India is rolling out PAN 2.0: A unified, biometric-backed Tax Identity System
What’s new?
The income tax department has selected mid-sized information technology firm LTIMindtree Ltd for its project to upgrade technology infrastructure for managing Permanent Account Numbers (PANs).
Background:
PAN, a ten-digit alphanumeric number, is needed for filing tax returns, opening bank accounts, making high-value cash deposits, and buying stocks, property, and four-wheelers.
Why the upgradation?
The effort is to streamline and modernize the process of issuing and managing PAN and TAN-another alphanumeric number needed for the purpose of tax deduction or collection at source.
What is expected in PAN 2.0?
1. This upgradation project will comprehensively handle all matters related to PAN and TAN, including allotment, updates/corrections, Aadhaar-PAN linking, re-issuance requests, online PAN validation, etc., as a one-stop platform.
2. The system will feature a PAN Data Vault, integrated backend systems, and enhanced QR code features to prevent fraud and streamline updates.
3. The government said in 2024 that this project would help optimize costs, ensure security, and facilitate operations. The e-governance project seeks to enhance taxpayers’ digital experience by upgrading the current PAN-TAN ecosystem.
4. Finance minister Nirmala Sitharaman said in her February 2023 budget speech that for the business establishments with a PAN number, it would be used as the common identifier for all digital systems of specified government agencies.
5. Free e‑PAN would be issued by email. Also it is expected to foster processing, have a robust grievance redressal mechanisms, and increased integration with GST, MCA, and other regulatory databases.