PAN stands for Permanent Account Number that enrols your name in the tax office. It’s an ultimate security card for every Indian citizen.
But many people are misusing it. Corruption in India finds it’s own way. According to a news report, “Recently, a number of cases have come to the notice where the PAN of the assessees used at Photo ID was publically available at places like railway stations (in charts) are found to be misused and quoted in the TDS/TCS returns. eg. The Finance Act, 2012 through an amendment in section 206C made it mandatory to collect tax at the specified rate in case of any person selling jewellery or bullion,” the renowned chartered accountants said.
Above all our prime minister has promised to make an uncorrupted India. So, the government are taking hard steps to suppress corruption. ICAI has said, “the seller, in this case, has to file TCS returns quarterly where currently PAN of all the buyers need to be reported.
In order to hide/accommodate the information w.r.t the high net worth individuals not quoting their PAN at the time of purchase in order to evade tax, fake PANs are being mentioned in the TCS returns. Such sellers are able to get the PAN numbers by various means as mentioned above.” “In such cases, the assessee whose PAN has been quoted faces severe hardship as he may not have that much income to substantiate the expenditure quoted against his PAN.
It will also be difficult for him to prove his innocence. Thus, there is a need to curb such practice and new age PAN cards are issued in order to prove the identity of the person carrying the transaction. fake PANs are being mentioned,” it said.
The ICAI department has strictly prohibited photocopy of the card. PAN records every transaction of a citizen who is able to earn money. But as we know the rate of Indian taxes is too high so there is a tendency among people to do tax evasion.
To stop misuse of PAN card to carry out benami transactions, ICAI recommends that they will enable chip that will require swiping in the machines specifically designed for it. This is just another way to record if transactions are made by the same person or not.
However, it’s not the first time that government has taken such steps but earlier, the Government had issued newly designed PAN (Permanent Account Number) cards. They have added security features to make them tamper-proof and with contents written in both Hindi and English, a senior Income-Tax Department official informed it on Friday. The new-look PAN cards were printed by NSDL and UTIITSL (UTI Infrastructure Technology and Services Ltd).
Source by:- sinhatechworldShare: