What’s new in PAN 2.0? Here’s how it'll change taxpayer services
The Cabinet Committee on Economic Affairs (CCEA) on Monday approved the PAN 2.0 project of the Income Tax Department. PAN 2.0 project aims at a technology-driven overhaul of the taxpayer registration services, which the government will implement for Rs 1,435 crore.
“PAN is an integral part of our lives. It is very significant for all of us, be it small businesses, and the middle class. PAN 2.0 has been approved to highly upgrade it and bring it to a new level. The existing system will be fully upgraded. The digital backbone will be done afresh,” says information and broadcasting minister Ashwini Vaishnaw.
What is PAN 2.0
The PAN 2.0 project enables technology-driven transformation of taxpayer registration services and has significant benefits including ease of access and speedy service delivery with improved quality, single source of truth and data consistency, eco-friendly processes and cost optimisation, and security and optimisation of infrastructure for greater agility.
What Happens to Existing Pan Card
The government has clarified that existing PAN cards will remain valid. “Citizens will not need to apply for new PAN numbers. The upgrade is aimed at enhancing functionality without affecting the validity of current cards,” says Vaishnaw.
Consolidation
The project is an e-governance project for re-engineering the business processes of taxpayer registration services through the technology-driven transformation of PAN/TAN services for the enhanced digital experience of the taxpayers. This will be an upgrade of the current PAN/TAN 1.0 eco-system consolidating the core and non-core PAN/TAN activities as well as PAN validation service.
The PAN 2.0 Project resonates with the government's vision enshrined in 'Digital India' by enabling the use of PAN as a common identifier for all digital systems of specified government agencies.
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Common Identifier
“The industry and the commercial sector had been demanding a common business identifier persistently. They had been seeking one number instead of multiple numbers. The government will strive towards making it a common business identifier,” Vaishnaw said.
Unified Portal
Various software currently involved in the PAN user registration are over 12 to 15 years old. In line with the need for a metamorphosed system in line with digital India, all PAN-related services will be consolidated in one place on the portal. The system will be completely paperless and fully digital/online.
Grievance Redressal
Under the unified portal of the PAN 2.0, immense focus will be given to the grievance redressal. The government will try to resolve user complaints and concerns in a speedy manner through the portal.
QR Code Feature
Even though the existing card will remain valid, the users have the option to upgrade to a QR code card at no additional cost. The QR code feature will facilitate quick access and faster verification of the taxpayer details.
Robust, Secure System
Currently, 78 crore PAN cards have been issued in India, out of which 98% are held by individuals. The new digital upgrade of taxpayer registration services will also bring in the much-needed data security systems and the tech facelift needed for efficient and modern tax administration.