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  • Category: Miscellaneous

    What can an individual do with a fake PAN card?

    Government has asked people to link their PAN cards with Aadhaar cards. It says that the action will weed out fake PAN cards. Government is arguing that there is a huge gap between the number of PAN holders to number of tax payers. Yes, it is true that every PAN holder need not to pay tax as there exists a standard deduction limit below which there is no need to pay tax. Similarly, some people possess PAN cards only for identity proof. But I don't understand what an individual can do with a fake PAN card if he already possesses a genuine PAN card. Is there any possibility of evading tax if an individual possesses multiple PAN cards?
  • #602481
    There have been many cases where people in order to avoid tax queries or income tax raids have used fake cards and created a false impression in the mind of tax sleuths.

    Interestingly some of these were caught by police and intelligence agencies and it was found that the card was in the name of the driver or sometimes a false name with a false date of birth.

    To curb this menace Govt has plan to go in a big way for making the fake PAN card a history.

    It is the IT development which is now forcing people to declare their money as well as transaction as everything is slowly going online mode.

    I have seen some cases in newspapers where by using a fake card, bank accounts were opened and lot of illegal transactions were done.

    In 2013 there was a detailed case story where a fake card was used like that. If someone is interested to know he can read the same at -

    http://m.timesofindia.com/city/mumbai/Rs-1-crore-e-fraud-Fake-PAN-cards-used-to-open-several-bank-accounts/articleshow/18424166.cms

    Knowledge is power.

  • #602486
    I do not believe that this is for eliminating fake PAN cards. Though it may be serving that to some extent as an indirect benefit, I take it that this government wants to make Aadhaar card an all pervasive, omnipotent, omnipresent band omniscient card. It is still not clear nor made public how many fake identities and fake beneficiaries are eliminated in other sectors where Aadhaar has been made compulsory.

    At the same time I can think about certain benefits accruing from this implementation. For example we have to provide PAN number for every financial transaction above a threshold. This is applicable very much for investment in mutual funds, stocks etc. However many people have more than one PAN card. They use different cards for different purposes, thus avoiding tax net and scrutiny. That was because there was no fool proof mechanism to find out if anyone is having more than one PAN card. However as Aadhaar card is based on the biometrics, this can work as a verification mechanism.

    But issue of Aadhaar card is also not a foolproof mechanism and even non-citizen can also get Aadhaar card. The original source as base for getting Aadhaar card is not resting on concrete surface. There are lot of chances and loopholes. Hence what is aimed cannot be achieved and those who are bent upon being smart can still use Aadhaar card for their purposes.

    Moreover, putting all eggs on basket- the basket called Aadhaar card is not prudent. Just with one hack everything can be lost.

    Ironically where it is most needed-as proof of identity in elections, with biometric verification - it is not at all even thought of. That shows the gap and makes us to doubt that there is some gap in sincerity also.

  • #602500
    At many places I could see the hand bills pasted here and there that PAN cards are available for 180 rupees payment and that could be got within 2 days. I must say here that those who want PAN cards, they must approach a CA or other E seva centers governed by government. But getting a PAN card through brokers seems to be a big racket which the central government wants to weed out. Therefore there is nothing wrong to announce that fake cards are in circulation and they would take against the fake PAN card holders. So the technology would catch those who are in wrong foot.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease


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