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Circular No.6 /2024F. No. 275/412024-IT(B) is issued by the Government of India, through the Ministry of Finance and the
Department of Revenue, to announce a partial modification to
Circular No. 3 of 2023 dated 28.03.2023.
Circular No. 3 of 2023 dated 28.03.2023 issued by the Board may be read as follows:
“Consequent to the notification substituting rule 114 AAA of the Income-tax Rules. 1962 (the Rules) vide notification no. 15 of 2023dated 28th March. 2023, it is hereby clarified that a person who has failed to intimate the Aadhaar number in accordance with section 139AAA of the Income-tax Act, 1961 (the Act) read with rule 114AAA shall face the following consequences as a result of his PAN becoming inoperative:
(i) refund of any amount of tax or part thereof. due under the provisions of the Act shall not be made to him;
(ii) interest shall not be payable to hint on such refund for the period. beginning with the date specified under sub-rule (4) of site114AAA and ending with the date on which it becomes operative:
(iii) where tax is deductible under Chapter XVII-B in case of such person. such tax shall be deducted at higher rate, in accordance with the provisions of section 206AA:
(iv) where tax is collectable at source under Chapter XVII-BB incase of such person. such tax shall be collected at higher rate, in accordance with the provisions of section 206CC.”
2. As per sub-rule (4) of rule 114AAA of the Income-tax Rules.1962, the above consequences shall have effect from the date specified by the Board. The Board vide Circular No. 03 of 2023dated 28n March, 2023 had specified that the consequences shall take effect from 1st July, 2023 and continue till the PAN becomes operative.
