As per Income Tax rulings regarding issuing of Form-16 or 16A, deductors are not responsible for non-mention of payees PAN in it. In the other words we can say if the TDS Deductee or Taxpayee not provided his PAN before issuing Form-16 or 16A, there is no penalty on deductor for non-mention payee’s PAN in there.
The following points will clarify the same:
If payee doesn’t furnish his PAN to deductor as required by section 139A(5A), deductor can’t be penalized under section 139A(5B) read with section 223B(1) for not mentioning payee’s PAN in TDS certificate issued to payee in Form 16A.
Where there is nothing on record to show that contractors to whom certain amounts were paid by asssessee after deducting TDS under section 194C/194J had intimated their PANs to assessee (deductor) as required by section 139A(5A), penalty can’t be imposed on assessee (deductor) under section 272B(1) for non-mention of the PANs of the contractors(payees) in Form 16A TDS certificates issued to them.
Default by contractors (payees) in furnishing their PANs to assessee (deductor) as per the requirements of section 139A(5A) is “sufficient cause” within the meaning of section 273B for deductor’s contravention of section 139A(5B) (failing to mention PANs of payee-contractors on their TDS certificates in Form 16A issued to payee-contractors). In view of this sufficient cause, no penalty imposable.