Cabinet clears PAN 2.0, card to feature QR code

Context: An upgrade of existing Permanent Account Number (PAN) with an additional
feature of QR code on the cards along with a proposal to make PAN the common
identifier for businesses was approved by the Union Cabinet on Monday. The
Cabinet approved the PAN 2.0 project of the Income tax department, with the
cost of Rs. 1435 crore, under which the existing system will be upgraded
completely, the digital backbone will be revamped, and PAN will be made as a
common business identifier for all digital systems of specified government
agencies and the upgrade for existing PAN holders will be free of cost.

Key points

·      
Overview: With the upgrade, PAN is
expected to become a strong source of identification and information for the
authorities, as it is already linked to the other identification number of
Aadhaar.

·      
PAN 2.0 Project: PAN 2.0 is an
e-Government initiative aimed at upgrading the digital experience for
taxpayers. It involves redesigning taxpayer registration processes, including
PAN and TAN services, through technology-driven improvements.

Budget and Goals of PAN 2.0 - With an allocated budget of ₹1,435 crore,
the initiative is designed to:

Ø  Transform
taxpayer registration services through technology.

Ø  Deliver faster,
more accessible, and high-quality services.

Ø  Implement
eco-friendly practices and cost optimization.

Ø  Enhance
infrastructure agility, security, and data consistency.

·       Concepts
Similar to PAN Card: TAN (Tax Deduction and Collection Account
Number) - This is a unique 10-digit number that is issued to individuals
and entities who must collect or deduct tax on payments made as part of tax
Deducted at Source (TDS) under the Income Tax Act. TAN must be quoted when
applying for TDS or Tax Collected at Source (TCS) challans made to disburse the
refund as well as on certificates. Failure to quote the TAN would result in a
fine of Rs. 10, 000.

TIN (Taxpayer
Identification Number) - TIN number is a unique 11-digit number that is used
to identify dealers who are registered under Value Added Tax. Allotted by
individual states, it is compulsory for all manufacturers, traders and dealers
to register for a TIN number. This number is to be quoted when generating
invoices, orders or quotations by both the issuing as well as the receiving
company. It is also used to identify assesses under the Income tax Act of
1961.A.