PAN 2.0: A Revolutionary Upgrade to the PAN Ecosystem

26 Nov 2024
sneha
AADHAR, PAN
Comments Off on PAN 2.0: A Revolutionary Upgrade to the PAN Ecosystem

PAN 2.0: A Revolutionary Upgrade to the PAN Ecosystem

In a major step towards enhancing India’s digital infrastructure, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the PAN 2.0 Project for the Income Tax Department. With a financial outlay of ₹1,435 crore, this initiative aims to re-engineer taxpayer registration services through advanced technology, aligning with the vision of Digital India.

Union Information and Broadcasting Minister Ashwini Vaishnaw shared that the project will offer a free-of-cost upgrade to PAN Cards, introducing QR codes for improved usability and security.

What is the PAN 2.0 Project?

The PAN 2.0 Project represents a transformation of the existing PAN/TAN 1.0 ecosystem. It consolidates core and non-core activities, introduces enhanced features, and redefines the taxpayer experience.

Key objectives include:

Technology-Driven Transformation: Overhauling the PAN issuance and verification systems to deliver a seamless digital experience.
Enhanced Service Delivery: Faster, eco-friendly, and higher-quality services for taxpayers.
Centralized Data Consistency: Establishing a Single Source of Truth for reliable and uniform information across systems.
Optimized Infrastructure: Ensuring cost-effectiveness, security, and agility in operations.

Core Features of PAN 2.0

QR Code Integration:
- PAN cards will feature QR codes, making them easier to validate and use across digital platforms.
Unified and Paperless Processes:
- A single, streamlined portal will simplify PAN-related services, reducing paperwork and expediting service delivery.
Enhanced Grievance Redressal:
- A robust, user-friendly system will address taxpayer issues promptly and efficiently.
Eco-Friendly Operations:
- By digitizing processes, the project aims to minimize environmental impact.

Benefits of the Upgrade

Ease of Access: Taxpayers will experience faster, more convenient service.
Seamless Integration: PAN will function as a common identifier for specified government agencies, aligning with the Digital India initiative.
Data Security: Enhanced systems will ensure the safety of taxpayer information.
Cost Optimization: Advanced infrastructure will reduce operational costs.

Frequently Asked Questions

1. Do I need a new PAN card?

No, your current PAN card will remain valid. The upgrades, including the addition of QR codes, will be applied automatically.

2. Will the upgrades cost anything?

No, the upgrade is entirely free of charge for taxpayers.

3. What is a PAN card?

The Permanent Account Number (PAN) is a unique 10-character alphanumeric identifier issued by the Income Tax Department. It links individuals and entities with their tax-related transactions and communications, serving as a crucial document for financial activities in India.

Read More: Key Changes in GST Annual Return for FY 2023-24: A Guide to Filing Without Errors

PAN 2.0: A Step Towards Digital India

This project underscores the government’s commitment to digital transformation, eco-friendly initiatives, and taxpayer convenience. By integrating advanced technology into the PAN system, India takes another leap towards creating a seamless and secure digital ecosystem for its citizens.

The PAN 2.0 upgrade is not just a technological enhancement—it’s a vision for the future of governance, bridging convenience, security, and sustainability.

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Income Tax Department Releases Step-by-Step Guide to Link Aadhaar and PAN to Prevent Higher TDS

30 May 2024
sneha
AADHAR, Income Tax, Tax Planning, Tax Update
Comments Off on Income Tax Department Releases Step-by-Step Guide to Link Aadhaar and PAN to Prevent Higher TDS

Income Tax Department Releases Step-by-Step Guide to Link Aadhaar and PAN to Prevent Higher TDS

The Income Tax Department released a comprehensive guide that provides step-by-step directions for individuals to link their Permanent Account Number (PAN) with their Aadhaar number. The goal of this program is to make the process easier for taxpayers and stop higher Tax Deducted at Source (TDS) rates from being deducted.

Taxpayers can avoid paying higher TDS rates on a variety of financial activities and income sources by connecting their PAN and Aadhaar.

Attention, Taxpayers! The income tax department wrote on May 29 on social media site X, “Remember to link your PAN with your Aadhaar before May 31st, 2024, to avail the benefits of CBDT Circular No.6/2024 dtd 23rd April 2024.”

Steps to Link Your PAN with Aadhaar

1) Visit the e-Filing Portal Home page and click on ‘Link Aadhaar’ in the Quick Links section, or log into the e-Filing portal and click on ‘Link Aadhaar’ in the Profile section.

2) Enter your PAN and Aadhaar Number.

3) Click on ‘Continue’ to Pay Through e-Pay Tax.

4) Enter your mobile number to receive OTP.

5) After OTP verification, you will be redirected to the e-Pay Tax page.

6) Click on ‘Proceed’.

7) Select the relevant Assessment Year and Type of Payment as ‘Other Receipts’ (500) and click ‘Continue’.

8) After successful payment, revisit the ‘ Link Aadhaar’ page.

9) Once the payment details are verified, click ‘continue’ to submit the PAN-Aadhaar link request.

According to the CBDT circular dated April 23, 2024, following the notification substituting rule 114AAA of the Income-tax Rules, 1962:

If a person fails to link their Aadhaar with PAN as per section 139AAA of the Income-tax Act, 1961, their PAN will become inoperative.
Tax refunds will not be processed.
No interest will be payable on tax refunds for the period when the PAN is inoperative.
Tax will be deducted at a higher rate under Chapter XVII-B as per section 206AA.
Tax will be collected at a higher rate under Chapter XVII-BB as per section 206CC.

Why is PAN-Aadhaar linking important?

Your PAN will become inoperative if it is not linked with Aadhaar.
Tax refunds will not be processed.
No interest will be payable on tax refunds.
Tax will be deducted at a higher rate.
Tax will be collected at a higher rate as per the provisions of section 206CC.

Read More: 9 Major Transactions to Watch Out For to Avoid Income Tax Scrutiny

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Deadline for PAN-Aadhaar Linking – May 31, 2024

25 Apr 2024
sneha
AADHAR
Comments Off on Deadline for PAN-Aadhaar Linking – May 31, 2024

Deadline for PAN-Aadhaar Linking - May 31, 2024

Important Update for Those Who Haven’t Linked Their PAN with Aadhaar Card Yet. Failure to Link PAN with Aadhaar by May 31st Could Result in Doubled TDS Deductions. The Income Tax Department has announced that linking PAN with Aadhaar by this deadline will prevent any adverse actions. However, biometric linking is essential to avoid increased deduction rates according to income tax rules.

This decision is intended to assist taxpayers whose PANs were deactivated due to non-linkage with Aadhaar.

Official data as of January 29, 2024, shows that approximately 11.48 crore PANs were not linked with Aadhaar. Responding in Lok Sabha, Minister of State for Finance Pankaj Chaudhary revealed that the government levied a fine of Rs 601.97 crore for delays in linking PAN with Aadhaar between July 1, 2023, and January 31, 2024.

How to Link PAN with Aadhaar

Linking Via the Income-Tax Department Portal

Step 1: Go to incometaxindiaefiling.gov.in, the e-filing portal of the I-T department.

Step 2: Click on the ‘Link Aadhaar’ option under the ‘Quick Links’ section of the webpage.

Step 3: This will redirect you to a new page where the PAN number, Aadhaar number and other required details like your name need to be entered.

Linking Via SMS

Step 1: Dial 567678 or 56161 on a mobile device to send an SMS. The format should be UIDPAN (10-digit PAN card number), 12-digit Aadhaar card number, and space.

Step 2: Following that, an SMS will inform you of the PAN-Aadhaar link status. The Aadhaar and PAN will only be linked if the taxpayer’s date of birth matches both documents.

Here are the steps to check the status of linking your PAN with Aadhaar on the official income tax department website:

i) Visit the official website of the Income Tax Department at www.incometax.gov.in

ii) Navigate to the Quick Links section and locate the option for checking ‘Link Aadhaar Status’. Click on this option.

Read More: Understanding Form 10F: Purpose, Scope, and Mandatory Conditions

iii) A new screen will appear on your computer or mobile device. Enter your PAN and Aadhaar numbers into the designated fields.

iv) Once you have entered the required details, click on ‘View Link Aadhaar Status’.

v) The status of your Aadhaar-PAN linkage will be displayed on the page. For example, it will indicate whether your PAN (PAN Aadhaar) is linked to your Aadhaar number (Aadhaar Number) if they are linked.

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