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The Central Board of Direct Taxes amends the Income-tax Rules, 1962 to establish the manner of making a permanent account number inoperative. The rules apply to persons who receive a permanent account number as on the 1st day of July, 2017 and fail to intimate their Aadhaar number on or before the 31st day of March, 2022. Such persons face inoperative permanent account numbers and pay a fee under sub-rule (5A) of rule 114. The permanent account number becomes operative again within thirty days of Aadhaar intimation after fee payment. Persons with inoperative numbers face consequences including no tax refunds, no refund interest, and higher tax deduction and collection rates.
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MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 28th March, 2023 INCOME-TAX
G.S.R.227(E).—In exercise of the powers conferred by section 139AA read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely: ‒
(2) They shall come into force from the 1st day of April, 2023.
"114AAA. Manner of making permanent account number inoperative.— (1) Where a person, who has been allotted the permanent account number as on the 1st day of July, 2017 and is required to intimate his Aadhaar number under sub-section (2) of section 139AA, has failed to intimate the same on or before the 31st day of March, 2022, the permanent account number of such person shall become inoperative, and he shall be liable for payment of fee in accordance with sub-rule (5A) of rule 114.
(2) Where the person referred to in sub-rule (1) has intimated his Aadhaar number under sub-section (2) of section 139AA after the 31st day of March, 2022, after payment of fee in accordance with sub-rule (5A) of rule 114, his permanent account number shall become operative within thirty days from the date of intimation of Aadhaar number.
(3) A person, whose permanent account number has become inoperative, shall be liable for further consequences for the period commencing from the date as specified under sub-rule (4) till the date it becomes operative, namely:–
(4) The provisions of sub-rule (3) shall have effect from the date specified by the Board.
(5) The Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) shall specify the formats and standards along with the procedure for verifying the operational status of permanent account number under sub-rule (1) and sub-rule (2).".
[Notification No. 15/2023 F. No.370142/14/2022-TPL] P. AMRUTHA VARSHINI, Under Secy.
Note.—The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii) vide number S.O. 969 (E), dated the 26th March, 1962 and last amended by the Income-tax (Third Amendment) Rules, 2023, vide notification number G.S.R. 118(E) dated 21st February, 2023.
