Shopkeeper gets ₹141 crore tax notice: How PAN misuse can hurt you

Grocery shop owner in Bulandshahr alleges his PAN was misused to float shell firms in Delhi

A small grocery shop owner in Bulandshahr, Uttar Pradesh, was left stunned after receiving a tax notice over alleged sales worth more than Rs 141 crore. According to a PTI report, the shopkeeper, Sudhir, claimed that his Permanent Account Number (PAN) was misused to set up six shell companies in Delhi.

 

Sudhir, who runs a modest grocery shop from his home in Khurja’s Nayaganj locality, first faced such a notice in 2022. He said he had explained to the Income Tax Department that he had no connection with the companies. However, on July 10 this year, he received another notice claiming sales of Rs 1,41,38,47,126 had been reported in his name.

 

 

Police officials told PTI that a case has been registered at Khurja Police Station and investigations are underway.

 

What is PAN fraud?

 

PAN card fraud happens when someone illegally uses another person’s PAN details to:

 

·  Open bank accounts

 

·  Set up shell firms

 

·  Apply for loans

 

·  Evade taxes

 

Victims usually discover such fraud only when they get unexpected tax notices or calls from recovery agents.

 

Why does this matter?

 

PAN is central to financial transactions in India, and any misuse can have severe consequences. Apart from wrongful tax notices, it can also affect an individual’s credit profile and lead to scrutiny from authorities.

 

How to protect yourself?

 

Experts, quoted by PTI, advise individuals to take following steps to reduce the risk of misuse:

 

·  Check credit reports regularly: Monitoring your credit report can help flag unauthorised loans or accounts opened using your PAN.

 

·  Link PAN with Aadhaar: This makes it harder for fraudsters to misuse your identity.

 

·  Be cautious with documents: Avoid sharing photocopies of your PAN card without masking unnecessary details.

 

The Bulandshahr case is a reminder that identity theft linked to PAN cards is not just a big-city problem. Even small shopkeepers in smaller towns are vulnerable, underscoring the need for regular checks and timely action.

 

(With inputs from PTI)