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Sharing PAN Numbers with Consultancies: Is It Safe?

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  • Post published:September 24, 2023
  • Post category:General


Last Updated on September 26, 2023 by Reema

Benefits & Risks of Sharing PAN Numbers with Consultancies

In today’s globalised employment market, consultancies and recruitment agencies take the lead and play an important role in linking prospective job seekers and employers. As part of the employment process, agencies frequently request candidates to supply various personal information, including the candidate’s Permanent Account Number (PAN) in India. The PAN is a 10-character alphanumeric code issued by the Income Tax Department primarily used for banking and tax purposes. Concerns have been raised, however, about the safety and security of applicants who share PAN information with consultancies. In this essay, we attempted to investigate the fundamental reasons behind this obligation, the potential risks involved and the steps individuals can take to ensure the safe sharing of their PAN numbers.

Protecting data like your PAN (Permanent Account Number) is crucial because it contains sensitive personal and financial information. Mishandling or unauthorized access can lead to identity theft, financial fraud, and privacy breaches. Being cautious about data security is essential to safeguard your personal and financial well-being.

The Role of PAN in the Recruitment Process

Before delving into the safety concerns surrounding PAN numbers, it’s important to understand why consultancies and employers request this information. The PAN serves various purposes in the recruitment and employment process:

  1. Tax Compliance: PAN is a critical tool for tax compliance in India. Employers must report employees’ PAN details to the Income Tax Department, ensuring that taxes are withheld and deposited correctly.
  2. Background Verification: PAN helps verify the authenticity of an individual’s identity, which is essential for background checks. It ensures that candidates are who they claim to be and have not provided false information.
  3. Salary and Benefits: PAN is often linked to salary payments and benefits such as provident fund contributions, gratuity, and employee tax deductions. It ensures accurate disbursement of these financial components.
  4. Statutory Requirements: Various government regulations and statutory requirements necessitate collecting and verifying PAN numbers to prevent tax evasion and financial fraud.

The Risks and Concerns

While collecting PAN numbers is essential for legitimate reasons, valid concerns are associated with sharing this sensitive information with consultancies and employers. Some of the key risks and concerns include:

  1. Data Security: The primary concern is data security. Once you share your PAN number with a consultancy, it becomes part of their database, and there is a risk of unauthorized access or data breaches, potentially leading to identity theft or financial fraud.
  2. Misuse of Information: There is a risk that consultancies or individuals within these organizations may misuse your PAN number for fraudulent activities, such as opening bank accounts, taking out loans, or conducting other financial transactions in your name.
  3. Phishing and Scams: Sharing PAN numbers with consultancies can make individuals vulnerable to phishing attacks. Malicious actors may pose as recruiters or employers to trick individuals into providing additional personal or financial information.
  4. Third-party Sharing: Some consultancies may share your PAN and other personal information with third-party entities, such as marketing companies or data brokers, without your consent, potentially leading to unwanted solicitations or privacy violations.
  5. Long-term Retention: Consultancies may retain their PAN and personal data even after the recruitment process is complete, raising concerns about how this information is stored and used in the long term.
  6. Lack of Control: Once you share your PAN number, you have limited control over how it is handled and who has access to it, making it challenging to safeguard your sensitive information.

Balancing Safety and Compliance

While there are legitimate concerns about sharing PAN numbers, it’s essential to strike a balance between ensuring your safety and complying with the requirements of the recruitment process. Here are some steps you can take to safeguard your PAN information while still meeting the demands of potential employers and consultancies:

  1. Verify the Legitimacy of the Consultancy: Before sharing your PAN number, verify the legitimacy of the consultancy or recruitment agency. Check their website, contact information, and online reviews. Legitimate organizations will have a professional online presence.
  2. Minimize the Sharing of Sensitive Information: Share only the information necessary for the initial stages of the recruitment process. You can provide additional sensitive data once you are further along in the hiring process and have confirmed the legitimacy of the employer or consultancy.
  3. Ask About Data Handling Practices: Inquire about the consultancy’s data handling practices, including how long they retain personal information, who has access to it, and the security measures to protect your data.
  4. Use Secure Communication: When communicating with consultancies or employers, use secure and encrypted methods of communication, such as encrypted email services, to share sensitive information.
  5. Verify the Request: If you receive a request for your PAN number or other personal information, independently verify the request’s legitimacy by contacting the consultancy or employer directly through official contact information. Avoid clicking on links or responding to unsolicited requests.
  6. Limit Access: If you as a candidate share your PAN number with any agency, request that it be accessed only by authorized personnel/authorities who require it for legitimate purposes and also take an extra step to ensure that it is not shared with third parties without your consent.
  7. Regularly Monitor Your Financial Statements: Keeping a close eye on your bank and your financial statements and monitoring for any unauthorized or suspicious transactions would be a step to take. Report any discrepancies to your bank and the relevant bank or the authorities immediately.
  8. Report Suspicious Activity: If you come across any activity giving a suspect that your PAN number or personal information has been misused or compromised, then immediately report it to the police and the relevant authorities for further investigation and actions as required.
  9. Use Identity Protection Services: Consider using identity protection and monitoring services that can help safeguard your personal information and alert you to any suspicious activity.

Legal Framework for Data Protection

The Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011, govern data protection and privacy in India. These rules outline the procedures for collecting and protecting sensitive personal data, including PAN numbers. It is, therefore, essential to understand your rights under these standards and the obligations of the organizations processing your data. 

 The Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011, again a subset of the Information Technology Act, 2000, form India’s primary legal framework for data protection. These guidelines are fundamental to the country’s data protection and privacy, ensuring people’s safety.

Key features of the legal framework for data protection in India include:

  1. Definition of Sensitive Personal Data: The rules define “sensitive personal data or information” (SPDI), encompassing information such as passwords, financial data, biometric data, and medical records, among others.
  2. Data Collection and Processing: The framework imposes obligations on organizations collecting and processing SPDI. They must obtain explicit consent from individuals, provide notice of data collection, and ensure that data is collected for lawful purposes only.
  3. Security Measures: Organizations must implement reasonable security practices and procedures to protect SPDI from unauthorized access, disclosure, alteration, or destruction. Non-compliance can result in legal consequences.
  4. Transfer of Data: The rules restrict the transfer of SPDI outside of India unless the recipient ensures the same level of data protection as prescribed by Indian law.
  5. Data Breach Notification: Organizations must report data breaches to the affected individuals and the Indian Computer Emergency Response Team (CERT-In) promptly.
  6. Penalties: Any failure to comply with the rules established by law may result in sanctions. Sanctions can include not only fines but also imprisonment. And it depends on the nature and extent of the violation.


Sharing PAN numbers with consultancies and employers is a common requirement in the recruitment process, but it comes with potential data security and privacy risks. While it’s essential to meet the legitimate demands of the hiring process, individuals should take steps to safeguard their sensitive information and be cautious when sharing it. Verifying the legitimacy of consultancies, asking about data handling practices, and using secure communication methods can help balance safety and compliance. Ultimately, individuals should exercise due diligence and be vigilant when sharing sensitive information to protect themselves from risks and fraud.

Being responsible for the sharing of data is vital for any individual. Before sharing any personal data, it is important that you make sure it is safe and will not affect your privacy.

Hence, our team, Kanakkupillai, helps you ensure that all the data you share is safe and secure without compromising an individual’s privacy.

Kanakkupillai can help you preserve your PAN number by advising you on secure data exchange practices, confirming the legality of companies requesting your PAN, and guaranteeing compliance with data protection legislation. Their knowledge can assist you in navigating the intricacies of exchanging sensitive information while protecting your data.


Welcome to! Greetings, I'm Reema, a Legal Conflicts Analyst with a fervent commitment to resolving legal disputes and ensuring a fair and just resolution for all parties involved. My extensive experience in analyzing and mediating legal conflicts, coupled with a deep understanding of the nuances of various legal domains, positions me as your reliable guide in navigating the complexities of legal disputes. I firmly believe in promoting diversity and inclusivity within the realm of legal conflicts, ensuring that all individuals, regardless of their backgrounds, have access to impartial and equitable conflict resolution. I am privileged to be a part of your journey towards achieving resolution and clarity through this blog. Here, I will provide valuable insights and strategies tailored to help you navigate legal challenges effectively. Thank you for entrusting me with the opportunity to assist you on your path to resolution and legal peace. For more information and resources, please visit