CBDT has issued an Order dated 1st April 2023 and specified 1st July 2023 as the date from which the PAN shall become inoperative if the PAN is not linked to Aadhaar. Further, CBDT vide Circular No. 3/2022 dated 28.03.2023 (in supersession of earlier Circular No. 7/2022 dated 30.03.2022) has clarified the consequences of failure to link PAN with Aadhaar and clarifies the specified date for the purpose of Rule 114AAA(2) of the Income-tax Rules, 1962 (‘Rules’).
This supersedes the earlier Order dated 30.03.2022 under which 1st April, 2023, was specified as the date from which the PAN will become inoperative. With this, the government has given a window of three more months to link the PAN with Aadahhr after payment of late fees of Rs. 1,000.
Section 139AA of the Income-tax Act, 1961 (‘Act’) provides for linking of PAN with Aadhaar by a notified date which is 31st March 2022 as per Notification No. 113/2021 dated 17.09.2021.
It is also provided that in case of failure to intimate the Aadhaar number, the PAN allotted to the person shall be made inoperative, after the date so notified, in such manner as may be prescribed.
In this regard, CBDT has prescribed Rule 114AAA to prescribe the manner of making permanent account number (PAN) inoperative. Rule 114AAA is amended on 28.03.2023 vide Notification No. 15/2023.
CBDT vide Notification No. 17/2022 dated 29.03.2022 in G.S.R. 229(E) through Income-tax (Third Amendment) Rules, 2022 amended Rule 114AAA(2) to specify the ‘specified date’ from which this sub-rule will take effect as amended by Notification No. 15/2023 dated 28.03.2023.
In this regard, CBDT vide an Order dated 01.04.2023 specifies the date 1st July 2023 as the ‘specified date’ from which the PAN shall become inoperative under amended Rule 114AAA(3).
In case of failure to intimate the Aadhaar Number by the last extended notified date i.e. 30.06.2023, the PAN allotted to the person shall be made inoperative in accordance with the provisions of the Act.
Further, the Finance Act, 2021 inserted a new section 234H in the Act to provide of payment of late fees for linking PAN-Aadhaar w.e.f. 01.04.2022.
This section provides that where a person who is required to intimate his Aadhaar under subsection (2) of section 139AA fails to do so on or before a notified date, he shall be liable to pay a fee not exceeding a sum of one thousand rupees, as may be prescribed, at the time of making intimation under sub-section (2) of section 139AA after the said date.
Earlier, the Board intimated the decision of the government to extend the due date for linking PAN with Aadhaar vide a Press Release dated 28.03.2023.
However, the person shall be liable to pay a fee in accordance with sub-rule (5A) of rule 114.
Thus, if a person links his PAN with Aadhaar by 30th June 2023, he is required to pay late fees of Rs. 1,000.
If the person fails to link his PAN with Aadhaar by 30th June, his PAN will become inoperative from 1st July 2023. If he intends to link his PAN with Aadhaar after 30th June 2023, then he can do so after payment of late fees of Rs. 1,000 and, thereafter his PAN will become operative within 30 days of such linking.
Read the full text of the CBDT Order dated 01.04.2023 on New Specified Date for PAN to become Inoperative
F.No.370142/14/2022-TPL
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
(TPL Division)
***
New Delhi, dated 1st April, 2023
ORDER
Sub.: Specified date for the purposes of sub-rule (4) to rule 114AAA of the Income-tax Rules, 1962 - reg.
In exercise of the powers conferred under sub-rule (4) of rule 114AAA of the Income-tax Rules, 1962 (the Rules), the Central Board of Direct Taxes (the Board) hereby specifies the 1st day of July, 2023 as the date on which the provisions of sub-rule (3) of rule 114AAA shall take effect.
2. This is in supersession of the earlier order dated 30th March, 2022 issued by the Board for the purposes of proviso to sub-rule (2) to rule 114AAA of the Rules.
3. Hindi version to follow.
(Prajna Paramita)
Director (TPL-IV)
Download CBDT Order dated 01.04.2023 on Specified Date for PAN to become Inoperative in PDF format
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