PAN 2.0: In a step aimed at helping taxpayers, the Cabinet Committee on Economic Affairs (CCEA) led by PM Narendra Modi has today given its nod for the PAN 2.0 Project of the Income Tax Department. According to the CCEA press release, the project will have a financial outlay of Rs 1435 crore.
The implementation aligns with the Government’s Digital India vision, establishing PAN as a unified identifier across specified government agencies’ digital platforms.
What is PAN 2.0 Project?
Income Tax Department’s PAN 2.0 Project brings forth several key advantages through its technology-driven transformation of taxpayer registration services:
- Ease of access and speedy service delivery with improved quality;
- Single Source of Truth and data consistency
- iEco-friendly processes and cost optimization; and
- Security and optimization of infrastructure for greater agility.
This e-Governance initiative aims to modernise taxpayer registration services by enhancing the digital experience through PAN/TAN services transformation.
It represents an advancement from the existing PAN/TAN 1.0 system, incorporating both core and non-core activities alongside PAN validation services.
A Permanent Account Number (PAN) is an alphanumeric identifier consisting of ten characters, issued as a laminated card by the Income Tax Department. It is provided to any “person” upon application or allocated directly by the department without a formal request.
The Income Tax Department utilises PAN to monitor and connect all transactions associated with an individual. This includes various activities such as tax payments, TDS/TCS credits, income returns, specific transactions, and official communications. PAN serves as a unique identifier linking a “person” to the tax department.
The introduction of PAN has streamlined the connection of various documents and activities, including tax payments, assessments, demands and arrears. It enables quick information access and helps match details about investments, loans and business activities gathered from various internal and external sources. This system aids in identifying tax evasion whilst expanding the overall tax base.