PAN 2.0: A Game-Changer For Indian Businesses

The new project PAN 2.0 of the Government of India promises to revolutionise doing business and being compliant. Therefore through the adoption of a single identifier, it is a goal of PAN 2.0 that the multiple identity numbers would be removed, and the smooth compliance process would commence. Due to this initiative, firms of all types are said to stand to gain in terms of efficiency while the government’s ability to monitor these firms will improve.

Also Read: PAN Card: About, Benefits, Importance, & Online PAN Application

What Is PAN 2.0 And Why Was It Introduced?

Enhanced PAN is the new development of the old PAN system which has been revised with a total grant of ₹1,435 crore. It brings a new coherent and easily understandable notion of a common business identifier to companies.

• Merges PAN, TAN, and TIN into one merely to simplify the government’s effort in tracking your number.

• Saves business organisations the rigmarole of dealing with numerous identity numbers.

• Applicable with the objectives of increasing compliance and decreasing administrative costs of tax obligations.

• And based on foreign models such as the Unique Business Identifier (UBI).

What Benefits Does PAN 2.0 Offer Businesses?

The PAN 2.0 programme aims to automate and streamline tax functions, upgrade the quality of services being offered, and increase compliance across the corporate world.

• IDEA for all requirements related to PAN/TAN such as its issuance, change request, and linking with Aadhaar number etc.

• Ignores the government databases to reduce paperwork and approval time.

• The over and under-sampled organisations will experience a decrease in their compliance expenses while their operations will also be made easier.

• Adds a feature of a live code to scan the applicants’ information on the go.

Also Read: The Aftermath: Managing Aadhaar And PAN Cards After Death!

How Will PAN 2.0 Address Current Challenges?

The project will eliminate formidable barriers like multiple identity numbers and compliance in silo arrays by providing an integrated and safeguarded system.

• Reduces more than 23 occasions of identity numbers such as the GSTN, CIN, TAN, etc.

• Build up a PAN data vault system to store and protect business data storage.

• Improves the security of information data and compliance with the laws on data policy.

• Serves as an authority on government-regulated licences and permits.

What Are Experts Saying About PAN 2.0?

PAN 2.0 is viewed by industries as a business reform since it makes operations easier and governments’ supervision easier as well.

Aseem Mowar, EY India:

• One example is when there is one version of the truth, it becomes easy and efficient in issues to do with tax.

Rishi Agrawal, TeamLease Regtech:

• PAN 2.0 meets India’s need for having a business equivalent of Aadhaar to comply with paperwork online.

Jatin Kumar, Felix Advisory:

• Dynamic QR codes help businesses and financial institutions with background cheques more than the previous ones.

Also Read: Save Yourself From PAN Card Scam and Fraud Online

What Are The Key Features Of PAN 2.0?

The enhancements of the new PAN 2.0 system also include the following new features of the system.

• A static QR code for QR code verification is swapped for a dynamic QR code for quick verification.

• PAN data vault system to maintain Business security from impending threats.

• Single-stop solution for all similar services like e-PAN, updation, validation etc.

• They offer integration with DigiLocker, making the document a paperless and tamper-proof document storage service.

What Are The Expected Impacts Of PAN 2.0?

It will enhance business flow, ease of doing business and de-bottlenecking of business processes as considered under the project.

• Simplified procedures especially for organisations and firms especially the SMEs.

• In this case, the interests are to improve the transparency and efficiency of the communication of the government.

• Quicker authorization and less paperwork over regulatory clearances.

• Stronger compliance environment with emphasis on the governance and accountability of the crime.

Conclusion

Like PAN, PAN 2.0 is a step in the right direction towards rationalising the compliance burden for businesses in India. It exposes a common business identifier that removes the obstacles and barriers to the business environment, enhances the efficiency of its operation, and creates a system of interaction in the digital business space. This is likely to usher greater benefits to enterprises from all sectors, optimising their performance, as well as reducing the burden of compliance.

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