This Could Happen To You: PAN Card Misuse And A Rs 36 Crore Tax Notice

Picture this: a person from Gujarat, Jiteshkumar Makwana, an office assistant with just Rs 12 in his bank account—enough for maybe a small snack. One day, he received a letter from the Income Tax Department. The letter asked him to explain Rs 36 crore in transactions. He’s baffled. Turns out, his PAN card got tangled up in some shady business he didn’t even know about. It’s a hassle, no doubt, but it’s also a nudge for the rest of us to be vigilant. 

Says Suresh Surana, a Mumbai-based chartered accountant: “Your PAN is tied to everything financial about you. If someone grabs it and misuses it, you might end up with a tax notice—or at least a headache.” In Makwana’s case, it was linked to a company called JK Enterprise, racking up crores in turnover and tax credits. With his near-empty bank account, it’s pretty clear he’s not the one behind it.

So how does this even happen? Banks and financial experts report big transactions using your PAN to the tax department—it’s routine stuff. If something looks off, like a huge amount tied to someone who’s barely scraping by, they’ll send a notice to check it out. The catch is, if your PAN’s been borrowed by someone sneaky, you’re the one who has to sort it out.

Surana’s got some easy tips to avoid this mess. Check your Form 26AS, AIS, and TIS now and then—they’re like a summary of what the tax experts see about you. If something’s off, you’ll spot it there. Be picky about sharing your PAN or Aadhaar—only hand it over when you really need to. If you notice anything suspicious, let the tax portal know right away through their grievance section, and if it’s bad, maybe even tell the cybercrime officials online.

A few simple habits help too: turn on alerts for your bank account so you’re in the loop on every transaction, and close any old accounts you don’t use. If you still receive a notice, double-check that it’s real on the tax portal, look over your records, and send a clear reply with anything that backs you up. Keep copies of it all, just in case. If it feels tricky, a tax consultant can lend a hand.

Makwana’s situation shows how a little slip with your PAN can turn into a big annoyance. The tax system’s just doing its job, keeping tabs on things, but it’s up to us to make sure our details don’t end up in the wrong story. Stay on top of it, and you’ll save yourself a lot of trouble.