As per the newly substituted rule 114AAA, a PAN will become inoperative if the Aadhaar number is not linked to it.
,Consequences of an inoperative PAN include no refund of taxes due, no interest on refunds, and higher TDS rates under sections 206AA and 206CC.
,These consequences will take effect from July 1, 2023, and will continue until the PAN is made operative by linking the Aadhaar number, which will incur a fee of ₹1,000.
,However, individuals exempt from linking their Aadhaar under section 139AA(3) will not face these consequences.
,To avoid these consequences, link your Aadhaar to your PAN before July 1, 2023. Refer to the official notification or consult a tax professional for more information and guidance before taking any action.
Official source: Income-Tax / TDS Circular (TRACES) — No. 03/2023
This is general information, not professional advice — confirm the current position for your specific case before acting.
TDS / TCS Services
Quarterly TDS returns, Form 16 and TAN — done for you from ₹499.
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