2016: False Info by Non-PAN Holders Can Land Them in Jail

Published: 31st December 2015 06:16 PM  |   Last Updated: 31st December 2015 06:16 PM   |  A+A-


NEW DELHI: A false declaration by an individual not possessing PAN card for certain value of transactions can land him upto a seven-year jail term and a hefty fine as part of Income Tax regulations that will come into force from tomorrow.

As part of the directives issued by the government for implementation of the Permanent Account Number (PAN) regime from January 1, any person not having a PAN but undertaking a transaction which requires a mandatory quoting of it, will have to fill up 'Form No. 60'.

The one-page form seeks personal details of the person undertaking the transaction along with a valid proof of identity and address, like Aadhaar and Elector's Photo Identity Card (EPIC) among others.

"There are people who may not have a PAN and still make a large transaction for which quoting of PAN is now essential.

In such cases, such people have to fill Form 60 and making a false declaration of information in this will make them liable for punishment which could be a maximum of seven years of Rigorous Imprisonment (RI) with fine or a minimum of three months RI with fine under IT laws," a senior tax department official said.

The department is empowered to file a prosecution case against such people under section 277 of the IT Act (false statement in verification), the official said.

The said Act stipulates that in a case where tax sought to be evaded exceeds Rs 25 lakh (by way of false declaration in Form 60), the punishment is RI between 6 months-7 years with fine and in cases below this monetary limit, the punishment will be RI between 3 months-2 years with fine.

In order to achieve a two-pronged target of curbing the circulation of black money and widening tax base, the government has recently notified changes in the monetary limits that will require mandatory quoting of PAN.

PAN has been made compulsory from tomorrow for transactions like cash payment of hotel or foreign travel bill exceeding Rs 50,000, purchase of jewellery above Rs two lakhs in cash or card, purchase of immovable property of over Rs 10 lakh, term deposits exceeding Rs 50,000 or Rs 5 lakh in a year with banks, Post Offices and Non Banking Financial Companies among others. .

Stay up to date on all the latest Nation news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp