TMI BlogClarification with respect to relaxation of provisions of rule 114AAA of Income-tax Rules, 1962 prescribing the manner of making Permanent Account Number (PAN) inoperativeX X X X Extracts X X X X X X X X Extracts X X X X ..... s New Delhi, Dated the 30th of March, 2022 Sub.: Clarification with respect to relaxation of provisions of rule 114AAA of Income-tax Rules, 1962 prescribing the manner of making Permanent Account Number (PAN) inoperative - reg. Instances had come to the notice of the Income-tax Department that multiple permanent account numbers (PANs) have been allotted to one person or one PAN has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.2022, 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 complete the process of PAN-Aadhaar linking for identifying bogus PANs. This section provides that where a person who is required to intimate his Aadhaar under sub-section (2) of section 139AA fails to do so on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inoperative (v) Tax will be required to be deducted at a higher rate as PAN becomes inoperative 4.1 In addition to the above, the tax payer might face difficulty at various other for a like banks and other financial portals, as PAN is one of the important KYC criterion for all kinds of financial transactions. 5. Hence, in order to have smooth application of section 234H and existing ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to in the said sub-rule or specified in paras 4 and 4.1 above. However, the tax payer shall be liable to pay a fee in accordance with sub-rule (5A) of rule 114 . 6. Hindi version to follow. Shefali Singh Under Secretary (TPL-IV), CBDT - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanagementindia - taxmanagement - taxmanageme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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