Circular No. 03 of 2023 – PAN becoming inoperative as per the newly substituted rule 114AAA
Circular No. 03 of 2023
F. No. 370142/14/2022-TPL
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, Dated the 28th March, 2023
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:
(i) refund of any amount of tax or part thereof, due under the provisions of the Act shall not be made to him;
(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;
(iii) where tax is deductible under Chapter X VII-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.
- 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.
- 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.
- This is in supersession of the Circular No. 07 of 2022 of CBDT dated 30th March, 2022.
- Hindi version to follow.
P. Amrutha varshini
Under Secretary (TPL-IV), CBDT
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