PAN 2.0: The Central government has rolled out PAN 2.0, an upgraded iteration of the Permanent Account Number (PAN) system, aimed at enhancing taxpayer services in the country in line with its Digital India campaign. PAN 2.0 is an electronic governance project that aims to streamline the taxpayer registration process through the use of technology. This modernisation effort will entail a comprehensive revamp of the current PAN/TAN 1.0 system, simplifying key and ancillary PAN/TAN functions as well as PAN validation services.
The PAN 2.0 project, with a budget of Rs 1,435 crore, seeks to establish the PAN as a universal business identifier across designated government digital platforms. The primary goal is to develop a centralized digital platform for all PAN-related services, facilitating seamless operations and enhancing grievance resolution processes. As part of the project, QR-enabled PAN cards will be implemented to bolster security measures and streamline the validation of PAN information.
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Universal business identifier
The main focus of the PAN 2.0 project lies in the enhanced technology framework, which will empower PAN to function as a universal identifier for businesses.
The PAN 2.0 project aims to centralise all PAN/TAN services on a single unified portal overseen by the income tax department (ITD). This comprehensive portal will offer a range of end-to-end services related to PAN and TAN, such as allocation, updates, corrections, Online PAN Validation, understanding your assessing officer (AO) through Know Your AO, linking Aadhaar with PAN, verifying your PAN details, applying for an e-PAN, requesting a reprint of a PAN card, and more.
Businesses can take advantage of a streamlined system that combines PAN, TAN, and TIN. This integration streamlines tax return and challan filing, eliminating duplicates and improving adherence to regulations.
The Union finance ministry said: “In the PAN 2.0 project, all PAN/TAN related services will be hosted on a single unified portal of ITD (income tax department). The said portal would host all end-to-end services related to PAN and TAN (Tax Deduction and Collection Account Numbers) like allotment, updation, correction, Online PAN Validation, Know Your AO (assessing officer), Aadhaar-PAN linking, verify your PAN, request for e-PAN, request for re-print of PAN card, etc.”
“PAN will now be the new Business Aadhaar. Today a business entity has many registrations, eg PAN, TAN, TIN, GSTIN, CIN, EPFO number, etc. a combined common identifier powered by technology would add to the ease of running a business in India. The new project is being built grounds-up on an upgraded technology backbone. Over the last decade, India’s digital stack has built immense capabilities and PAN integration will provide a significant boost to this effort. A revamped framework would hence have been thought appropriate,” said CA Anand Bathiya, President, Bombay Chartered Accountants’ Society (BCAS).
“The PAN 2.0 initiative is a significant step toward a seamless, digital tax ecosystem, aligning with the Government’s vision of a digital Bharat. The upgraded PAN with QR code integration will simplify KYC processes, improve data accuracy, and enhance service delivery for users. Any individual applying for a new PAN card, will have these features include automatically,” said Anand Kumar Bajaj, Founder, MD & CEO, PayNearby.
Rishi Agrawal, CEO of regulatory technology firm TeamLease Regtech, said businesses in India currently possess a minimum of 23 unique identities. These identities are issued by various branches of both central and state governments and each has its own specific lifecycle, often necessitating regular renewals. Examples of these identities include PAN, GSTN (Goods and Service Tax Network), CIN (Corporate Identification Number), TAN, LIN (Labour Identification Number), Professional Tax Number, Factory Licence Number, and Shops & Establishment registration.
“The biggest hurdle in building a paperless, presence-less and cashless compliance ecosystem is the missing single identity. PAN 2.0 promises to solve the identity crisis and serve as a unique identifier for enterprises,” Agarwal noted.
What is a PAN data vault system?
A PAN data vault system for businesses, inspired by DigiLocker, is being considered under PAN 2.0. The implementation of this system is aimed at enhancing data protection and cybersecurity measures.
“The PAN-related information is used by many entities, such as banks, insurance companies… So, those (entities) who take details of PAN will have to keep PAN data safely, mandatorily through the data vault system,” Minister Ashwini Vaishnaw has said.
A mandatory PAN data vault will securely store user information, minimising the risk of breaches and ensuring compliance with modern cybersecurity standards.
Key features of PAN 2.0
> QR Code Integration: Improved QR codes will be featured on all new and current PAN cards to enhance system compatibility.
> Data Vault System: A secure repository will be implemented to safeguard PAN data and bolster cybersecurity measures.
> Unified Portal: An updated single platform will replace outdated software, streamlining grievance redressal and application processes.
> Paperless Applications: PAN applications can now be conveniently submitted online.
Integrated Ecosystem: PAN/TAN activities will be merged for enhanced service delivery and data coherence.