The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the Income Tax Department’s PAN 2.0 Project. The initiative, with a financial outlay of Rs 1,435 crore, aims to improve taxpayer services and aligns with the Government’s Digital India vision. PAN will now function as a unified identifier across designated government digital platforms.
Understanding the PAN 2.0 Project
The PAN 2.0 Project focuses on transforming taxpayer registration services through cutting-edge technology. Key benefits include:
- Faster, more accessible services with enhanced quality.
- Improved data consistency and reliability.
- Eco-friendly practices and cost savings.
- Upgraded security and optimized infrastructure for agile operations.
- This initiative modernizes the PAN and TAN systems, enhancing both core and non-core activities, and streamlining validation services to ensure efficiency in the taxpayer registration process.
What is a PAN?
A Permanent Account Number (PAN) is a 10-character alphanumeric identifier issued by the Income Tax Department. It links a person’s financial transactions to the tax department, including tax payments, income returns, TDS/TCS credits, and other activities. PAN enables quick data access and facilitates the identification of tax evasion while expanding the tax base.
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Why PAN 2.0 Matters
The upgraded PAN 2.0 system connects taxpayer information more effectively, supporting the automation of tax-related services. By integrating processes digitally, it ensures seamless management of investments, loans, and business activities while promoting compliance and transparency.
