What is PAN 2.0? Government's ₹1,435 Crore Initiative to Transform India's Tax Services

Prime Minister Narendra Modi's Cabinet Committee on Economic Affairs (CCEA) authorized the Income Tax Department's (ITD) ₹1,435-crore PAN 2.0 project on November 25th. This initiative would modernize the current system and require user agencies to preserve personal data.

Following the cabinet meeting, Ashwini Vaishnaw, the minister of information and broadcasting, briefed the media, stating that PAN 2.0 will completely redesign the current system's I-T backbone and serve as a common identity for firms, a long-standing need from the business community.

PAN 2.0 Approved

"The PAN card is essential to our daily life, particularly for small enterprises and the middle class. PAN 2.0 has received its approval after undergoing  major modifications. A strong digital backbone will be implemented, and the current system will be improved," Vaishnaw stated.

78 Cr PAN Holders in India

Approximately 78 crore (780 million) Permanent Account Numbers (PANs) have been issued by the Union government thus far, with approximately 98% of these being granted to people. Specific questions about the project were not answered by the finance ministry or the IT department.

PAN as a Common Identifier

The official statement emphasized the role of PAN (Permanent Account Number) as a universal identifier. The announcement said:
"The PAN 2.0 Project enables the use of PAN as Common Identifier for all digital systems of specified government agencies, aligning with the Government's vision under Digital India."

Budget and Goals of PAN 2.0

With an allocated budget of ₹1,435 crore, the initiative is designed to:

• Transform taxpayer registration services through technology.
• Deliver faster, more accessible, and high-quality services.
• Implement eco-friendly practices and cost optimization.
• Enhance infrastructure agility, security, and data consistency.

What is PAN 2.0?

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.

3 Duties of Service Providers

The CCEA's notice outlines three major responsibilities for the service provider:

1. Infrastructure Development: The responsibility to design, acquire, develop, install, and maintain all system components, including networking, hardware, software, and PCs goes to the service providers. 
2. Data Migration: The provider must ensure seamless migration of all relevant historical data to the new system.
3. System Integration: It must facilitate seamless integration of internal and external systems to support PAN 2.0 operations.

This transformative initiative aligns with the Digital India vision, ensuring efficiency, accuracy, and enhanced taxpayer services across the country.

Cabinet approves the PAN 2.0 Project: Press Release

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