What if one day you suddenly get income tax notice. Surely your breath will also be tight. Although there can be many reasons behind issuing notice by the Income Tax Department, but nowadays many frauds related to it are also coming out where people’s PAN cards are being misused, after which the notice has been issued by the department.
Misuse of an elderly person’s pan
Recently, the PAN card of a housewife and an elderly person from Mumbai was misused, after which he had to register a case in the Income Tax Appellate Tribunal (ITAT), which revealed that the person had paid Rs 1.3 crore in 2010-11. Sold the property and showed it in his income. While the person did nothing like this.
Use of PAN in property registration
Not only this, if an uneducated and cancer patient did not respond to the income tax notice, she was heard before the ITAT. In the hearing, his lawyer said that his PAN has been misused in property registration. It was also said in the hearing that the Income Tax Officer did not conduct an independent investigation like seeking details from the property registrar and the buyer.
Many incidents from different parts
This was not the only incident. There have been cases of misuse of PAN across India so far – whether it was Usha Soni of Betul in Madhya Pradesh, who was issued an income tax notice of Rs 7.5 crore after a decade of her death, or a small shopkeeper Nand Lal in Rajasthan. Who lodged a complaint with the police after receiving an income tax notice of Rs 12.2 crore. The deceased, senior citizens, farmers and students are easy goals for PAN fraud.
What did the Central Board of Direct Taxes say?
Misuse of PAN by fraudsters can create many problems for you. The Central Board of Direct Taxes also says that everyone should avoid sharing their PAN card details in places where it is not mandatory according to government guidelines. You should also avoid entering PAN details in a public domain. Currently the PAN database is more than 70 crores. The process of linking to Aadhaar to prevent misuse of PAN was also initiated. However, if you feel that your PAN card is being misused, you can file a complaint with the police.
When does income tax notice come?
For information, let us know that under Section 142 (1) of the Income Tax, this notice is issued to those who have not filed details related to any bank interest received on long -term capital gains/losses, any bank interest received on the sale of tax returns or any property.
