PAN 2.0 Project
Why in news?
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Shri Narendra Modi, has granted approval for the PAN 2.0 Project proposed by the Income Tax Department.
About PAN 2.0 Project
1. PAN 2.0 will modernize and consolidate the existing PAN/TAN 1.0 eco-system by integrating core and non-core PAN/TAN activities, along with PAN validation services.
2. Aim: The project aims to transform taxpayer registration services using advanced technology, ensuring a seamless and enhanced digital experience for taxpayers.
Key Features of PAN 2.0
1. Common Business Identifier: The project consolidates PAN, TAN (Tax Deduction and Collection Account Number), and TIN (Taxpayer Identification Number) into a unified system. This addresses industry demands for a single identification number to simplify compliance.
2. QR-Code Integration: All new and existing PAN cards will feature an enhanced QR code. The QR code, first introduced in 2017, integrates financial transactions more effectively with the tax department.
3. Unified Portal: A new online, paperless portal will replace the nearly 15-20-year-old software currently in use. The portal will focus on improving ease of access, service delivery, and grievance redressal mechanisms.
4. Mandatory PAN Data Vault System: Entities such as banks and insurance companies that handle PAN information must securely store this data using a mandatory PAN data vault system. This feature aims to enhance data protection and cybersecurity.
5. Technology-Driven Transformation: The PAN 2.0 project will revamp taxpayer registration services to improve efficiency and accessibility. It will consolidate core and non-core PAN/TAN activities along with PAN validation services.
Benefits for Individuals and Businesses
Individuals: Existing PAN cardholders can upgrade to QR code-enabled PAN cards free of cost. The upgraded cards will enhance integration of financial transactions with the tax department. Applications for PAN cards under PAN 2.0 will be fully online and paperless.
Businesses: PAN will serve as a seamless, common system for filing tax challans and returns. This integration simplifies the filing of tax-related documentation and compliance procedures.
Why in news?
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Shri Narendra Modi, has granted approval for the PAN 2.0 Project proposed by the Income Tax Department.
About PAN 2.0 Project
1. PAN 2.0 will modernize and consolidate the existing PAN/TAN 1.0 eco-system by integrating core and non-core PAN/TAN activities, along with PAN validation services.
2. Aim: The project aims to transform taxpayer registration services using advanced technology, ensuring a seamless and enhanced digital experience for taxpayers.
Key Features of PAN 2.0
1. Common Business Identifier: The project consolidates PAN, TAN (Tax Deduction and Collection Account Number), and TIN (Taxpayer Identification Number) into a unified system. This addresses industry demands for a single identification number to simplify compliance.
2. QR-Code Integration: All new and existing PAN cards will feature an enhanced QR code. The QR code, first introduced in 2017, integrates financial transactions more effectively with the tax department.
3. Unified Portal: A new online, paperless portal will replace the nearly 15-20-year-old software currently in use. The portal will focus on improving ease of access, service delivery, and grievance redressal mechanisms.
4. Mandatory PAN Data Vault System: Entities such as banks and insurance companies that handle PAN information must securely store this data using a mandatory PAN data vault system. This feature aims to enhance data protection and cybersecurity.
5. Technology-Driven Transformation: The PAN 2.0 project will revamp taxpayer registration services to improve efficiency and accessibility. It will consolidate core and non-core PAN/TAN activities along with PAN validation services.
Benefits for Individuals and Businesses
Individuals: Existing PAN cardholders can upgrade to QR code-enabled PAN cards free of cost. The upgraded cards will enhance integration of financial transactions with the tax department. Applications for PAN cards under PAN 2.0 will be fully online and paperless.
Businesses: PAN will serve as a seamless, common system for filing tax challans and returns. This integration simplifies the filing of tax-related documentation and compliance procedures.