Union Minister Ashwini Vaishnaw recently announced the introduction of PAN 2.0, an advanced version of India’s existing Permanent Account Number (PAN) system. This upgrade is designed to streamline operations for both businesses and citizens by incorporating cutting-edge technology. PAN 2.0 will significantly enhance taxpayer registration services and offer a more seamless and efficient digital experience.
Replacing the Current PAN System
The existing PAN system, introduced in 1972 under Section 139A of the Income Tax Act, has been in widespread use, with over 78 crore PAN cards issued, covering 98% of individuals. PAN 2.0, with an estimated cost of Rs 1,435 crore, will modernize the process, creating a more unified and secure identification system for taxpayers and businesses.
Key Features of PAN 2.0
The new system will involve the re-engineering of business processes related to taxpayer registration, utilizing a technology-driven transformation for PAN and TAN services. Here are some key features of PAN 2.0:
- System Upgrade: The new system will leverage technological advancements to enhance operational efficiency.
- Common Business Identifier: PAN will serve as a universal identifier for all business-related activities across specified government domains.
- Unified Portal: A single, integrated platform will consolidate all PAN-related services, providing a smooth user experience.
- Cybersecurity Measures: PAN 2.0 will incorporate stringent security protocols to protect user data from potential cyber threats.
- PAN Data Vault: Entities using PAN data will be required to store it securely.
Expectations from PAN 2.0
PAN 2.0 is expected to bring several improvements to India’s financial ecosystem, particularly aligning with the government’s Digital India initiative. Some anticipated benefits include:
- Streamlined processes for businesses and individuals.
- A unified system using PAN as a Common Business Identifier.
- An efficient grievance redressal system powered by advanced technology.
- Enhanced transparency, improved user experience, and robust data security.
No Change Needed for Existing PAN Holders
Minister Vaishnaw clarified that citizens will not be required to change their existing PAN numbers. PAN 2.0 will function as an enhancement, and existing users will receive a new card featuring a QR code for easy scanning. The new system will be fully online, continuing the modernization of India’s tax and business processes.