PAN 2.0 Project

27.11.2024

PAN 2.0 Project

Why in the news?

The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister has given its approval for the PAN 2.0 Project.

About PAN 2.0 Project:

• It is an e-Governance project for re-engineering the business processes of taxpayer registration services through technology driven transformation of PAN/TAN services for enhanced digital experience of the taxpayers.
• This will be an upgrade of the current PAN/TAN 1.0 eco-system consolidating the core and non-core PAN/TAN activities as well as PAN validation service.
• It is a project of the Income Tax Department.
• The PAN 2.0 Project resonates with the vision of the Government enshrined in Digital India by enabling the use of PAN as Common Identifier for all digital systems of specified government agencies.
• The PAN 2.0 Project enables technology driven transformation of Taxpayer registration services and has significant benefits including:

○Ease of access and speedy service delivery with improved quality;

○Single Source of Truth and data consistency

○Eco-friendly processes and cost optimization; and

○Security and optimization of infrastructure for greater agility.

What is a Permanent Account Number (PAN)?

• A PAN is an alphanumeric identifier consisting of ten characters, issued by the Income Tax Department.
• It is provided to any "person" upon application or allocated directly by the department without a formal request.
• The Income Tax Department utilises PAN to monitor and connect all transactions associated with an individual. This includes various activities such as tax payments, TDS/TCS credits, income returns, specific transactions, and official communications.

                                                       Source: Indian Express

PAN 2.0 Project, recently in news, is a:

A.New financial mechanism launched during COP29 in Baku

B.World Bank project to fund India’s Tier-2 cities infrastructure

C.World Trade Organisation’s initiative to address the issue of trade barriers

D.A project initiated by the Income Tax Department of India

Answer  D