PAN card scam: According to a media report, a major scam involving misuse of PAN cards is likely to surface across the country.
According to a Times of India report, several cases of PAN card misuse have been reported from various parts of India. Deceased, senior citizens, farmers, and students have been targeted by fraudsters using their PAN cards in several cases.
Recently, a senior citizen from Mumbai had to approach the Income Tax Appellate Tribunal (ITAT) due to alleged misuse of her PAN.
Her lawyer had claimed that her PAN was misused in property registration.
According to the report, the illiterate woman’s PAN card was misused for the sale of property worth ₹1.3 crore in 2010-11, and the Income Tax Department considered that amount as her income.
The report suggests that the Central Board of Direct Taxes (CBDT) recommends that individuals refrain from sharing their PAN Information/PAN card can be used in locations that are not mandated by government guidelines or in the public domain.
It added, “The PAN database currently stands at over 70 crore. Linking with Aadhaar was brought in primarily to prevent/check misuse of PAN. However, if misuse of PAN is suspected, it is advised that a complaint may be lodged with the police.”
There have been several cases in the past where fraudsters have misused PAN cards to avail of personal loans through fintech apps.
Here are some important steps you can take to prevent PAN card misuse
– All PAN card holders are advised to thoroughly check their Annual Information Statement (AIS), which provides comprehensive data from reporting entities such as banks and property registrars.
– AIS data includes transactions related to bank interest, dividends, and the purchase and sale of movable or immovable assets.
– A PAN card holder can check if his PAN has been misused by generating a credit score.
– You can check if any loan has been taken in your name through CIBIL, Equifax, Experian, or CRIF High Mark.
– Financial reports should be checked through fintech platforms such as Paytm or BankBazaar.