A stationary shop owner in Bhilwara, Rajasthan has been hit with an Income Tax (IT) notice for a transaction of Rs 12.23 crore, which he claims he did not make. The shop owner has lodged a complaint with the police, stating that someone is misusing his financial data.
The Unexpected IT Notice
Kishangopal Chaparwal, a physically challenged resident of Sanjay Colony, runs a stationery shop and works as a photographer at weddings. He received a show-cause notice from the Income Tax Department on March 28, leaving him and his family in shock.
Misused PAN and Diamond Shell Companies
Chaparwal consulted a chartered accountant, who informed him that his PAN was misused in Mumbai and Surat to float two diamond shell companies to do bogus transactions running into several crores. He set up the shop after taking a loan. He is unable to pay the installments. He earns Rs 8,000 to 10,000 per month. He says that he has nothing to do with these bogus companies. Allegedly some fraudsters or scammers have cheated him.
An Appeal for Relief
The IT Department has requested Chaparwal to submit details related to the Rs 12.23 crore transaction. In response, he appealed to the authorities to provide relief in the matter. He has also lodged a complaint with the Subhash Nagar police station, stating that someone is misusing his financial data.
Increasing Income Tax Frauds
This case highlights the growing issue of Income Tax frauds, where even small earners like Chaparwal, who earns Rs 8,000 to Rs 10,000 per month, can be trapped in such scams. The notice from the IT Department, which seeks a reply by April 10, has given the photographer and his family sleepless nights.
The Growing Menace of Financial Scams
Financial scams targeting unsuspecting individuals are on the rise. Fraudsters are taking advantage of people’s lack of knowledge about financial matters and their vulnerability to set up fake companies and carry out illegitimate transactions. These bogus transactions can result in severe consequences for the victims, including financial loss, legal troubles, and damage to their reputation.
Measures to Protect Yourself from Financial Scams
To protect yourself from falling victim to financial scams, it is essential to be vigilant and take proactive measures. Here are some steps you can follow:
i) Secure your financial data: Keep your PAN, Aadhaar, and other important financial documents secure. Do not share these details with anyone unless absolutely necessary.
ii) Monitor your financial transactions: Regularly review your bank account statements and credit reports to identify any unauthorized transactions or discrepancies. Report any suspicious activity to your bank and the appropriate authorities immediately.
iii) Educate yourself about financial matters: Stay informed about the latest financial scams and learn how to identify red flags. This will help you make informed decisions and safeguard your financial well-being.
iv) Be cautious about sharing personal information: Be wary of unsolicited calls, emails, or messages asking for your personal or financial information. Do not disclose sensitive information to unknown individuals or entities.
v) Consult professionals: When in doubt, consult a professional financial advisor or chartered accountant to help you navigate complex financial matters and protect yourself from fraud.
Seeking Justice and Raising Awareness
In cases like Kishangopal Chaparwal’s, it is crucial to bring the fraudsters to justice and provide relief to the victims. Authorities must take prompt action to investigate such scams and ensure that the perpetrators are held accountable. Moreover, raising public awareness about the risks of financial fraud can help individuals take necessary precautions and minimize their exposure to such scams.