As we all know, indians need a variety of documents for both government and non-government work, including aadhar cards, PAN cards, ration cards, and voter IDs. In this case, a PAN card is required for several banking operations and transactions; once issued, the PAN number is yours for life and becomes an essential component of your financial identity.
Identity theft, monetary loss, and legal issues can result from improper use of PAN card information. Let's discuss the errors we should avoid making:
PAN card misuse types
Loan fraud: Obtaining a loan in your name is the most typical technique to abuse your PAN card. Fraudsters may quickly apply for loans using online lending applications, which sometimes don't require much verification, provided they have access to your PAN and Aadhaar credentials.
Tax evasion: Your PAN card may potentially be used by scammers to avoid paying taxes. Someone may, for instance, use your PAN to sign a rental agreement and overreport rental income to avoid paying taxes.
How to spot PAN card fraud?
Check your credit score:
A sudden drop in your credit score can be a red flag indicating that a loan has been taken in your name without your knowledge.
Form 26AS:
You can also download Form 26AS from the Income Tax Department website. This form will show you all the transactions related to your PAN card, including any loans or income reported in your name.
Report to Authorities
Report any suspected fraudulent activity involving your PAN card right away to the Income Tax Department.
How to prevent unauthorized use of your PAN card
Use caution when entering your PAN card information:
Don't provide your PAN card information unless absolutely required. If you must provide a copy of your PAN, be sure that only people you can trust receive it, and always explain why you are submitting it.
Carefully sign the copies:
Make careful to sign the paper and include the reason for providing your PAN card if someone requests a copy.
Identity theft, monetary loss, and legal issues can result from improper use of PAN card information. Let's discuss the errors we should avoid making:
PAN card misuse types
Loan fraud: Obtaining a loan in your name is the most typical technique to abuse your PAN card. Fraudsters may quickly apply for loans using online lending applications, which sometimes don't require much verification, provided they have access to your PAN and Aadhaar credentials.
Tax evasion: Your PAN card may potentially be used by scammers to avoid paying taxes. Someone may, for instance, use your PAN to sign a rental agreement and overreport rental income to avoid paying taxes.
How to spot PAN card fraud?
Check your credit score:
A sudden drop in your credit score can be a red flag indicating that a loan has been taken in your name without your knowledge.
Form 26AS:
You can also download Form 26AS from the Income Tax Department website. This form will show you all the transactions related to your PAN card, including any loans or income reported in your name.
Report to Authorities
Report any suspected fraudulent activity involving your PAN card right away to the Income Tax Department.
How to prevent unauthorized use of your PAN card
Use caution when entering your PAN card information:
Don't provide your PAN card information unless absolutely required. If you must provide a copy of your PAN, be sure that only people you can trust receive it, and always explain why you are submitting it.
Carefully sign the copies:
Make careful to sign the paper and include the reason for providing your PAN card if someone requests a copy.
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