The government on Monday announced the ₹1,435 crore PAN 2.0 Project to make the permanent account number a 'common business identifier' for all digital systems of government agencies.
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has given its approval for the PAN 2.0 Project of the Income Tax Department with a financial outlay of ₹1,435 crore, Information and Broadcasting Minister Ashwini Vaishnaw said.
PAN 2.0 Project
The PAN 2.0 Project enables technology-driven transformation of taxpayer registration services and is aimed at ease of access and speedy service delivery with improved quality.
Single source of truth and data consistency; eco-friendly processes and cost optimization; and security and optimisation of infrastructure for greater agility, are the other benefits of the project.
"The PAN 2.0 Project resonates with the vision of the Government enshrined in Digital India by enabling the use of PAN as Common Identifier for all digital systems of specified government agencies," an official release said.
PAN 2.0 Project is an e-Governance project for re-engineering the business processes of taxpayer registration services through technology-driven transformation of PAN/TAN services for enhanced digital experience of the taxpayers.
"This will be an upgrade of the current PAN/TAN 1.0 eco-system consolidating the core and non-core PAN/TAN activities as well as PAN validation service," the release said.
Currently, about 78 crore PANs have been issued, of which 98 per cent are to individuals.
What is PAN?
The Income Tax Department issues a laminated card with a ten-character alphanumeric identification known as a Permanent Account Number (PAN). Any "person" can apply for it, or the department may assign it to them immediately without a formal request.
PAN is used by the Income Tax Department to keep track of and link all of an individual's transactions. Tax payments, TDS/TCS credits, income returns, particular transactions, and official correspondence are just a few of the many activities that fall under this category. A PAN is a special identification number that connects a "person" to the tax authority.
The linking of several documents and actions, such as tax payments, assessments, requests, and arrears, has been made easier with the advent of PAN. It facilitates fast access to information and assists in matching information obtained from a variety of internal and external sources on loans, investments, and company operations. This approach broadens the tax base while assisting in the detection of tax evasion.
Benefits to common citizens:
- Technology-driven, online, paperless system
- Aims towards Common Business Identifier
- Effective tech-driven Grievance Redressal System
