Home› India› Ministry of Finance› Notification No. 15/2023...
Date: 28-Mar-2023 Category: Extra Ordinary State: Union Government Country: India

Notification No. 15/2023

Issued by Ministry of Finance · Department of Revenue

Research with AI Agent Chat with Document Generate Summary Translate Helpful Share Add to Project Create Task

Executive Summary & Key Takeaways

What it means

  • The notification introduces the Income-tax (Fourth Amendment) Rules, 2023, which amends the Income-tax Rules, 1962, regarding the operational status of Permanent Account Numbers (PAN) that have not been linked to Aadhaar numbers as required under Section 139AA of the Income-tax Act, 1961.

Key Changes

  • Rule 114AAA is substituted, detailing the manner of making PAN inoperative.
  • If a person was allotted a PAN as of July 1, 2017, and was required to intimate their Aadhaar number under Section 139AA(2) but failed to do so by March 31, 2022, their PAN becomes inoperative and they are liable to pay a fee as per Rule 114(5A).
  • If the person intimates their Aadhaar number after March 31, 2022, and pays the fee, their PAN will become operative within 30 days from the date of Aadhaar intimation.
  • A person with an inoperative PAN faces consequences from a date specified by the Board until the PAN becomes operative again. These consequences include:
  • No refund of any tax amount due under the Act.
  • No interest payable on such refunds during the inoperative period.
  • Tax deduction at source (TDS) under Chapter XVIIB will be at a higher rate as per Section 206AA.
  • Tax collection at source (TCS) under Chapter XVII-BB will be at a higher rate as per Section 206CC.
  • The Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) will specify the formats, standards, and procedures for verifying the operational status of PAN.

Impact Analysis

Taxpayers

  • Taxpayers should ensure that their PAN is operative to avoid any disruptions in financial transactions and tax-related matters.

Tax Authorities

  • Increased administrative burden to manage and track inoperative PANs and subsequent reactivations.

Businesses and Organizations

  • Increased compliance burden due to the need to verify PAN status and apply appropriate tax rates.

Suggested Action Items

  • Provide a user-friendly online tool for taxpayers and businesses to check the operational status of PANs in bulk.

Key Entities Referenced

Income-tax Act, 1961: The principal legislation governing income tax in India. Sections 139AA and 295 are specifically mentioned. Income-tax Rules, 1962: The rules framed under the Income-tax Act, 1961, providing detailed procedures and guidelines for implementing the Act's provisions. Rule 114AAA and 114(5A) are specifically amended/mentioned. Central Board of Direct Taxes (CBDT): The apex body responsible for the administration of direct taxes in India. It issues notifications and circulars to clarify and implement the provisions of the Income-tax Act. Permanent Account Number (PAN): A ten-digit alphanumeric identifier issued by the Income Tax Department to individuals and entities. It serves as a primary key for identifying taxpayers and tracking financial transactions. Aadhaar: A twelve-digit unique identity number issued to residents of India by the Unique Identification Authority of India (UIDAI). Section 139AA of the Income-tax Act mandates linking PAN with Aadhaar. Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems): Responsible for specifying the formats and standards along with the procedure for verifying the operational status of permanent account number.
Official Source Record View Original Source →
See Full Document Text
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 ससीी..जजीी..--डडीी..एएलल..--अअ..--2288003322002233--224444772266 xxxGIDHxxx CCGG--DDLL--EE--2288003322002233--224444772266 xxxGIDExxx असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (i) PART II—Section 3—Sub-section (i) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 185] नई दिल्ली, मगं लिार, माच ड28, 2023/चत्रै 7, 1945 No. 185] NEW DELHI, TUESDAY, MARCH 28, 2023/CHAITRA 7, 1945 जित्त मत्रं ालय (रािस्ट्ि जिभाग) (केन्द्रीय प्रत्यक्ष कर बोडड) अजधसचू ना नई दिल्ली, 28 माच,ड 2023 आय-कर सा.का.जन. 227(अ).—केन्द्रीय प्रत्यक्ष कर बोड,ड आय-कर अजधजनयम, 1961 (1961 का 43) की धारा 295 के साथ पठित धारा 139कक द्वारा प्रित्त िजियों का प्रयोग करत े हुए, आय-कर जनयम, 1962 का और संिोधन करने के जलए जनम्नजलजखत जनयम बनाता ह,ै अथाडत ् :- 1. सजं क्षप्त नाम और प्रारंभ.—(1) इन जनयमों का संजक्षप्त नाम आय-कर (चौथा संिोधन) जनयम, 2023 ह ै। (2) य े1 अप्रलै , 2023 को प्रित्तृ होंगे । 2. आय-कर जनयम, 1962 के जनयम 114ककक के स्ट्थान पर, जनम्नजलजखत जनयम रखा िाएगा, अथातड ्:- “114ककक. स्ट्थायी लेखा संखयांक अप्रचालनीय करन े की रीजत,-(1) िहां कोई व्यजि जिस े 1 िुलाई, 2017 तक स्ट्थायी लेखा संखयांक आिंठित दकया गया ह ै तथा उससे धारा 139कक की उपधारा (2) के अधीन उसका आधार संखयांक सूजचत करना अपेजक्षत ह,ै 31 माच,ड 2022 को या उसके पूिड उसे सूजचत करने में असफल रहा है, ऐसे व्यजि का स्ट्थायी लेखा संखयांक अप्रचालनीय हो िाएगा, तथा िह जनयम 114 के उपजनयम (5क) के अनुसार फीस के संिाय का िायी होगा । 2029 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] (2) िहां उपजनयम (1) म ें जनर्िष्टड व्यजि न े धारा 139कक की उपधारा (2) के अधीन 31 माचड, 2022 के पश्चात ् उसका आधार संखयांक जनयम 114 के उपजनयम (5क) के अनुसार फीस के संिाय के पश्चात ् सूजचत दकया है, उसका स्ट्थायी लेखा संखयांक आधार संखया सूजचत करन े की तारीख से तीस दिन के भीतर प्रचालनीय हो िाएगा । (3) कोई व्यजि जिसका स्ट्थायी लेखा संखयांक अप्रचालनीय हो गया है, उपजनयम (4) के अधीन यथा जिजनर्िडष्ट तारीख से आरंभ होन े िाली अिजध स े इसके प्रचालनीय होन े की तारीख तक के जलए अजतठरि पठरणामों का िायी होगा, अथाडत:् - (i) अजधजनयम के उपबंधों के अधीन िोध्य कर की दकसी रकम या उसके भाग को प्रजतिाय नहीं दकया िाएगा ; (ii) उपजनयम (4) के अधीन जिजनर्िडष्ट तारीख से आरंभ होन े िाली तथा इसके प्रचालनीय होने की तारीख को समाप्त होने िाली अिजध के जलए ऐसे प्रजतिाय पर ब्याि संिेय नहीं होगा ; (iii) िहां ऐसे व्यजि के मामल े में अध्याय-17ख के अधीन कर किौती योग्य है, ऐसा कर धारा 206कक के उपबंधों के अनुसार उच्चतर िर पर किौती दकया िाएगा ; (iv) िहा ं ऐसे व्यजि के मामले म ें अध्याय-17खख के अधीन कर स्रोत पर सग्रं हणीय ह,ै ऐसा कर धारा 206गग के उपबंधों के अनुसार उच्चतर िर पर सग्रं जहत दकया िाएगा : (4) उपजनयम (3) के उपबंध बोडड द्वारा जिजनर्िडष्ट तारीख से प्रभािी होंगे । (5) आय-कर प्रधान महाजनििे क (प्रणाली) या आय-कर महाजनिेिक (प्रणाली) उपजनयम (1) और उपजनयम (2) के अधीन स्ट्थायी लेखा संखयांक की प्रचालनीय प्राजस्ट्थजत के सत्यापन के जलए प्रदिया के साथ प्ररूप और मानक जिजनर्िडष्ट करेंग े।”। [अजधसूचना स.ं 15/2023 फा. सं. 370142/14/2022–िीपीएल] पी अमृता िर्षडणी, अिर सजचि ठिप्पण.- मलू जनयम, भारत के रािपत्र, असाधारण, भाग 2, खंड 3, उपखंड (ii) म ें का.आ. 969(अ), तारीख 26 माच,ड 1962 द्वारा प्रकाजित दकए गए थ े और सा.का.जन. 118(अ), तारीख 21 फरिरी, 2023 द्वारा आय-कर (तीसरा संिोधन) जनयम, 2023 द्वारा अंजतम बार संिोजधत दकए गए । 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: ‒ 1. Short title and commencement.—(1) These rules may be called the Income-tax (Fourth Amendment) Rules, 2023. (2) They shall come into force from the 1st day of April, 2023. 2. In the Income-tax Rules, 1962, for rule 114AAA, the following rule shall be substituted, namely: — “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[भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 3 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:– (i) refund of any amount of tax or part thereof, due under the provisions of the Act shall not be made; (ii) interest shall not be payable on such refund for the period, beginning with the date specified under sub-rule (4) and ending with the date on which it becomes operative; (iii) where tax is deductible under Chapter XVIIB in case of such person, such tax shall be deducted at higher rate, in accordance with provisions of section 206AA; (iv) where tax is collectible at source under Chapter XVII-BB in case of such person, such tax shall be collected at higher rate, in accordance with provisions of section 206CC: (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. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

Continue your research

Related Documents from Ministry of Finance