Government Clears Rs 1,435 Cr PAN 2.0

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.