Section 162 — When PAN becomes inoperative under section 262(6)

(1) If a person who had been allotted a Permanent Account Number (PAN) and was required to intimate his Aadhaar number under section 262(6), butfailed to do so, then his Permanent Account Number being inoperative, he shall be liable for payment of fees in accordance with rule 158.
(2) Where the person referred to in sub-rule (1) has intimated his Aadhaar number under section 262(6), after payment of fees in accordance with rule 158, hisPermanent Account Number shall become operative within thirty days from the date of intimation of Aadhaar number.
(3) A person, whose Permanent Account Number has become inoperative under sub-rule (1), shall be liable for the following consequences for the periodcommencing from the date of commencement of this rule till the date it becomes operative: —
(a) refund of any amount of tax or part thereof, due under the provisions of the Act shall not be made;
(b) interest shall not be payable on such refund for the period, beginning with the date of commencement of this rule and ending with the date on which itbecomes operative;(c) where tax is deductible or collectible at source under Chapter XIX-B in case of such person, such tax shall be deducted or collected, as the case maybe, at higher rate, in accordance with provisions of section 397(2);(4) The Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) shall specify the formats and standards along withthe procedure for verifying the operational status of Permanent Account Number under sub-rules (1) and (2).