-law holdings are the author’s summaries for professional use.