Income Tax Department has found that proof of address and proof of identity documents submitted in respect of some of the Income Tax PAN cards issued recently were all fake. In order to control this menace, Income Tax Department has planned to tighten up the pre-verification process for issue of new PAN Cards. It is also proposed to revise the type of documents accepted so far as address proof and identity proof.
It is reported that Economic Offences Wing found some foreign nationals, particularly from Afghanistan, were using fake Income Tax PAN cards as proof of identity. In most of these cases, a fake certificate of identity and address signed by a Member of Parliament (MP) was issued. According to officials, in most cases of fraud, people furnished fake bank accounts, ration cards or certificates issued by gazette officers.
Documents accepted as identity proof and address proof so far under Rule 114 of theIncome Tax Rules are Stock market account statement, bank account , ration card, passport, voter identity card, driving licence, property tax assessment order and a certificate signed by an MP or MLA or a gazetted officer . Since there is no prescribed format for the certificate issued by MP, MLA and Gazetted Officers chances of getting new PAN based on such fake certificates are more . So IT department has proposed to issue format for issue of such certificates by MP, MLA and Gazetted officers.
Ration cards and rent receipts are also to be excluded from the list of accepted documents. Aadhaar number, gas connection documents, and a certificate issued by the employer in a prescribed format would be accepted as identity/address proof
A notification may issued by Income Tax Department shortly giving effect to all those proposed changes to prevent issue of Income Tax PAN to unscrupulous persons
Source: Business Standard