Abon $7 "DIRECTORATE GENERAL OF INCOME TAX (SYSTEMS) NY it Cnt Crew hr xan ew DOS Vo s a nis Cacaa ames a cere Dl tscoranuanameaniiee | 652% 0 ‘The Commissioner of ncome-ax Admin. & TP Armedabad! Bargain Bhopal Bhubaneswar ‘Guwahati/_}tYderabad! Jaipuri Kanpur! Kochi! Ko} Nagpu Pata Pune Sub Third Party Verification (TPV) of roof of entity (PO) & Prof of Address (POA) of PAN applicants and inspection of PANTIN- by RCCs-F04, yy, Hf pre sintagam, wan oy upp A. Th arty VoteatonTPv) of Prot of Wnty (PH & Prot ot acta (POA) |) of PAN applicants — Kindly refer to the above mentioned subject. Ref: Letter F. No, oPAN/1/22/2008-16402-16441 dated 12.01.2010 issued by the O/o DIT{S}-4(Annexue "' enclosed) Background: As per terms of the contract signed by the Income Tax Department for issuance of PAN with both PAN Service Providers (SPs) ~ M/s NSDL and Ms UTITSL, the SPs are required to verify the identity and address of randomly selected PAN applicants out of new PAN applications processed and PAN correction requests. ‘The process of TPV is briefed as under: |. The verification of credentials of documents attached with PAN applications (Form 49A or correction form) is conducted through “Third Party Verification” (TPY) after the processing of PAN application. The authenticity of documents enclosed/provided with PAN application, of Proof of Identity (POI)/Proof of Address (POA) is vefied by the ‘TPV verifier. A certain fraction of applications are selected at random by tie Service Providers for Third Party Verification (TPV). Ji. Information of those PANs, where “Third Party Verification” fas, is provided to respective Assessing Officer through RCC concemed for further investigation underwhose jurisdiction PAN has been alloted. The data is shared through CUs. A system functionality has been provided to Assessing Officer on systom software for marking @ PAN os "FAKE" where Assessing Officer, based on facts in his possession, reaches to 8 logical conclusion that PAN has been obtained by furnishing wrong decuments by which proper identity or proper address of PAN applicant is not getting established, authenticated and verified, CCDs are regularly being sent to RCCs of the cases where verification of TPV is being done by SPs. It has been noted that high number of cases of TPV fallues is being shown by PAN Service Providers (SPs). These need to be acted upon quickly and appropriately by the Assessing Officers and the oficial of RCCs. In this regard a guidance note highlighting the procedure to be adapted by various Parties is specified below. 4. The modified Standard Operating Procedure (SOP) of TPV (Amexure ‘il enclosed) - For Falled’ cases: An intimation letter will be sent to the PAN applicant by the PAN SPs as a principle of natural justice atthe conmunication acress given in the PAN application through Speed PostRepistered Fost. On the bass of reply received from PAN appicants, the case wil be recatogorsed as ‘Genuine on re-veiication’ or ai “aie depending upon the reply of PAN applicant. Ifthe letter is receled back un-served or no reply i received from the PAN. applicant on receipt of later, then the matter would be refered to jurisdictional AO for further verfeationeithr trough enquiy or though other ‘modes avaiable with hi to reach to conclusion that the PAN fsGenune’ ori be marked Fake” 2, The modified format of report of TPV, which would be submitted by the PAN. SPs to RCC - A standard format for submiting the report to be maintained by NSDLIUTIITSL along with A.O Code, (Annexure ‘lll enclosed) 3. Action to be taken by jurisdictional Assessing Officer in case TPV fails: > The jurisdictional Assessing Officer is to give opportunity to the PAN holders in ‘whose case verification failed, to furnish the relevant documents 60 26 to prove ‘genuineness oftheir identty andlor address as the case may be, These may be done by production of relevant documents before the Assessing Officer in person fr through authorized representative or duly verified documents through mailpost etc. as deemed ft > If the PAN holder does not comply with the opportunity given by the Service Providers and the jurisdictional Assessing Oficer, then the Assessing Officer‘may issue show cause to the PAN holder asking hinvhner to explain that why histher PAN not be deactivatedimarked fake. > In case of failure of verification in above steps, the jurisdictional Assessing Officer may consider the falled cases of PANs reported in TPV verlication for ‘marking as ‘Fake’ as directed by letter F. No. oPAN/1/22/2006/16402-16441 dated 12.01.2010. The above measures may be taken expeditiously by the Assessing Officers and monitored by the supervisory authorities, > Third party verification agency(ies) and SPs to have regular meetings with the [RCC officers for updates on various issues, if required B. Inspection of PAN Centres/TIN-FCs by RCCs To faciltate the Inspection process - ‘SPs should inform the respective RCCs and Directorate of Income Tax (Systems) regarding the corrective measures taken by them in respect of irregularities nentioned by the RCCs in their inspection reports. Thereafter, RCCs again inspect those centres land send an inspection report to the SPS. In view of above, | am directed to request you to kindly instruct and guide the Assessing Officers regarding marking of ‘ake’ event on PAN where third party verification (TPV) of PAN applicants is found falled and to kindly provide support to PAN. SPs and their agencies regarding third party verification of PAN applicants. Its also requested to circulate among all RCCs under respective Pr. CCIT (CCA) region. Yours faithfully, — ; eg, rongANNEXURE -E liom a PIF oinacrondte gf REE SF erensy a the si oe E.Noopanunazanns - 184 02~ 1666) ‘The Commision af teeter Ae i ia aps PR ‘he Commit oflesone-s{Computer Operations) sl Muted Cuma Aomeaiad Shae Pane Kos npc Bsa Hert Shop Capes Pan Gre Soe Sut: Report Tc party Vesifiton of PANapleant-r indy feo he atone enn et ‘anes oF FAN with bot the PAN sve pois Me NSDL eo ls UTTSL, ‘he serie pois re mut veel he ity and res of dona 29 FAN spas fr ry one ith applica. The Service Movies we 60 be nig ei hn ay Veriton rn oh spec CaTCO) vino deta eating cmer vein cmp bet PAN Dede vere as gene sad tamer of PAN hole wore 3 1am dace to eqs you to iy get he dats of eh “Yeti A PAN tlt wed nnn ye AO. ta, Sir dete eget ou ie thn Aes PANG ake, whe he PAN asic dets a tn eieto, a 6 ftir inks poston proigs in uch ees iced neh lore Tax Ax 1961 Youre iy, Sesion: see aan Jn Dc ones) ‘ep tno be Cciricca) SER /Namb Cel ects gi! Bop tr Chan Cahn Gani 1 Heat? pu caper ae? Tao asa! Nap,ANNE XURE ~ IE Standard Opertaing Procedure of Third Party Verification of Proof of identi (PO!) and Proof of Address (POA) of PAN applicants. The following verification procedure that may be followed by PAN Service Providers (GPs) ater receipt of veifcation reports from Third Party Verification (TPV) agencies is as under 1. Existing verification procedure: After receipt of verification reports from TPV agencies, same is verified, compiled in the format specified by ITD and reported to the office of ADG (S} and CIT(COs) of respective Regional Compuier Centres (ROCs) by providing the data and scanned copies of documents in the CD. 2. Proposed additional verification procedure: Now the proposed procedure will be {olowed along with the above existing verification procedure. 1. For Genuine’ cases: The cases where the verification report is submitted ‘as ‘Genuine’ by the TPV agency, no futher verification willbe required at the PAN SPs, For such cases, report may be sent to the Offce of AD (S}1 and CIT (COs) of RECs by providing the data, . For Failed’ cases: For such cases, report may be sent to the Office of |ADG (S)-t and CIT (COs) of ROCs by providing the data and scanned copies of documents in the CD. The digitization of data should mandatorily be verified by the SPs in such cases and there after ‘an intimation letter will be sent to the PAN applicant as a principle of natural justice. at the communication address given in the PAN application through speed post registered post (format of letter is enclosed as Annexure A). ©. A period of 30 days from the date of issue of letter may be civen to the PAN applicants to revert with necessary clarification, The applicant may be given a choice to furnish the details through an electronic media also. “The email id of the SPs should be mentioned in their lett’ for future correspondence.{6 Ifno response Is received within 30 days from the applicants, identity & address verification reports as submitted by TPV agencies may be reported to respective ROCs with details of addtional verification by PAN ‘SPs as ‘could not be verified’ with copy to office of ADSIS)-I for appropriate action as per point no. 3 below. SPs will funish the copies of relevant reports viz. report of TPV, copy of letter sent by seed post! registered post in CDs to RCCs concerned for necessary action by jurisdictional Assessing Officer (AO). fe. If Applicant confirms his existence at given address: If the PAN applicant provides confirmation of histher existence at given address and provides valid supporting documents prescribed under Rule 114 (4) of Income Tax Rules, 1962, in such cases identity & address verification eports may be reported as ‘Genuine on rewverification’ to the Office of CCIT (COs) of RCCs and ADG (S)-1 and also refer the detalis cf previous letier of SP where the same case has been marked as failed. A new column as ‘Genuine on te-verification’ may also be introduced in the format of report, If the supporting documents received from the PAN applicant bears address different from the communication address giver in PAN ‘application or no supporting documents are received or invalid supporting documents (ie. not prescribed under Rule 114) ae received from the PAN applicants,, verification report received from the TPV agency alongwith details of subsequent verification will be sent to respective RCCs with copy t© the Office of ADG(S)-1 for appropriate action as per point no. 9 below. 49. If Applicant informs about change of address: If the PAN applicant informs about hisiher existence at a different address and provides ‘confirmation for submission of change request application alongwith acknowledgement number, in such cases verification reports submitted by ‘TPV agencies may be reported as ‘Genuine on re-verifization’ to respective RCCs ‘with details of clarifications received from the PANappicants with copy to office of ADGIS)-, The RCCS wil tke necessary ‘ation and to report to jrisdetional AO of outcome. ‘Action for falled cases: ITD wil take folowing appropriate action in vertficaton lod caves based on the vetifcation repors provided by PAN SPs with details of PAN holder/applicant ional verification ~ Credentials ofall such ‘verification fail Ibe verified independently by the jurisdictional Assessing Officer. Where the PAN “derappicant details are found to be fake’, the concemed Assessing Ofear may ak the PAN as FAKE’ and may futher initate prosecution proceedings in such cases provided under the Income Tax Act, 1961. The SPs wil furnish the copie of relevant 2 repot of TPV, Copy of letier sent by Speed post / Registered Fost to he ports vi 3 for further communication to AN applicant in CDS. for Verification failed cases to ROC: risitional AOs. srifieation Reports to ITD (Monthwise): Follow the existing procedure : Verfcation reports in respect of PAN appications enti as Genuine’ and Failed’ by TPV agencies may be submitted to,C1T (COs) ot respective RCC with copy tothe Office of ADG (S}-1 by providing he data for both eases) and scanned copies of documents inthe CDs (Only for alld cases) ‘Additional procedure: For‘faled verification cases’ where satisfactory claifeaton “dfrom the applicant for existence at given address as “Genuino on re- Cs with copy to the OfFce verification’. be submitted to CIT (COs) of respective RC! ADG (S)-t mentioning the previous reference where that case has been marted vas Fake’ by providing the data and scanned copies of documents in the CDs.ANN EXURE ~ J fodiap| on | ap0a | adn | apo oti, ssueer | ov |=80ra | ov | say won | awpe TON | sams | oN ov BR OV nva_|esddy foros gov | sosuen | as sumianasy[sooner ai 6] sousae | pouey 27g 4} AdL30] won sippy | auwy | soupy aio | saui0 frenuopisoy] sun, Sage IO SOS nua | ams | pus wendy oye 14 tea pany woureer aor ST S| RE NVA SIPPY “Ot] WHE NVA FUREY oq] SATA