Penalty for failure to comply with the provisions of section 262
[Section-467 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 467(1) of Income Tax Act 2025
467(1) If a person fails to comply with the provisions of section 262, the Assessing Officer may impose a penalty of ten thousand rupees on him.
Section 467(2) of Income Tax Act 2025
467(2) If a person, required to quote or intimate his permanent account number or Aadhaar number in any document as referred to in section 262(9)(a), provides or quotes or intimates a number which is false, knowing or believing it to be false, the Assessing Officer may impose a penalty of ten thousand rupees on him for each such default.
Section 467(3) of Income Tax Act 2025
467(3) If a person fails to quote or authenticate his permanent account number or Aadhaar number in any document referred to in section 262(9)(a), the Assessing Officer may impose a penalty of ten thousand rupees on him for each such default.
Section 467(4) of Income Tax Act 2025
467(4) If a person referred to in 262(9)(b) responsible for ensuring the correct quoting or authentication of permanent account number or Aadhaar number, in documents relating to transactions prescribed under section 262(9)(a) fails to do so, the Assessing Officer may impose a penalty of ten thousand rupees on him for each such default.
FAQs on Section 467 of Income Tax Act 2025
What is the penalty for failure to comply with the provisions of section 262?
If a person fails to comply with section 262, the Assessing Officer may impose a penalty of ₹10,000.
What happens if someone quotes a false PAN or Aadhaar number in a document covered under section 262(9)(a)?
If a person knowingly or believing it to be false quotes or intimates a false PAN or Aadhaar number, the Assessing Officer may impose a penalty of ₹10,000 for each such default.
What is the penalty for failing to quote or authenticate PAN or Aadhaar number in prescribed documents under section 262(9)(a)?
A penalty of ₹10,000 may be imposed by the Assessing Officer for each default of not quoting or authenticating the PAN or Aadhaar number.
Who is responsible for ensuring correct quoting or authentication of PAN or Aadhaar under section 262(9)(b)?
The person referred to in section 262(9)(b), who is responsible for verifying that the correct PAN or Aadhaar is quoted or authenticated, is accountable for compliance.
What is the penalty for a person responsible under section 262(9)(b) if they fail to ensure correct quoting or authentication of PAN or Aadhaar?
The Assessing Officer may impose a penalty of ₹10,000 on such responsible person for each instance of default.
Does each incorrect or missing PAN/Aadhaar instance attract a separate penalty?
Yes, each separate instance of default attracts a separate penalty of ₹10,000.
From when are these penalty provisions applicable?
These provisions are applicable from 1st April, 2026, under section 467 of the Income Tax Act, 2025.
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