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Cabinet Approves PAN 2.0

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Cabinet Approves PAN 2.0: All You Need To Know

PAN 2.0 is an upgraded version of the current system, using technology to make registration easier and more accessible for taxpayers.
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The Union Cabinet has greenlit the PAN 2.0 Project, a significant upgrade to the existing Permanent Account Number (PAN) system, aiming to improve taxpayer services and streamline business operations.

What is PAN 2.0?

PAN 2.0 is an advanced version of the current PAN system, using technology to make registration easier and more accessible for taxpayers. The project, with a budget of ₹ 1,435 crore, will revamp the digital infrastructure of the Income Tax Department to provide a seamless experience for individuals and businesses.


Features of PAN 2.0

  • PAN cards will now feature an embedded QR code for enhanced functionality and security.
  • PAN will be a universal identifier for businesses across specified government digital systems.
  • The project will re-engineer taxpayer registration processes and consolidate PAN/TAN services into a unified platform.
  • The project focuses on being eco-friendly, cost-efficient, secure, and fast.
Benefits for users

  • Taxpayer registration services will become faster and more user-friendly.
  • Existing PAN holders can upgrade to PAN 2.0 at no additional cost.
  • A unified system will improve service delivery and ensure data consistency.
Do I need to apply for a new PAN card?

No, you need not apply for a new PAN card. Under the PAN 2.0 initiative, your existing PAN card will remain valid, and the upgrades, including the QR code feature, will be made available without any action from current cardholders.

Significance for businesses

By making PAN a common identifier, the project aligns with the government's Digital India vision. Businesses can leverage this universal identifier to streamline interactions with government agencies, ensuring smoother compliance and operations.

Scope

So far, 78 crore PAN cards have been issued, with 98 per cent belonging to individuals. PAN 2.0 will consolidate the existing ecosystem and introduce efficient, eco-friendly processes for all users.
 
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Anupama_Jha said:
Rest 24 cr don't have that much income which comes under taxation.

Ex -
Click to expand...

Wake up my friend....Visit any Jewelary shop and just observe for 15 mins, how many people are making payments in CASH and how many in white

My friend is doctor, her monthly income is more than 15 lakh...All cash receipts and no UPI/credit card accepted and tax payment is NIL..She does not use any UPI app/Bank Accounts/Zomato/Amazon etc...She has put her kids in school whose fees is less than PAN limit..
 
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manojsurya99 said:
Today, Government invests in Digital Public Infrastructure alot as there is so much untapped potential in the market. And the reason is as follows:
a. If I ask anyone how much does a Reliance or Tata earns, anyone can say the answer because it is publicly available. Financial Institutions are ready to give Fat cheques to such companies, if they want.
Click to expand...
Can u pls check how much tax they save through philanthropy which remains with them...Just check gross income and tax paid
manojsurya99 said:
b. Like wise, if I ask the question about MSMEs in India, do you think 5% of Indians have an answer?
FYI, Govt of India doesn't know how many GSTs are really active as of now (Because there are huge number of bogus companies that have come up to get input tax credit and other benefits through loop holes).
Click to expand...
Do you know govt stopped publishing MSME data post COVID
manojsurya99 said:
c. Now think of street vendors business. There is a rumour that India's street side vendors does business much more than the market cap of CNX NIFTY and BSE.
Click to expand...
Just count the no of cups in their dustbin and you can estimate how much money they made
manojsurya99 said:
In India, off late credit is sought by or given to companies who can show sure shot earns to repay. Hence knowing or understanding the economic activity is very very important, which is the reason why there is a department in the Government called Ministry of Statistics. They spend much more than this 1500 Cr. to give indices like IIP, CPI, WPI and so on. And still in India, it is easy to fake the documentation and get lending products.
This is just one step to curb that fraud. And it should be welcomed.
I'm still waiting for more details to understand the merits of the Project but currently happy and believe that it will work towards digitally fraud-free India in future (May be by 2050 or 2060).
Click to expand...
 
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I'm guessing they're just going to make a new App for PAN and upgrade servers.

Reasons:
1. PAN process is already quite fast. New PAN is generated in few hours and physical is delivered within a week depending on the location.
2. Process is already simple you just need Aadhaar card to apply new PAN. (It can be improved in UI/UX perspective).
3. Eco-friendly? There is ePAN.

Only thing I can think of is upgradation of servers, app and website.
 
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sunit123 said:
Wake up my friend....Visit any Jewelary shop and just observe for 15 mins, how many people are making payments in CASH and how many in white

My friend is doctor, her monthly income is more than 15 lakh...All cash receipts and no UPI/credit card accepted and tax payment is NIL..She does not use any UPI app/Bank Accounts/Zomato/Amazon etc...She has put her kids in school whose fees is less than PAN limit..
Click to expand...
Yeah my friend. But this country runs on paper📜 on which their income is less than taxable.
 
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sunit123 said:
Wake up my friend....Visit any Jewelary shop and just observe for 15 mins, how many people are making payments in CASH and how many in white

My friend is doctor, her monthly income is more than 15 lakh...All cash receipts and no UPI/credit card accepted and tax payment is NIL..She does not use any UPI app/Bank Accounts/Zomato/Amazon etc...She has put her kids in school whose fees is less than PAN limit..@
Click to expand...
@Swastik , @Vasuki , whats the point of running behind CCs when you can be this ?
 
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msankadi said:
🙁 And this is why my taxes keep going up and up every year...instead of all these bullshit projects why doesnt someone try and curtail tax evasion to ease the unfair(imo?) tax burden distribution
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This is more of social responsibility..here in India, majority of people feel very proud of achieving tax evasion !! Put it simply..

Government is made by people and by that definition, majority of people here are corrupt!!
In my tiniest observation, in general , here, there is only concept of "I", no concept of "we"
 
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Swastik said:
Well not everyone can earn 15L cash p.m. 😂🤣
Click to expand...
Remember Not Forgotten GIF

our amex plan. If not 15L pm atleast 10L pm we should target.
 
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SSV said:
This is more of social responsibility..here in India, majority of people feel very proud of achieving tax evasion !! Put it simply..

Government is made by people and by that definition, majority of people here are corrupt!!
In my tiniest observation, in general , here, there is only concept of "I", no concept of "we"
Click to expand...
Correct !!! govt. is a reflection of our mentality.
 
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sunit123 said:
Can u pls check how much tax they save through philanthropy which remains with them...Just check gross income and tax paid

Do you know govt stopped publishing MSME data post COVID

Just count the no of cups in their dustbin and you can estimate how much money they made
Click to expand...
My point is not about whether Tatas or Reliances of India are evading tax or anything as such, my point is it is easy to compute tax for such organisations because we have a visibility to it. But from Street-side vendors, there is no visibility of their income and hence taxing them is one of the toughest jobs.
I agree govt. is not sure how many Udyam/GSTs are inactive due to COVID and hence stopped publishing numbers but that is where building Digital Public Infrastructure becomes key. And hence I welcome this.
Be it upgrading their servers + adding new integrations or building new features for the purpose of security or for the agenda to make PAN sole point of contact for Business instead of LEI, UDYAM and so on, everything is good for India. Only question is what is the cost of it.
 
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SSV said:
This is more of social responsibility..here in India, majority of people feel very proud of achieving tax evasion !! Put it simply..

Government is made by people and by that definition, majority of people here are corrupt!!
In my tiniest observation, in general , here, there is only concept of "I", no concept of "we"
Click to expand...
Indians have more of an I feeling being for the amount of tax I pay, I expect some additional service to me from Government.
But because I get the same benefits as any other person who doesn't pay tax, that concept of we doesn't come into my mind. I know a friend of mine, who has a turnover of 2+ CR and easily 50+ lakhs income, doesn't pay any tax while I pay 10 lakhs tax for the same income (I also don't have a we feeling but I pay genuinely only because I consciously doesn't want to take escape route).
 
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