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Stop Quoting PAN Details For Identity Proof .... Please read
CIRCULATED FOR BENEFIT OF THE GENERAL PUBLIC
Advice your tax payers not to quote PAN for Tatkal bookings…
Indian Railways (IR) are displaying Tax Payers confidential information
(PAN) as identity proof for Tatkal bookings
IR has started collecting PAN and other specified identity information in
support of Tatkal bookings as per recent direction and displaying the PAN
alongwith name, sex and age of reserved passengers on the reservation
charts pasted on to the railway compartments.
This is a boon for benami transactions. Finance Act 2012 has made it
mandatory for certain traders like jewellery dealers to collect tax (TCS)
from customers on purchase of jewellery worth Rs.2 lakhs and above. While
complying with TCS rules for collection, payment and uploading of TCS
information (efiling of TDS returns) jewellery dealers have to furnish PAN
of customers.
For certain customers it is not convenient to provide PAN as they may have
constraints in explaining source (black money earned through corruption,
undeclared incomes etc.,) and in such cases to accommodate high net worth
customers, the traders have a easy source of benami PAN numbers and all
particulars like name, sex and age from reserved railway compartments.
While someone was recently traveling from Bangalore to Hyderabad they
noticed certain persons seriously copying PAN particulars alongwith name,
age and sex pasted on to the reserved compartments… and when they were
confronted with the help of railway police… they admitted that they are
paid Rs.10 per PAN particulars by jewellery traders.
These persons are copying selected PAN information of senior citizens,
women etc., only from sleeper class with the intention that passengers in
sleeper class are not serious tax payers and generally salaried class.
Impact on PAN holders who is a tax payer:
> This wrong usage of a PAN number… is known only to the regular tax
payers, who regularly check their tax credit on form 26 AS provided by the
Income Tax department on their website. This form 26 AS is updated only on
filing of e-TDS returns by the traders. There is almost 6-12 months time
delay for the PAN holder to know that a transaction of above nature has
taken place on his name and that too only if he goes through form 26 AS.
> On noticing the tax credit of above nature while reconciling form 26 AS
for tax credits for filing the return during subsequent financial year i.e.
July / September… the tax payer has an option to exclude the same and go
ahead in filing the return.
> In that case the department will first initiate action from the tax
payer’s side asking him to explain the sources of money for the above
transaction done in his name… and also to prove that he has not carried on
the above transaction. The onus lies on the genuine tax payer for the fault
committed by the traders. This dispute may even take more than 2 years to
be settled.
*In conclusion… the only way to protect yourself from these fraudulent
transactions, is to avoid quoting PAN details for identity proof.*
CIRCULATED FOR BENEFIT OF THE GENERAL PUBLIC
Advice your tax payers not to quote PAN for Tatkal bookings…
Indian Railways (IR) are displaying Tax Payers confidential information
(PAN) as identity proof for Tatkal bookings
IR has started collecting PAN and other specified identity information in
support of Tatkal bookings as per recent direction and displaying the PAN
alongwith name, sex and age of reserved passengers on the reservation
charts pasted on to the railway compartments.
This is a boon for benami transactions. Finance Act 2012 has made it
mandatory for certain traders like jewellery dealers to collect tax (TCS)
from customers on purchase of jewellery worth Rs.2 lakhs and above. While
complying with TCS rules for collection, payment and uploading of TCS
information (efiling of TDS returns) jewellery dealers have to furnish PAN
of customers.
For certain customers it is not convenient to provide PAN as they may have
constraints in explaining source (black money earned through corruption,
undeclared incomes etc.,) and in such cases to accommodate high net worth
customers, the traders have a easy source of benami PAN numbers and all
particulars like name, sex and age from reserved railway compartments.
While someone was recently traveling from Bangalore to Hyderabad they
noticed certain persons seriously copying PAN particulars alongwith name,
age and sex pasted on to the reserved compartments… and when they were
confronted with the help of railway police… they admitted that they are
paid Rs.10 per PAN particulars by jewellery traders.
These persons are copying selected PAN information of senior citizens,
women etc., only from sleeper class with the intention that passengers in
sleeper class are not serious tax payers and generally salaried class.
Impact on PAN holders who is a tax payer:
> This wrong usage of a PAN number… is known only to the regular tax
payers, who regularly check their tax credit on form 26 AS provided by the
Income Tax department on their website. This form 26 AS is updated only on
filing of e-TDS returns by the traders. There is almost 6-12 months time
delay for the PAN holder to know that a transaction of above nature has
taken place on his name and that too only if he goes through form 26 AS.
> On noticing the tax credit of above nature while reconciling form 26 AS
for tax credits for filing the return during subsequent financial year i.e.
July / September… the tax payer has an option to exclude the same and go
ahead in filing the return.
> In that case the department will first initiate action from the tax
payer’s side asking him to explain the sources of money for the above
transaction done in his name… and also to prove that he has not carried on
the above transaction. The onus lies on the genuine tax payer for the fault
committed by the traders. This dispute may even take more than 2 years to
be settled.
*In conclusion… the only way to protect yourself from these fraudulent
transactions, is to avoid quoting PAN details for identity proof.*
