Beware of PAN Card Fraud: Protect Yourself from Financial Scams

Business Desk, New Delhi. A significant scam has surfaced concerning House Rent Allowance, posing a threat to unsuspecting individuals. Reports reveal a widespread misuse of PAN cards, with the Income Tax Department uncovering fraudulent activities related to house rent payments.

Shockingly, individuals' PAN cards were exploited for claiming house rent allowances, even though they weren't tenants. The scam, estimated at a staggering Rs 10 lakh or more, has raised alarms nationwide.

Exposing tax evasion tactics

The alarming discovery unfolded when authorities stumbled upon rent receipts totaling around Rs 1 crore linked to a single individual. Upon investigation, it was revealed that the person's PAN card reflected rental income, despite no such transactions. This prompted the Income Tax Department to initiate a probe, uncovering rampant misuse of PAN cards on a large scale. Several similar cases have since come to light, involving employees utilizing identical PAN cards to evade taxes.

Identifying misuse of PAN cards

Tax experts advocate for vigilant measures to identify fraudulent activities linked to PAN cards:

Review Tax Information Status: Regularly monitor your tax information to detect any erroneous claims made under your PAN card. Look for discrepancies, such as claims made by unknown companies.

Check Credit Score: Verify if any loans have been availed under your PAN card by reviewing your credit score. This provides comprehensive insights into existing loans associated with your PAN.

Preventive measures against PAN card fraud

To safeguard against PAN card fraud, follow these preventive measures:

Exercise Caution Online: Refrain from disclosing your PAN number on unfamiliar websites to prevent unauthorized access by hackers.

Monitor Transactions: Stay vigilant for any suspicious transactions and regularly review bank and credit card statements to detect any unauthorized activities.

Secure PAN Card Copies: Be cautious when sharing photocopies of your PAN card and ensure they are provided only to verified organizations.

Regularly Check Income Tax Account: Routinely monitor your income tax account for any discrepancies or fraudulent activities.

Stay vigilant and proactive to protect yourself against PAN card fraud and ensure the security of your financial information.

Responding to fraudulent claims

In the event of discovering fraudulent activities, individuals are advised to take immediate action:

Contact Concerned Parties: Reach out to the individual or company responsible for the false claims under your name. Ensure corrections are made promptly.

Update Tax Records: Verify if the erroneous details have been rectified in your tax department records. If necessary, log in to the Income Tax Portal to refute incorrect tax summaries and inform the authorities about the fraudulent claims.