New Delhi: Are you one of those who are liable to hold a PAN but does not have one? Well, it puts you under the radar of the Income Tax Department, who might levy heavy penalties on you.

Not only a penalty for this, but if you have tampered with your details knowingly, a penalty will be imposed for that too.

A Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department, to any “person” who applies for it or to whom the department allots the number without an application.

PAN enables the department to link all transactions of the “person” with the department. These transactions include tax payments, TDS/TCS credits, returns of income/wealth/gift/FBT, specified transactions, correspondence, and so on. PAN, thus, acts as an identifier for the “person” with the tax department.

According to the IT department website, penalty of Rs 10,000 under section 272B can be levied. The section 272B of IT Act, provides for penalty in case of default by the taxpayer in complying with the provisions relating to PAN, i.e., not obtaining PAN even when s/he is liable to obtain PAN or knowingly quoting incorrect PAN in any prescribed document or intimating incorrect PAN to the person deducing tax or person collecting tax.

Know who has to obtain a PAN card, as per the Income-Tax department

1. Every person needs it if his total income or the total income of any other person in respect of which he is assessable during the year exceeds the maximum amount which is not chargeable to tax.

2. A charitable trust is required to furnish returns under Section 139(4A).

3. Every person who is carrying on any business or profession whose total sale, turnover, or gross receipts are or is likely to exceed five lakh rupees in any year.

4. Every importer/exporter who is required to obtain Import Export code.

5. Every person who is entitled to receive any sum/income after deduction of tax at source.

6. Any person who is liable to pay excise duty or a producer or manufacturer of excisable goods or a registered person of a private warehouse in which excisable goods are stored and an authorized agent of such person.

7. Persons who issue invoices under Rule 57AE requiring registration under Central Excise Rules, 1944.

8. A person who is liable to pay the service tax and his agent.

9. Persons registered under the Central Sales Tax Act or the general sales tax law of the relevant state or union territory.

10. Every person who intends to enter into specified financial transactions in which quoting of PAN is mandatory.