Often people take PAN or Permanent Account Number lightly. Doing so can prove to be costly. The rules related to PAN are very strict. This is because PAN is the number through which the Income Tax Department keeps an eye on all your financial transactions....People take PAN or Permanent Account Number lightly. Doing so can prove to be costly. The rules related to PAN are very strict. This is because PAN is the number through which the Income Tax Department keeps track of all your financial transactions. It also plays a major role in assessing the tax liability of an individual taxpayer or company. Since the implementation of PAN, cases of tax evasion have come down. Let us now tell you why it is important to keep your PAN card safe.
First of all, it is important to know that if your PAN is stolen or falls into someone else's hands, it can be misused. Every day we hear such cases where fraudsters use stolen PAN. Many times stolen PAN is used for illegal transactions. After investigation, it is found that the income of the PAN holder is so low that he cannot make big transactions. Fraudsters mostly use the PAN of people whose income is very low. So avoid keeping PAN card in your wallet. If your PAN card is lost or stolen, then complain about it to the police. This will save you from getting into trouble in case of misuse of PAN.
It is important to know that a person should have only one PAN. If a person has more than one PAN, then the Income Tax Department can impose a penalty on him. First of all, the department will cancel a PAN. Then it will charge a penalty. If there is wrong information in the PAN, the bank can freeze your account. So if any wrong information has been entered in your PAN inadvertently, then you should correct it. If you have two PAN cards by mistake, then you should return one to the Income Tax Department.
You also need to be careful while entering the PAN number in financial or any other type of transaction. Income Tax Department can impose a fine for giving wrong PAN. This fine can be up to Rs 10,000. Especially in income tax return filing, you have to take special care of your PAN number. It would be better to check the PAN number once before submitting the ITR form.
