Section 467 — Penalty for failure to comply with the provisions of section 262. Successor to s.272B of the 1961 Act.
Section 467 is in Chapter XXI — Penalties, which runs from section 439 to section 472.
Four separate penalties, each of Rs 10,000, all imposable by the Assessing Officer. Sub-section (1): where a person fails to comply with the provisions of section 262, a penalty of Rs 10,000. Sub-section (2): where a person required to quote or intimate his Permanent Account Number or Aadhaar number in a document referred to in section 262(9)(a) provides, quotes or intimates a number which is false, knowing or believing it to be false, Rs 10,000 for each such default. Sub-section (3): where a person fails to quote or authenticate his Permanent Account Number or Aadhaar number in such a document, Rs 10,000 for each such default. Sub-section (4): where the person referred to in section 262(9)(b), responsible for ensuring correct quoting or authentication in documents relating to transactions prescribed under section 262(9)(a), fails to do so, Rs 10,000 for each such default.
The section carries a footnote recording that "section 262" was substituted by Act No. 4 of 2026 with effect from 1 April 2026.
The Permanent Account Number and Aadhaar number are what link a transaction to a taxpayer, so a document carrying no number, or a false one, breaks the trail at its source. The section prices that break at both ends — on the person who should quote or authenticate, and on the entity required to verify — and by charging per default keeps the sanction proportionate to the number of broken records.
| What | Figure | The condition on it | Where |
|---|---|---|---|
| Penalty for failure to comply with section 262 | Rs 10,000 | A single penalty; this sub-section does not charge per default | Sub-section (1) |
| Penalty for knowingly quoting a false number | Rs 10,000 for each such default | The number in a document referred to in section 262(9)(a) must be false and the person must know or believe it to be false | Sub-section (2) |
| Penalty for failure to quote or authenticate | Rs 10,000 for each such default | In a document referred to in section 262(9)(a) | Sub-section (3) |
| Penalty on the person responsible for verification | Rs 10,000 for each such default | A person referred to in section 262(9)(b) who fails to ensure correct quoting or authentication in documents relating to prescribed transactions | Sub-section (4) |
The distinction that matters is between the single penalty in sub-section (1) and the per-default penalties in sub-sections (2) to (4), which make exposure a multiple of the number of documents. Sub-section (2) needs knowledge or belief that the number is false, so an honest error moves the case to sub-section (3), where the amount is the same but no mental element is required. Sub-section (4) puts the same per-default exposure on the verifying person under section 262(9)(b), so both sides of a prescribed transaction can be penalised over the same document.
An entity required under section 262(9)(b) to ensure correct quoting of the Permanent Account Number in prescribed transaction documents fails to do so in forty documents. Sub-section (4) allows Rs 10,000 for each such default, so the exposure is Rs 4,00,000, not Rs 10,000 — the per-default measure in sub-sections (2) to (4) is what distinguishes them from the single penalty in sub-section (1).
In a penalty notice and order from the Assessing Officer, addressed either to a person who quoted no Permanent Account Number or Aadhaar number, or a wrong one, in a document prescribed under section 262(9)(a), or to the entity responsible under section 262(9)(b) for ensuring it was correctly quoted or authenticated.
If a person fails to comply with the provisions of section 262, the Assessing Officer may impose a penalty of Rs. 10000 on him.
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 Rs. 10000 on him for each such default
See the full 1961 to 2025 concordance.