Answer By law4u team
Using another person's Permanent Account Number (PAN) or Aadhaar card illegally is a serious criminal offense under Indian law and attracts severe legal consequences, including heavy fines and imprisonment. When an individual fraudulently uses someone else's identity documents, it typically involves identity theft, cheating, forgery, and data theft. These actions violate multiple statutes, primarily the Information Technology Act, 2000 (IT Act) and the Bharatiya Nyaya Sanhita, 2023 (BNS), which has replaced the older Indian Penal Code, 1860 (IPC). Under the provisions of the IT Act, specifically Section 66C, if anyone dishonestly or fraudulently makes use of the electronic signature, password, or any other unique identification feature of any other person, such person shall be punished with imprisonment of either description for a term which may extend to three years and shall also be liable to fine which may extend to rupees one lakh. Since Aadhaar is a digital identity number backed by biometric data and stored in electronic databases, and PAN is linked digitally to financial databases and income tax portals, unauthorized use directly falls under this section. Furthermore, Section 66D of the IT Act penalizes cheating by personation by using computer resources, which applies when someone uses fake or stolen credentials online to deceive others or financial institutions. This offense is punishable with imprisonment of up to three years and a fine of up to one lakh rupees. In addition to the IT Act, the Bharatiya Nyaya Sanhita, 2023 (BNS) contains several stringent provisions that apply to identity theft and document misuse. Section 318 of BNS deals with cheating and dishonestly inducing delivery of property, which applies if someone uses a stolen PAN or Aadhaar to secure loans, open bank accounts, or obtain financial benefits unlawfully. Cheating by personation is specifically covered under Section 319 of BNS, punishing individuals who pretend to be someone else or knowingly substitute one person for another, carrying a prison term that can extend up to three years, or a fine, or both. When fake documents are created or genuine documents are tampered with to misuse a PAN or Aadhaar, the offense of forgery is triggered. Under BNS Section 336, forgery for the purpose of cheating is punishable with imprisonment of up to seven years and a fine. If the forged document is a valuable security or an electronic record purporting to be a record of the government or a public authority, Section 340 of BNS applies, which can attract imprisonment for life or a term extending up to ten years, along with a fine. Therefore, fabricating Aadhaar cards or altering PAN details to deceive authorities or private entities invites these grave penal consequences. The Income Tax Act, 1961 also imposes strict penalties for quoting a false PAN or using someone else's PAN. Under Section 272B of the Income Tax Act, the Assessing Officer may direct a person who quotes a false PAN or uses another person's PAN to pay a penalty of ten thousand rupees for each default. Moreover, misusing a PAN to evade taxes or file fraudulent returns can lead to prosecution under Section 276C and Section 277 of the Income Tax Act, inviting rigorous imprisonment ranging from three months to seven years depending on the scale of tax evasion involved. Beyond criminal liability, the victim whose identity has been compromised suffers civil and financial damages. If someone uses your stolen PAN or Aadhaar to take out a loan, default on credit card payments, or engage in money laundering, it can severely ruin your CIBIL score, freeze your bank accounts, and entangle you in prolonged legal investigations to prove your innocence. To mitigate these risks, the affected person should immediately file a police cybercrime complaint through the national cybercrime reporting portal, inform the Unique Identification Authority of India (UIDAI) to lock their biometrics, and notify the Income Tax Department regarding the misuse of their PAN. The law holds the perpetrator strictly liable for all financial and legal damages caused by the illegal acquisition and deployment of identity documents.
