Case law › Notifications › 2020 › Notification No. 11/2020 [F.No. 370149/166/2019-TPL] / GSR 112(E)

Notification 13 February 2020

Notification No. 11/2020 [F.No. 370149/166/2019-TPL] / GSR 112(E)

Ministry of Finance

What this is

Notification No. 11/2020 [F.No. 370149/166/2019-TPL] / GSR 112(E) was published on 13 February 2020. Its subject is Ministry of Finance.

This amends the Income-tax Rules. What it changes is the Rules, not the Act — and a rule can never take away what the section gives.

What it does

The Income-tax (5th Amendment) Rules, 2020, made under the proviso to sub-section (2) of section 139AA read with section 295, insert new rule 114AAA in the Income-tax Rules, 1962 after rule 114AA, prescribing the manner of making a permanent account number inoperative. Sub-rule (1) provides that where a person allotted a permanent account number as on 1 July 2017 who is required to intimate his Aadhaar number under section 139AA(2) has failed to do so on or before 31 March 2020, his permanent account number becomes inoperative immediately after that date for the purposes of furnishing, intimating or quoting under the Act. Sub-rule (2) provides that such a person is deemed not to have furnished, intimated or quoted the permanent account number and is liable to all consequences under the Act for that failure. Sub-rule (3) provides that on intimation of the Aadhaar number after 31 March 2020 the permanent account number becomes operative from the date of intimation and sub-rule (2) ceases to apply from that date. Sub-rule (4) requires the Principal Director General or Director General of Income-tax (Systems) to specify the formats, standards and procedure for verifying the operational status of a permanent account number.

Who it reaches

Holders of a permanent account number allotted as on 1 July 2017 who have not linked Aadhaar
Deductors and reporting entities who must verify the operational status of a quoted permanent account number
Banks and other persons collecting a permanent account number for specified transactions
The Systems Directorate, which prescribes the verification procedure

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.

Under the 1961 Act	Now
s.139AA	s.262
s.295	s.533

The instrument, as the Board published it

The department publishes this one only as a PDF, so the words below were read out of that PDF by machine. That reading can carry its own mistakes — a misread number, a broken line. Check the signed document before you rely on a figure in it.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 13th February, 2020
G.S.R. 112(E).—In exercise of the powers conferred by proviso to sub-section (2) of 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 Income-tax Rules, 1962, namely:-

1. Short title and commencement. - (1) These rules may be called the Income-tax (5th Amendment) Rules, 2020.
(2) They shall come into force from the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962, after rule 114AA, the following rule shall be inserted, 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, 2020, the permanent account number of such person shall become inoperative immediately after the said date for the purposes of furnishing, intimating or quoting under the Act.

(2) Where a person, whose permanent account number has become inoperative under sub-rule (1), is required to furnish, intimate or quote his permanent account number under the Act, it shall be deemed that he has not furnished, intimated or quoted the permanent account number, as the case may be, in accordance with the provisions of the Act, and he shall be liable for all the consequences under the Act for not furnishing, intimating or quoting the permanent account number.

(3) 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, 2020, his permanent account number shall become operative from the date of intimation of Aadhaar number for the purposes of furnishing, intimating or quoting under the Act and provisions of sub-rule (2) shall not be applicable from such date of intimation.

(4) 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.11/2020/F.No. 370149/166/2019-TPL]
ANKUR GOYAL, Under Secy.

Note : The principal rules were published in the Gazetted of India, Extraordinary, Part-II, Section-3, Sub-section (ii) vide number S.O. 969 (E), dated the 26th March, 1962 and were last amended vide notification number G.S.R. 110(E), dated the 12th February, 2020.

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.

What it changes

The rule numbers are the 1962 Rules’ own, as the notification names them. The right-hand column is the department’s own mapping into the Income-tax Rules, 2026, which renumbered nearly everything.

Rule of the 1962 Rules	Now, in the 2026 Rules
Rule 114AAA	rule 162

From when

The date of publication in the Official Gazette (13 February 2020).

What to watch

The rules come into force from the date of their publication in the Official Gazette, but the operative cut-off is 31 March 2020.
The consequence is not cancellation but inoperativeness: the number is treated as not furnished, with all the consequences the Act attaches to that.
Inoperativeness is reversible; on later intimation of the Aadhaar number the permanent account number becomes operative again from the date of intimation, prospectively.
The verification of operational status runs through formats and procedures to be specified by the Systems Directorate under sub-rule (4).

Where you meet it

When quoting a permanent account number in a return or a specified transaction, and in a deductor's verification of whether the number quoted is operative.

What it names

Rules it names. Rule 114AA of the Income-tax Rules, 1962. The 1962 Rules were replaced by the Income-tax Rules, 2026, which renumbered nearly everything: a rule number quoted here almost never means the same rule today.

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

Notification No. 25/2025 [F. No. 370142/1/2025-TPL] / GSR 217(E) — Ministry of Finance 3 April 2025
Notification No. 26/2025 [F. No. 370142/1/2025-TPL] / SO 1605(E) — 2 the Gazette of INDIA : Extraordinary [Part Ii—sec. 3(ii)] 3 April 2025
Circular No. 3/2023 — Consequences of PAN becoming inoperative as per the newly substituted rule 114AAA 28 March 2023
Circular No. 7/2022 — Clarification with respect to relaxation of provisions of rule 114AAA of income tax rules 1962 prescribing the manner of 30 March 2022
Notification No. 113/2021 [F. No. 370142/35/2020-TPL-Part 1] / SO 3814(E) — Ministry of Finance 17 September 2021
Notification No. 20/2021 [F. No. 370142/35/2020-TPL] / SO 1432(E) — Ministry of Finance 31 March 2021

← Notification No. 12/2020 [ F.No.370142/29/2019-TPL] / GSR 124(E) · Notification No. 10/2020 [F. No. 370142/34/2019-TPL] / GSR 110(E) →

What a notification is. A notification is made under a power the Act itself gives, and within that power it is law — unlike a circular, which only binds the department. Its reach is the reach of the enabling provision and no wider, and the date it carries decides from when it works.

Source: the Income Tax Department’s own published text — its page for this instrument.