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

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....ia Ministry of Finance Department of Revenue Central Board of Direct Taxes 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 perma....

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....mate the Aadhaar Number by the last extended notified date i.e. 31.03.2022, 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 Aa....

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....oceedings as in the case of defective returns cannot be completed once the PAN is 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 transacti....