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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.... 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 permanent account numbers (PANs) have been a....

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....ended 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 Aadhaar under sub-section (2) of section ....

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....eturns 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 transactions. 5. Hence, in order to have smoo....