What happens if someone is using my PAN number for their transactions? Even though if you are not related with the original transaction, if someone is going to quote your PAN for TDS, TCS or for some thing else, it will be recorded in your Form 26 AS at later. Those who use Form 26AS Income Tax Statement for Income Tax return may know very well about its usage. But those who don't know about it at all may not even find out that someone else is misusing their PAN. So if suspicious activity is being performed by that PAN, income tax accessing officer may later call the PAN number person and ask him/her regarding that transaction. You may be totally innocent but still you have to face tax department. See how someone is misusing your PAN smartly!
If someone is able to get your xerox copy of the PAN, then also it may be misused to obtain a loan or credit card or something else in your name. So be careful when you are signing a xerox copy of the form. Some people may not be eligible to get loans due to bad financial records or low CIBIL score or any other reason. Such people may try to benefit from your PAN. Remember these type of activities can only be performed by people who are close to you. So better judge your real friends and fake friends.
Chances are also there some suspicious person may try to register on the Income tax website and try to file income tax return by using your PAN number. In order to register on the site the person should have to know your surname and date of birth correctly. This can be easily traced by your social profile. So be careful sharing your date of birth publicly on the social media. Recently a scam came into light where a person got a refund of four crore rupees from tax department by giving fake PAN numbers of other people.
Don't give PAN number for railway Tatkal booking as proof of ID.
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The Railways display the PAN. name, sex and age of passengers on reservation charts pasted on railway compartments.
This is a boon for benami transactions. It is mandatory for traders like jewellers to collect tax (TCS) from customers on purchase of jewellery worth Rs 5 lakh & bullion worth Rs 2 lakh.
To accommodate high net worth customers, traders have a easy source of benami PAN numbers, name, sex and age from reserved railway compartments. A traveller recently noticed a chap copying PAN particulars along with name, age and sex pasted on reserved compartments, and when confronted with the help of railway police, he admitted that he gets Rs 10 per PAN particulars from jewellers. These persons are copying PAN information of senior citizens, women etc from sleeper class with the intention that passengers in sleeper class are not serious tax payers and generally salaried class..
In that case the department will first initiate action from the tax payer's side asking him to explain the sources of money for the above transaction done in his name and also to prove that he has not carried on the above transaction..
You may quote your driving licence #, Voter ID # etc as your ID Proof but definitely not your PAN.
Beware!!!!.
Yes PAN card can be misused. There are people out their who can use photocopy of your PAN card in various transactions, so you should be very careful before giving your PAN number.
Also for your information bogus PAN card( i.e. PAN card made on some other person's name like a dead person or a person who do not have PAN card) is also prevalent.
Once Ration card was treated like standalone proof by bank but people start misusing it to the extent that even government itself does't consider it as a proof now.
Steps you have to take to avoid the misuse of PAN
My first advice to you is don't give PAN as an identity proof if there is a possibility of giving some other ID as proof. Mention PAN only when it is necessary. Otherwise depend upon voter ID, or driving license.
Even just sharing your PAN number with someone whom you can't trust is also not good. So avoid sharing PAN number also.
Some suspicious persons may try to trace your PAN if they know some basic details about you. Like your surname, date of birth and in some cases your father's name. For instance official income tax website provide a service to Know your PAN for your benefit. But actually this service may also be misused by someone else.
Have some clarity regarding Form 26AS and do visit it at least twice in a year to make sure that everything is fine with your PAN card.
Hope you got some basic view regarding the misuse as well as tips on how to protect PAN.
Yes PAN card can be misused. There are people out their who can use photocopy of your PAN card in various transactions, so you should be very careful before giving your PAN number.
Also for your information bogus PAN card( i.e. PAN card made on some other person's name like a dead person or a person who do not have PAN card) is also prevalent.
Once Ration card was treated like standalone proof by bank but people start misusing it to the extent that even government itself does't consider it as a proof now.
Steps you have to take to avoid the misuse of PAN
My first advice to you is don't give PAN as an identity proof if there is a possibility of giving some other ID as proof. Mention PAN only when it is necessary. Otherwise depend upon voter ID, or driving license.
Even just sharing your PAN number with someone whom you can't trust is also not good. So avoid sharing PAN number also.
Some suspicious persons may try to trace your PAN if they know some basic details about you. Like your surname, date of birth and in some cases your father's name. For instance official income tax website provide a service to Know your PAN for your benefit. But actually this service may also be misused by someone else.
Have some clarity regarding Form 26AS and do visit it at least twice in a year to make sure that everything is fine with your PAN card.
Hope you got some basic view regarding the misuse as well as tips on how to protect PAN.
Update:
ReplyDeleteRailways now displaying only last digits of the PAN card so that PAN misuse can be avoided.
but.. There are people out their who can use photocopy of your PAN card in various transactions, so you should be very careful before giving your PAN number.