Answered on November 12,2019
Under Section 272B of the Income Tax Act 1961, the income tax department might impose a penalty of INR 10,000 if anyone is found to have given an incorrect PAN number. This provision is applicable when you are filing your income tax return (ITR) or in other cases where it is mandatory to quote PAN card number for carrying out specific financial transactions.
The income tax department has a list of less than 20 cases where quoting PAN is mandatory. Examples include opening of bank account, buying or selling of motor vehicles, buying mutual funds, shares, debentures, bonds, etc worth more than INR 50,000.
If you do not remember PAN, you may also quote Aadhaar card number as the two documents are now interchangeable. The INR 10,000 penalty rule, however, is also applicable for giving out a wrong Aadhaar number in lieu of PAN.
Besides this, you can also be fined for failing to quote PAN or Aadhaar number in transactions where it is mandatory to do so. If you do not own a PAN card and your income is also below the taxable limit, it is better to fill up Form 60 declaration.