The Central Board of Direct Taxes (CBDT) on March 28, 2023, issued a notification stating the Consequences of PAN becoming inoperative as per the newly substituted rule 114AA.
The following has been stated namely: -
• Refund of any amount of tax or part thereof, due under the provisions of the Act shall not be made to him
• 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
• Where tax is deductible under Chapter XVJJ-B in case of such person, such tax shall be deducted at a higher rate, in accordance with the provisions of section 206AA
• Where tax is collectible at source under Chapter XVJJ-BB in case of such person, such tax shall be collected at a higher rate, in accordance with the provisions of section 206CC
The PAN can be made operative again in 30 days, upon intimation of Aadhaar to the prescribed authority after payment of a fee of Rs. 1,000.
Those persons who have been provided exemption from intimating the Aadhaar number under the provisions of sub-section (3) of section 139AA of the Act will not be liable for the consequences mentioned above.
This is in supersession of the Circular No. 07 of 2022 of CBDT dated March 30, 2022.
[Notification No. 03 of 2023]
