look news india
New Delhi: A recent case highlights the dangers of PAN misuse in India. A Mumbai homemaker was asked to pay tax on the sale of a property she never sold. The incident highlights the vulnerabilities of the system and underlines the importance of protecting your PAN information.
An elderly woman in Mumbai received a tax notice for selling property worth Rs 1.3 crore in 2010-11, about which she had no knowledge. After this, she had to file a case at the Income Tax Appellate Tribunal (ITAT) level for misusing her PAN.
The illiterate woman, who is a cancer patient, did not respond to the income tax notice. In a recent hearing before the ITAT, her lawyer said that her PAN was misused in property registration.
Income tax officer was negligent
The tribunal said the income tax officer had not conducted any independent enquiry, including seeking details from the property registrar and the buyer. It has ordered the income tax department to seek full details from the registrar and provide the information to the woman.
This incident is not an isolated one, deceased people, senior citizens and small business owners, farmers and women have been targeted by PAN scammers across India.
be careful
Financial experts emphasize on the safety of your PAN details. Share them only when ordered by the government.
The Central Board of Direct Taxes (CBDT) recommends filing a police complaint against unnecessary PANs and in case of suspected misuse. The purpose of linking PAN with Aadhaar was to prevent such frauds.
You need to keep checking your Annual Information Statement (AIS). This document gives details of bank interest, dividends and property transactions reported by various institutions.
Identifying anomalies in the AIS can lead to immediate corrections within the system. If the problem still persists, file a complaint with the police.