The Cabinet Committee on Economic Affairs (CCEA), led by Prime Minister Narendra Modi, on Monday (November 25) made a major announcement related to PAN Card. As of now, many of you might be aware with the latest development.
The centre has given the green light to the ambitious Rs 1,435 crore PAN 2.0 project, which was in the pipeline with the Digital India mission. The aim of this initiative is to overhaul the current system taxpayers registration and services, moving the Income Tax Department into a new era of digital efficiency.
Let's take a look at the new initiative and what as a taxpayer of the country we need to know about PAN 2.0.
What is PAN 2.0?
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In a simple words, the PAN 2.0 project is a modernisation of the existing Permanent Account Number (PAN) system and the project is designed to integrate both core and non-core functions related to PAN and Tax Deduction and Collection Account Number (TAN) services into a unified digital ecosystem.
Image used for representational purposes only | Representational image
As many might be confused about the latest update, one of the best part of this initiative is that there is no need for existing PAN card holders to re-apply or get a new PAN. This transformation will be completely digital, aiming for a paperless and streamlined taxpayer experience.
How Will PAN 2.0 Benefit Taxpayers?
The primary aim of this initiative is to enhance the taxpayer experience by reducing delays and streamlining processes. It is expected that with this update, the taxpayers of the country can enhance a simplified and faster service, making processes like registration and updates quicker and more efficient.
Other feature that is beneficial for the taxpayer in the PAN 2.0 initiative is that it will serve as a source of truth for all taxpayer information. In simple term, it means, it will have a improved data consistency. The integration of core and non-core PAN/TAN services will create a more consistent and accurate database, reducing the chances of errors and discrepancies.
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Furthermore, by shifting into a fully digital platform, the new initiative ensures a better sustainable and paperless process.
In addition, it also focuses on upgrading the digital security. In a evolving world of digitalisation, this new initiative feature enhanced security advancement, protecting taxpayers data.
How Will PAN 2.0 Impact the Digital Taxpayer Ecosystem?
The introduction of PAN 2.0 is a significant step towards the government's vision of a Digital India. With about 78 crore PANs already issued, most of which belong to individuals, this upgrade will play a crucial role in digitalising various government services. PAN 2.0 will be used as a common identifier across multiple government agencies, simplifying the process of accessing various services online.
