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CS Executive · Tax Laws and Practice · Procedural Compliance under Income Tax

Under the Income-tax Act, 2025, Ravi, who is eligible to obtain an Aadhaar number, already holds a PAN but has not intimated his Aadhaar number to the prescribed income-tax authority. What is the consequence provided for such failure?

His PAN shall be made inoperative in the prescribed manner. A PAN holder eligible for Aadhaar must intimate the Aadhaar number to the prescribed authority, and failure to do so makes the PAN inoperative, not cancelled.

  1. AHe must pay a fixed daily penalty under the same section
  2. BHis PAN will be cancelled and he must reapply after one year
  3. CHis PAN shall be made inoperative in the prescribed mannerCorrect
  4. DHis Aadhaar will be deactivated by the Assessing Officer

Explanation

Section 262(6) requires a PAN holder who is eligible for Aadhaar to intimate it. If he fails to do so, the PAN is made inoperative in the prescribed manner. The section does not say the PAN is cancelled, and it does not prescribe a daily penalty.

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