The misuse of a PAN (Permanent Account Number) card can lead to severe financial and legal repercussions. It is crucial to be aware of how your PAN details might be exploited and take proactive steps to prevent such occurrences. This article provides insights into checking for misuse and highlights examples of PAN card misuse cases.
How to check misuse of PAN card?
Your PAN details can be misused if they fall into the wrong hands. Here are some ways in which your PAN card or PAN details might be exploited:
Monitoring Form 26AS
If someone obtains your PAN details, they can misuse them to quote your PAN for Tax Deducted at Source (TDS) and Tax Collected at Source (TCS). Any such activity will be recorded in your Form 26AS. If you regularly use Form 26AS to file your Income Tax Return, you will detect this misuse easily and can take appropriate action. However, if you do not use Form 26AS, such activity can go unnoticed. The Income Tax Assessing Officer may contact you if they detect any suspicious activity, but by then, the misuse might have already occurred.
Unauthorised registration on income tax website
Someone could misuse your PAN details to register on the Income Tax website and file Income Tax returns in your name. To do this, they need basic details such as your surname and date of birth, which can be obtained from various sources, including social media platforms. There have been cases where individuals fraudulently received substantial tax refunds by using other people's PAN details.
Examples of PAN card misuse cases
Here are some potential consequences if you become a victim of PAN misuse:
Financial liability
You might be held responsible for transactions made using your PAN by an unauthorised party. This could include unreported income or fraudulent claims, leading to financial and legal complications.
Impact on CIBIL Score
If someone uses your PAN to apply for loans and credit cards, it could negatively affect your CIBIL score. Although this is rare, the consequences can be severe, impacting your ability to obtain credit in the future.
Step-by-step guide to filing a PAN card misuse complaint
- Access the tax information network portal: Navigate to the official website of the Tax Information Network.
- Locate the customer care section: Identify the "Customer Care" section, typically located in the upper right corner of the webpage.
- Select the complaints/queries option: Click on the "Complaints/Queries" option from the dropdown menu within the Customer Care section.
- Submit the complaint form: Complete the required fields in the complaint form, provide a detailed description of the misuse incident, enter the captcha code, and submit the form.
How can you avoid PAN card misuse?
To avoid misuse, avoid using your PAN card as an identity proof in unnecessary situations. Ensure that third parties do not note down your PAN details when you submit your card for verification. The most common instances of PAN misuse occur when people lose their PAN card and the information is exploited. Memorising your PAN number and avoiding carrying your PAN card in your wallet at all times can minimise the risk of losing it and subsequent misuse.
By staying vigilant and taking preventive measures, you can protect yourself from the misuse of your PAN card and the potential financial and legal troubles that can arise from such incidents.
