What can someone do by using PAN card? To be precise, is there anything one can do using my PAN card? Do I need to be careful with my PAN card?
Yes, your Permanent Account Number (PAN) serves as a vital information in India, that:
- Uniquely identifies for financial transactions and tax purposes
- Connects various financial activities directly to you.
Simply knowing the standard PAN card uses does not suffice. It is essential to understand how to handle this document with care to prevent potential misuse, fraud, or financial complications. Let us learn more about using PAN card effectively and securely.
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Best Practices: Using Your PAN Card Wisely
Who can see your PAN? The answer is, entities that are legally authorised to request them.
These can include:
- Banks,
- Financial institutions (mutual funds or insurance companies),
- Employers,
- Government departments for specific, mandated purposes.
PAN has the highest and most enhanced security features that can allow only authorised entities to authenticate and validate the PAN card details.
However, sharing your PAN for casual identification or with unknown parties can significantly increase the risk of its misuse.
Fraudsters often pose as legitimate entities to trick individuals into revealing their details.
Here are things you can consider for PAN card uses:
- When providing a physical copy of your PAN card, adopt the practice of submitting a self-attested photocopy instead of the original document by marking it as "Self Attested.”
- You should treat your PAN card with the same care as you would a debit or credit card. You should store it in a safe and secure place, perhaps with other important documents, to prevent loss or theft.
- Losing your PAN card necessitates immediate action to prevent its misuse.
- It is also important to understand digital security when using PAN card details online.
- You can also keep a record of where and when you have shared your PAN card details.
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Precautions: Protecting Your PAN from Misuse
You can take the following precautions to avoid PAN card misuse:
- You must never respond to unsolicited emails, SMS messages, or phone calls that claim to be from the income tax department, banks, or other financial institutions demanding your PAN immediately.
- You can properly dispose of documents containing your PAN information to prevent them from falling into the wrong hands. Your PAN details can be misused for various loan and other frauds that might negatively impact your credit score. Therefore, simply discarding them in the trash can pose a significant security risk. To avoid the misuse of your PAN details, you can tear into small pieces or shred any physical copies of your PAN card or papers that display your PAN once they are no longer needed.
- You should limit storing digital copies of your PAN card , instead, only use Government of India (GoI) apps like DigiLockeron.
- Acting swiftly if your PAN card is lost or stolen can minimise the window for potential misuse. You need to immediately file a police complaint reporting the loss or theft. Subsequently, you can also apply for a duplicate or reprint of your PAN card through the official portals of the tax authorities.
- You should avoid sharing your PAN details on social media, online forums, or any website accessible to the public. Once shared publicly, you lose control over how that information is used.
Understanding the Consequences of PAN Misuse
Ignoring best practices when using PAN card can lead to serious repercussions. The potential negative consequences of PAN card misuse are as follows:
- Identity theft and financial fraud: Your identity could be stolen, leading to fraudulent transactions carried out in your name.
- Unauthorised transactions: Funds could be transferred, loans taken out, or investments made without your knowledge or consent, all linked to your PAN.
- Potential legal and financial complications: You could face legal issues or be held liable for transactions you did not conduct but are linked to your PAN.
- Misuse for illegal activities: In extreme cases, a misused PAN can be linked to money laundering or other illicit financial operations.
PAN Card Dos and Don'ts
Check the table below for a concise list of dos and don'ts while using PAN card:
Conclusion
PAN card safety tips or PAN card precautions are utmost to your secure financial future. Responsible PAN card usage can significantly reduce the risk of your PAN being misused. Keeping your PAN safe by being vigilant in all transactions and interactions involving your PAN card is a vital step in protecting your financial well-being and security. Thus, using PAN card is not just about convenience, but about safeguarding your future.
