The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Monday has approved the PAN 2.0 Project of the Income Tax Department. According to CCEA release, the project will have a financial outlay of Rs 1,435 crore.
The release stated, 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.
---Advertisement---
The PAN 2.0 Project aligns with the Government's Digital India vision by enabling the use of PAN as a common identifier for all digital systems of specified government agencies, the release added.
---Advertisement---
PAN 2.0 Project To Enhance Taxpayer Services
The Project enables technology driven transformation of Taxpayer registration services and has significant benefits including: 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 optimization of infrastructure for greater agility.
What Will Be Under PAN 2.0?
Upgrade the existing system
Common Business Identifier for all business related activities in specified factors
Unified portal
Robust cyber security measures
PAN Data Vault system mandatory for all entities using PAN data
Benefits To Common Citizens
Technology driven, online, paperless systems
Aims towards Common Business Identifier
Effective tech driven Grievance Redressal System
Union Minister Ashwini Vaishnaw on Monday announced several key decisions made during the Cabinet meeting. These focused on technological advancements, infrastructure development, and support for farmers, students, and entrepreneurs.
Speaking about the PAN card upgrade, Vaishnaw said, “The PAN card is an integral part of our lives, especially for the middle class and small businesses. It has undergone significant upgrades, and PAN 2.0 has been approved today. The existing system will be enhanced, and a robust digital backbone will be introduced.”
Union Minister added, “We will explore whether it can serve as a common business identifier. A unified portal will be established, which will be entirely paperless and online, with a strong focus on redressal.”
What Is PAN?
Permanent Account Number (PAN) is a unique 10-digit alphanumeric number issued by the Income Tax Department to Indian taxpayers. PAN enables the department to identify/ link all transactions of the PAN holder with the department. These transactions include tax payments, TDS/TCS credits, returns of income, specified transactions, correspondence etc, and so on. It facilitates easy retrieval of information of PAN holder and matching of various investments, borrowings and other business activities of PAN holder.