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Cabinet Approves PAN 2.0: Digital Transformation of Taxpayer Services

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the PAN 2.0 Project, an upgrade of the current PAN/TAN system, with a financial outlay of ₹1,435 crore. The project aims to streamline and digitize the PAN services, enhancing taxpayer registration and service delivery. PAN 2.0 is a part of the government’s Digital India vision, which focuses on improving the digital infrastructure and making the PAN a common identifier across various government systems.

Key Features of PAN 2.0

Seamless Transition: There is no need for existing PAN holders to reapply, as the current PAN cards remain valid.

Digitization: Introduction of QR codes on PAN cards and significant upgrades to infrastructure for better security and user experience.

Improved Efficiency: The system promises faster service delivery, enhanced data consistency, and eco-friendly operations by minimizing paper use.

Centralized Ecosystem: Consolidation of core and non-core PAN/TAN activities for smoother operation and improved validation services.

Impact on Taxpayers

No Reapplication Needed: Current PAN cards will remain valid, and there is no need for taxpayers to reapply for a new card.

Enhanced User Experience: The digital transformation ensures quicker processing, increased security, and better integration across various government services, making the PAN a unified digital business identifier.

Free of Cost: The upgrades, including the addition of a QR code, will be provided free of charge to taxpayers.

Summary of the news

Why in News Key Points
PAN 2.0 Project Approved – Cabinet Committee on Economic Affairs (CCEA) approved the ₹1,435 crore PAN 2.0 Project.
– Objective: Digital transformation of PAN/TAN services.
– No reapplication required for existing PAN holders.
– Introduction of QR codes on PAN cards.
– Focus on eco-friendly, paperless systems.
– PAN 2.0 aligns with Digital India vision.
Project Features – Improved security, efficiency, and data consistency.
– Free of cost for all taxpayers.
– Aims for streamlined taxpayer registration and faster services.
Financial Implications – Financial outlay: ₹1,435 crore.
Key Benefits – Faster service delivery and improved quality.
– Single source of truth for data.
– Cost optimization and eco-friendly processes.
– Security enhancement for better agility.
Digital India Vision – PAN 2.0 as a common business identifier across government systems.
Relevance for Taxpayers – Over 78 crore PANs issued.
– Upgrade will benefit 98% individual PAN holders.

 

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