Protect Yourself from PAN Card Scams Targeting Vulnerable Groups
Misuse of PAN Card Details Can Lead to Income Tax Notices in Crores
The Times of India reports numerous cases of PAN misuse and scams impacting deceased individuals, senior citizens, farmers, and students across India.
As reported, a senior citizen homemaker in Mumbai was issued a tax notice for a property sale amounting to ₹1.3 crore, allegedly due to the misuse of her PAN details. The matter advanced to the Income-tax Appellate Tribunal (ITAT) level.
Ameet Patel, a tax partner at Manohar Chowdhry & Associates, highlighted to the Times of India the serious concern regarding the Income Tax department's dependence on information from multiple agencies to initiate actions against taxpayers. He stressed the need for the department to reassess its strategies. Patel underscored that taxpayers are now urged to monitor their Annual Information Statement (AIS) regularly to remain vigilant.
"The AIS aggregates information from reporting entities such as banks and property registrars, encompassing bank interest, dividends, and transactions involving securities or immovable properties.
"If discrepancies are detected in the AIS, it is essential to promptly provide feedback via the AIS system and emphasize the error," Patel recommended. "If the matter persists unresolved, it may be necessary to lodge a police complaint."
Responding to a query from the Times of India, the Central Board of Direct Taxes (CBDT) underscored the importance of individuals refraining from disclosing their PAN information or PAN card unless required by government guidelines or publicly mandated. The CBDT highlighted that linking PAN with Aadhaar was primarily implemented to curb misuse. However, in instances where PAN misuse is suspected, individuals are encouraged to file a complaint with the police.
"The PAN database now surpasses 700 million entries.
"While it's crucial to uphold strict confidentiality concerning one's PAN, the reality is that these details are regularly shared for various purposes," explained Ketan Vajani, a chartered accountant, to the Times of India.
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