PAN Card Fraud: Consequences and Ways to Prevent It

by Radhika Chawla Marketer

A PAN Card is an essential document mandated by the Income Tax Department of India. It is required to carry out financial transactions such as opening an account, trading, filing IT returns, investments in the stock market, and so on. So, having a PAN Card or a Permanent Account Number is a necessity for most citizens in India.

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As per reports, in 2017, the central government of India had deactivated around 11.44 lakh PAN cards. These PAN Cards included those that allotted to non-existent entities or individuals. The rules dictate that individuals and entities should apply for PAN Card and none can carry more than one PAN card, this move by the government indicates that PAN card frauds in India are a problem.

One such case is of Ravi Gupta, 29, from the Bhind district of Madhya Pradesh. He recently received a notice from the Income Tax Department to explain his earnings of Rs 134 Crore made from a business account in Mumbai.

As a person earning a mere income of Rs. 84,000 a year, which is non-taxable, Mr. Gupta could not believe this news. According to the I-T notice transactions of Rs 134 crore were made in Mumbai in 2011–12. At that time, Rajiv was only 21 years of age and had never visited Mumbai or Gujarat. However, his PAN card was used to open this account.

But it is not just Gupta that has been a victim of these fraudsters pan card users. In recent years, PAN card frauds have seen a spike. While several guidelines have been shared by the government to warn and aware citizens, PAN card frauds continue to prevail.

Here are some tips to protect yourself from misuse of your PAN card:

Do not give your PAN card to any unknown individual.

In cases that require PAN Card always mention the reason for sharing your documents on xerox.

Avoid sharing your PAN card details online unless you trust the website.

In banks, you require to share your PAN details only if the deposit or transaction is more than Rs. 50,000/-

Avoid using the PAN card as identity proof while booking railway or airline tickets.

In case you do not have a PAN Card, you can apply for one here: alankit pan. If you have lost your PAN card or want to rectify any misspelled name or date of birth, you can just Dial-A-Pan for quick resolution of your queries.

Please note that those who commit fraud by using someone else’s PAN card and those who knowingly share wrong documentation while applying for a PAN card can be prosecuted.

Consequences of wrongful declaration

Sharing false information while applying for an individual or entity PAN card may have consequences.

From imprisonment of three months to two years along with a fine, can be imposed on the pan card fraudster. If the PAN card fraud is more than Rs 25 Lakhs, the imprisonment can be from six months to seven years with a hefty fine for false declaration, documentation, or misuse of the PAN card.

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About Radhika Chawla Innovator   Marketer

29 connections, 0 recommendations, 79 honor points.
Joined APSense since, November 30th, 2020, From Haryana, India.

Created on Feb 11th 2021 05:50. Viewed 279 times.


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