The Central Board of Direct Taxes (CBDT) vide a notification dated 13th February 2020 has issued new Income Tax (5th Amendment) Rules 2020. With this amendment, a new Rule 114AAA is inserted that deals with manner of making permanent account number inoperative.
As per the new Rule, where a person, who has been allotted the Permanent Account Number (PAN) as on the 1st day of July, 2017 and is required to intimate or link his Aadhaar number has failed to intimate the same on or before the 31st March, 2020, the PAN of such person shall become inoperative immediately after 31st March, 2020.
Again, the person whose permanent account number has become inoperative for the above mentioned scenario, and he is required to furnish/intimate/quote his Permanent Account Number (PAN) under the Act, it shall be deemed that he has not furnished/intimated/quoted his permanent account number, and he shall be liable for all the consequences under the Act for not furnishing/intimating/quoting the permanent account number.
However, if such person has intimated his Aadhaar number after the 31st day of March, 2020, his permanent account number shall become operative from the date of intimation of Aadhaar number for the purposes of furnishing, intimating or quoting under the Act.