With the increasing number of PAN frauds in India, the government is working on several ways to prevent PAN tampering and misuse. So far the government has announced its working to make the PAN tamper-proof. In India, each potential taxpayer has to provide the PAN in major financial transactions and income tax return filing.This is a welcoming idea from the government where the intention is to create a user-friendly system that can easily deter fraud.
Do you know that PAN promotes fraud? As per the Alankit fraud report,several PAN fraud cases are reported within different areas. The most common one is when purchasing jewellery. The purchaser can provide the PAN number of any friend or another individual. After a few years, the income tax department approaches the PAN owner and enquires about the purchase. This situation can put him in trouble and he has to spend a lot of money on lawyer and tax consultants to prove that he is innocent and has not handled the transaction. This is a potential fraud and should be protected.
With these frauds are frustrating and put an individual in trouble. The government has to make the PAN card a swipe card with a magnetic strip. Here the government should ensure that no card is authorised any transaction unless the card is swiped at the purchase point.Moreover, at places or in transactions where there is no point of sale terminal the PAN details must be updated to the government’s website within the specified time limit. This should be done in the same way it is currently done in debit and credit cards. Each debit and credit card purchase/swipe is provided to the card holder through an SMS. This service will aware the PAN card holder immediately if someone else uses his PAN details. This will help the card holder to immediately report the incident and email his protest.
Once the complaint is launched, the Pan Card holder should receive acknowledgement that his complaint is registered. This will help the innocent people to stay away from the aggressive moves from the income tax authorities in future. In addition, once the complaint is filed, the email or the incident should be reported to the local police station immediately for the legal action. In this, the police will investigate and verify the fraud and find the person involved in the fraud.
So far, there is no restriction to the APN card use and several cases are reported each year for the PAN fraud. This loophole is promoting frauds where PAN details of users and the card holder is not even aware of the fraud. This has also motivated people to provide false PAN details and escape from taxman’s scrutiny. With the increasing number of PAN frauds, the time has come when the government should take preventive measures to ensure that PAN details are not misused.The government should make a proper system to prevent several frauds and misuses of PAN details in different areas.