Section 272B of Income Tax Act for AY 2023-24

Section 272B of Income Tax Act 1961 amended by Finance Act and Income-tax Rules. Penalty for failure to comply with section 139A.

Amended and updated notes on section 272B of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Penalty for failure to comply with the provisions of section 139A.

Chapter XXI (Sections 270A to 275) of the Income Tax Act 1961 deals with the provisions related to penalties imposable. Section 272B of IT Act 1961 provides for Penalty for failure to comply with the provisions of section 139A.

Recently, we have discussed in detail section 272AA (Penalty for failure to comply with the provisions of section 133B) of IT Act 1961. Today, we learn the provisions of section 272B of Income-tax Act 1961. The amended provision of section 272B is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 272B of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.

Section-272B: Penalty for failure to comply with the provisions of section 139A

Section 272B(1) of Income Tax Act

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.

Section 272B(2) of Income Tax Act

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.

Section 272B(2A) of Income Tax Act

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.

Section 272B(2B) of Income Tax Act

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.

Section 272B(3) of Income Tax Act

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.


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