I invested (through online bank transfers) in a registered tech startup company in India almost 2 years ago, and they still did not give me a shareholding certificate. They kept delaying until Dec 2021 and now, they did not respond after. They are now reaching out regarding my PAN number for startup audit purposes. I want to get my shareholding certificate. Honestly, I do not know their intents on how they would end up using my PAN. Is there any risk in sharing my PAN number to my disadvantage. I have a hypothetical risk scenario in my head: could they use my PAN number to document my investment as "donations" to startup, thus evading my shareholding certificate.
A.Dear Client,
It is advised not to share PAN number even though it is unlikely to be used for fraud it is wise not to share without full knowledge of how and what is needed.
Thank You
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Vaidehi Samant
Responded 2 years ago
A.Was there any paperwork done for the investment. Your contract should have been attached to review the same. Ideally merely someone having your PAN number does not matter but such people should not be provided with authority to use your PAN number for their business purposes as you are an investor so they cannot use your information in unauthorised manner otherwise you may think to sue them in the Court of law. Thank you.
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Anonymous
Replied 2 years ago
Thank you Ms. Vaidehi for your quick response. Unfortunately, there is no signed agreements on the investment, but I do have written agreements in the form of emails. There has been small developments from the startup within last 24 hours. They are thinking of not giving the shareholding certificate and instead consider my investment as a loan and pay back my investment with some interest. I do not want to consider this option. Even the CA (who is doing the company tax filings) mentioned that my investment is being reported as loan and not as an investment. Does sharing my PAN put me at a disadvantage in proving my contribution as investment and not as loan?
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