Rising PAN Duplication Cases: Why Someone Else’s Loan Might Be Your Problem
With PAN fraud cases rising rapidly, you could find yourself in a situation you never signed up for. So here’s why it’s happening and how you can protect yourself
pan duplication
pan duplication
“Prince Suman, an egg seller from Damoh, Madhya Pradesh, earns less than Rs. 1 lakh in a year by selling eggs on the streets. But in March 2025, he was shocked to receive a GST notice asking him to pay Rs. 6 crore.”
In recent times, stories like this are no longer isolated cases as news of ordinary citizens like lock-makers, students, homemakers and even farmers receiving tax or GST notices worth crores for transactions they never made are becoming alarmingly common.
This growing rate of PAN card fraud cases raises serious concerns about data integrity and identity security. While redressal is being provided to individual victims there is a need for stronger systems to prevent such frauds.
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Why PAN Duplication Is a Serious Problem
PAN card is a unique 10-digit alphanumeric identifier issued by the Income Tax Department and is required for all your major financial activities like opening a bank account, filing tax returns, and making any large transactions.
When someone fraudulently uses your PAN card they can open fake accounts in your name, apply for loans, or conduct illegal transactions. This will subsequently end up with you receiving tax or GST notice for a transaction that you never made.
The Everyday Mistakes That Make PAN Fraud So Easy
You might think these PAN frauds happen only through a big scam or when your PAN card gets stolen but no, it can happen through small things you don’t even realise. You might have uploaded your PAN details on random websites without properly checking their credibility.
Or you might have handed over a photocopy for a hotel check-in, SIM card, or loan application without verifying who’s receiving it and even if you’re careful sometimes scammers can get their hands on this data from the source itself.
Even responding to fake email, SMS, or WhatsApp messages that might look official or calling a customer care number you found online can get you in trouble.
How to Resolve PAN Duplication: Step-by-Step Guide
If you suspect your PAN has been misused or receive any such notice then don’t panic but don’t delay in taking actions either. Follow the steps below.
A. Identify the Issue
To prevent or detect such fraud at the earliest stage make sure to regularly monitor your credit report, Form 26AS, and CIBIL score for any unauthorized loans or transactions. If you receive an Income Tax notice for transactions you did not make or detect loans you never applied for then it's a clear case of PAN misuse and the next immediate step is to inform the authorities.
B. File a Police FIR Immediately
If you suspect or have evidence of PAN misuse, file an FIR (First Information Report) at your local police station or online through the National Cybercrime Reporting Portal
C. Report to the Income Tax Department (Choose ONE of these portals)
1) Aayakar Sampark Kendra (ASK) PAN Grievance Portal
- Use for any PAN-related grievance, including misuse, regardless of whether your PAN was issued by National Securities Depository Limited (NSDL) or UTI Infrastructure Technology And Services Limited (UTIITSL)
- Visit: https://incometax.intelenetglobal.com/pan/pan.asp
- Fill in your details, describe your complaint, and submit.
2) TIN NSDL Portal
- Use if your PAN was issued or updated via NSDL
- Visit: https://www.tin-nsdl.com/
- Go to “Customer Care” → “Complaints/Queries” → Fill in your details and submit.
3) Income Tax E-filing Portal
- Use if you are already registered or received a notice from the tax department through this portal.
- Visit: https://www.incometax.gov.in/iec/foportal/
- Log in to the Income Tax e-filing portal → go to the "Grievances" or "Helpdesk" section → select "Submit Grievance" → choose the relevant category → describe your issue and upload documents → submit your grievance.
D. Notify Your Bank and Financial Institutions
- If a bank or financial institution is involved then immediately notify them and provide a copy of the FIR.
- If unresolved in 30 days then you can report the same to the RBI Ombudsman through the CMS portal.
Visit: https://cms.rbi.org.in
What Inaction Could Cost You?
If you don't take any action then you could face a penalty of ₹10,000 for holding multiple PANs under Section 272B of the Income Tax Act. In addition to this you may become liable for loans or transactions made by the scammer. Which can harm your credit score making it harder for you to get loans or credit cards in the future.
Strengthening the Shield: The Role CBDT Can Play
You can do your part but with more and more PAN fraud cases rising, there is a need for more structural reform to better prevent and protect the citizens.
Things CBDT and the tax department could do to address this growing number of cases:
Create a Dedicated PAN Misuse Reporting Portal/Tab
Right now, there is no clear one place for victims to report PAN misuse. CBDT could establish a dedicated online grievance tab in the portal specifically for PAN misuse or duplication complaints.
Real-Time Alerts and Monitoring
Similar to how banks send alerts for transactions whenever a PAN is used for any high risk transactions a SMS or email alert should be sent to the PAN holder. This can help the users prevent misuse before the damage is done.
Coordination With Other Agencies
PAN related fraud often involves banks, loan apps, and even GST registrations. CBDT should collaborate with RBI, UIDAI, police departments, and credit bureaus to flag suspicious activity quickly and stop it from spreading across systems.
Public Awareness and Education
Risk comes from not knowing what you’re doing. Many people don’t even realise their PAN is being misused until they get a tax notice. Awareness campaigns could be initiated through banks, social media, and government platforms. Through which information on how to protect PAN, what red flags to look for and where to report problems are made aware.
So, stay cautious about where you share your PAN details and encourage others to do the same. Taking quick action is the best way to protect yourself and help authorities resolve this problem.
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