As per Section 139AA of the Income-tax Act,1961 (‘the Act’) that every person who has been
allotted a Permanent Account Number (‘PAN’) shall also be required to link the same with his
If the PAN is not linked with Aadhaar by 31 March 2021, it shall become inoperative immediately.
Rule 114AAA of the Income-tax Rules (‘the Rules’) provides that in case of a person whose PAN
has become inoperative, it shall be deemed that he has not furnished, intimated or quoted the
PAN at all, and he shall be liable for all the consequences under the Act for not furnishing, intimating or quoting the PAN. However, the person can make his PAN operative again by linking his Aadhaar and the PAN shall be operative from the date of intimation of Aadhaar.
As per the provisions of Section 206AA of the Act, where a payee fails to furnish his PAN to the deductor, tax shall be deducted at a higher rate of:
- rate specified in the relevant provision of the Act or
- at the rates in force or
- at the rate of 20%
For more information, please visit Section 139AA of the Income-tax Act,1961.