Follow us on Google News
A Delhi telecom employee faces a ₹9.2 crore tax query after fraudsters allegedly used his PAN to operate fake businesses.
How Was His PAN Allegedly Misused?
According to his complaint, unidentified persons allegedly used his Permanent Account Number (PAN) and Know Your Customer (KYC) documents to obtain two GST registrations in Delhi. They reportedly established fictitious businesses, opened bank accounts in his name and filed GST returns showing transactions worth ₹6.5 crore during April and May 2019.
The Income Tax Department subsequently linked transactions worth ₹9.2 crore to his PAN, raising questions about undisclosed income. The employee, whose annual earnings were approximately ₹12.6 lakh, approached the Delhi Police alleging identity theft. The Economic Offences Wing (EOW) registered an FIR on November 3 and began investigating the suspected misuse of his financial identity.
How Did the Employee Discover the Fraud?
The employee first became aware of the alleged fraud on September 9 after receiving an income tax notice issued under Section 133(6) of the Income-tax Act. The notice, dated August 20, had originally been sent to an address in Ghaziabad that he had vacated in 2013.
In his complaint, the employee maintained that he had never applied for GST registration, opened a business bank account, appointed a chartered accountant or issued any tax invoice. He also denied receiving money or commissions from the transactions. His declared income for 2019-20 was ₹12.6 lakh, with ₹1.4 lakh deducted as tax at source.
What Are Police Investigating?
Investigators are examining how the accused allegedly obtained GST registrations and operated bank accounts using the employee’s identity documents. Police will also investigate whether bank officials or individuals involved in processing GST registrations assisted the suspected fraudsters.
The complainant has expressed concern that his identity may have been used for additional transactions, potentially exposing him to further tax demands, penalties or prosecution. The investigation remains underway, with authorities examining the circumstances surrounding the registrations and financial transactions.
How Can PAN Holders Detect Identity Misuse?
PAN holders can check the official GST portal for registrations linked to their PAN. They can also examine their Annual Information Statement (AIS) and Form 26AS through the income tax e-filing portal to identify unfamiliar financial transactions or tax-related entries.
Regularly reviewing credit reports can help detect unauthorised loans or accounts. Individuals should also maintain updated addresses and contact details in their tax records and exercise caution when sharing PAN copies. Marking photocopies with their intended purpose and avoiding unsecured communication channels can reduce the risk of identity misuse.
