But tax authorities are anticipated to provide you with a affected person listening to and consultants stated those that have been affected by the fraud could have to show that their PAN has been misused.
Last month, TOI had first reported how the earnings tax division had come throughout a minimum of 8,000-10,000 circumstances of incorrect reporting of PAN by unscrupulous components. The earnings tax division stated this didn’t imply that it was going to reopen previous circumstances and had as a substitute “underlined” that the e-verification had been accomplished to “alert cases of mismatches of information for FY 2020-21 only without affecting the others”.
The division didn’t touch upon the difficulty or the variety of taxpayers who’ve revised their returns.
“Although the department has clarified that there is no special drive, those whose PAN has been misused may still receive a notice or question confirming about their rental income in case such landlords appear in the sample collected by tax authorities. But they should not worry as the department is aware of the issue of misuse of PAN, rather than investigating deeply on rental income escaping in the hands of landlords. Taxpayers should, however, cooperate and provide appropriate response to such notice and in a timely manner to avoid inconvenience,” stated Kuldip Kumar, associate at Mainstay Tax Advisors.
The individual whose PAN has been misused may have to present some further paperwork. “In case of persons whose PAN have been misused by persons receiving HRA, even if an assessment is reopened based on misquoting of PAN by the recipient of HRA, the PAN holder can establish that he/she is not in receipt of rent and seek for dropping of assessment against them. Following documents can be used to establish that PAN has been misquoted: (a) bank statement to show that no rent was received, and (b) self-sworn affidavit to state that the subject property is not owned by the PAN holder,” stated S Sriram, associate at Lakshmikumaran and Sridharan.
