Beware of quoting PAN for railway tatkal bookings

Apr 11th, 2012
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  1. Dear Members,
  3. Advice your tax payers not to quote PAN for railway tatkal bookings
  5. Indian Railways(IR) Displaying confidential Tax Payers information
  7. *PAN as identity proof for Tatkal bookings*
  9. IR has started collecting PAN and other specified identity information in
  10. support of tatkal bookings as per recent direction and displaying PAN
  11. alongwith name, sex and age of reserved passengers on the reservation
  12. charts pasted on to the railway compartments.
  14. *A boon for benami transactions*
  16. Finance Act 2012 has made it mandatory for certain traders like jewellery
  17. dealers to collect tax (TCS) from customers on purchase of jewellery worth
  18. Rs.2 lakhs and above. While complying with TCS rules for collection,
  19. payment and uploading of TCS information (Efiling of TDS returns) jewellery
  20. dealers have to furnish PAN of customers. For Certain customers it is not
  21. convenient to provide PAN as they may have constraints in explaining source
  22. (black money earned through corruption, undeclared incomes etc.,) and in
  23. such cases to accommodate high networth customers, the traders have a easy
  24. source of benami PAN particulars like name, sex and age from reserved
  25. railway compartments. While I was travelling from Bangalore to Hyderabad i
  26. have noticed certain persons seriously copying PAN particulars alongwith
  27. name, age and sex pasted on to the reserved compartments, on enquiry they
  28. have stated that they are paid Rs.10 per PAN particulars by some traders.
  29. These persons are copying selected PAN information of senior citizens,
  30. women etc., only from sleeper class with the intention that passengers in
  31. sleeper class are not serious tax payers and generally salaried class.
  33. *Impact on traders:*
  35. Traders providing wrong particulars of PAN are penalised with Rs.10000 for
  36. violation of furnishing wrong particulars. Traders can always say that the
  37. have accepted the PAN particulars on the face value as there is no
  38. condition for the traders to collect xerox copy of PAN card at the time of
  39. sale of jewellery. In how may cases till now income tax department has
  40. penalised traders submitting wrong particulars of PAN. Afterall Income Tax
  41. department wants taxes. This is known to the department only in case of
  42. long drawn dispute by the PAN holder. Generally these disputes are settled
  43. after 2 years.
  45. *Impact on PAN holders who is a tax payer:*
  47. This is known only to the regular tax payers, who regularly check their tax
  48. credit on form 26 AS provided by the Income Tax department on their
  49. website. This form 26 AS is updated only on filing of etds returns by
  50. traders. There is almost 6 - 12 months time for the PAN holder to known
  51. that a transaction of above nature has taken place on his name and only if
  52. he goes through form 26 AS. On noticing the tax credit of above nature
  53. while reconciling form 26 AS for tax credits for filing the return during
  54. subsequent financial year i.e July/September, the tax payer has an option
  55. to exclude the same and go ahead in filing the return. In that case the
  56. department will first initiate action from the tax payer side asking him to
  57. prove that he has not carried on the above transaction. The onus lies on
  58. the genuine tax payer for the fault committed by the traders. All this
  59. dispute settlement takes a time more than 2 years. The department may also
  60. ask the genuine tax payer to explain the sources of above transaction.
  62. *Impact on PAN holders who is a not tax payer:*
  64. This is not known to the non tax payer/filler at all and he comes know only
  65. when the tax department issues a notice to explain the source of above
  66. transaction. This is a long drawn process by which only genuine public are
  67. scapegoat again and again and intelligent business man and corrupt people
  68. are free from all hassles.
  70. Wayout
  72. The IR should stop publishing confidential tax particulars on the
  73. reservation charts that are displayed on the railway compartments. Further
  74. Tax department should put a rule that while quote the PAN the
  75. traders/dealers have to mandatory collect self attested pan xerox copy to
  76. avoid unnecessary litigation to the genuine public.
  78. Public should quote their PAN only while dealing in mandatory financial
  79. transactions and avoid quoting the same for identity proof.
  81. This is communicated to all in the larger interest of public, railways, and
  82. tax department.
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