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Mahesh

27/11/24 19:01 PM IST

Income Tax Department has introduced new PAN 2.0 project

In News
  • The Union Cabinet approved the PAN 2.0 Project to make PAN the single source of truth and data consistency.
PAN 2.0 Project
  • PAN enables the I-T Department to link transactions such as tax payments, Tax Deducted at Source (TDS)/Tax Collected at Source (TCS) credits and income returns with the department.
  • Essentially, PAN acts as an identifier for the person with the tax department and remains the same once allotted.
  • Further, TAN stands for Tax Deduction and Collection Account Number, a 10-digit alphanumeric number issued by the I-T Department.
  • TAN has to be obtained by people responsible for deducting or collecting tax at source.
  • It is compulsory to quote TAN in TDS/TCS return, any TDS/TCS payment challan and TDS/TCS certificates.
  • The PAN 2.0 Project, with a financial implication of Rs 1,435 crore.
  • Under it, the existing PAN system will be upgraded and its IT backbone will be revamped.
  • Currently, PAN-related services are spread across three platforms: the e-filing portal, the UTIITSL portal, and the Protean e-Gov portal.
  • These services will now be integrated into a single, unified portal.
  • This one-stop platform will handle comprehensively issues/matters related to PAN and TAN
  • By doing so, the I-T Department endeavours to simplify processes, eliminate delays, and improve grievance redressal mechanisms.
Features of the project
  • The QR code feature, which began in 2017-18, helps validate the PAN. This feature will continue with some enhancements.
  • The project also aims to set up a “mandatory PAN data vault system” for all entities using PAN data, including financial institutions, government agencies, and central and state government departments through an online validation service.
  • The PAN related information is used by many entities such as banks, insurance companies.
  • So, those (entities) who take details of PAN, they will have to keep PAN data safely, mandatorily through the data vault system.
  • PAN holders having an old PAN Card without QR code have an option to apply for a new card with QR code.
  • In PAN 2.0, the submission of applications is going to be online (paperless).
  • Also, PAN 2.0 will help weed out duplicate PANs and minimise instances of one person holding more than one PAN.
  • For businesses, this would mean a seamless, common system for filing various tax challans and returns.
  • In the PAN 2.0 Project, all PAN/TAN related services will be hosted on a single unified portal of ITD.
  • The said Portal would host all end-to-end services related to PAN and TAN like allotment, updation, correction, Online PAN Validation (OPV), know your AO, AADHAAR-PAN linking, verify your PAN, request for e-PAN, request for reprint of PAN card etc.
Source- Indian Express

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