Consequences of PAN becoming inoperative as per the newly substituted rule 114AAA
F. No. 370142/14/2022-TPL
Government of IndiaMinistry of Finance
Department of Revenue
Central Board of Direct Taxes
*****
Circular No. 03 of 2023
New Delhi, Dated the 28th March, 2023
Â
Sub.: Consequences of PAN becoming inoperative as per the newly substituted rule 114AAA – reg.
Consequent to the notification substituting rule 114AAA of the Income-tax Rules, 1962 (the Rules) vide notification no. 15 of 2023 dated 28th March, 2023, it is hereby clarified that a person who has failed to intimate the Aadhaar number in accordance with section 139AA of the Income-tax Act, 1961 (the Act) read with rule 114AAA shall face the following consequences as a result of his PAN becoming inoperative:
Â
(i) refund of any amount of tax or part thereof, due under the provisions of the Act shall not be made to him;
Â
(ii) interest shall not be payable to him on such refund for the period, beginning with the date specified under sub-rule (4) of rule 114AAA and ending with the date on which it becomes operative;
Â
(iii) where tax is deductible under Chapter XVII-B in case of such person, such tax shall be deducted at higher rate, in accordance with the provisions of section 206AA; (iv) where tax is collectible at source under Chapter XVII-BB in case of such person, such tax shall be collected at higher rate, in accordance with the provisions of section 206CC.
Â
2. These consequences shall take effect from 1st July, 2023 and continue till the PAN becomes operative. A fee of one thousand rupees will continue to apply to make the PAN operative by intimating the Aadhaar number.
Â
3. The consequences of PAN becoming inoperative shall not be applicable to those persons who have been provided exemption from intimating Aadhaar number under the provisions of sub-section (3) of section 139AA of the Act.
Â
4. This is in supersession of the Circular No. 07 of 2022 of CBDT dated 30th March, 2022.
Â
5. Hindi version to follow.
Download CBDT Circular No. 03 of 2023 Click Here >>
- Benefit of ITC accrued under UP VAT Act after introduction of GST Act 2017 – SLP admitted
- Mounting auto rickshaw body on chassis, amounts to new product – Supreme Court
- Registration u/s 12A granted without applying tests laid down by Apex Court set aside
- In absence of satisfaction recorded for penalty u/s 271D, penalty couldn’t be levied
- GST Act requires personal hearing either on request, or when adverse order is contemplated
