Permanent Account Number is an alpha-numerical ten-character identification given by the Income Tax Department to every individual and business. This is the unique identification number for every taxpayer in India.
The composition of PAN includes
First three characters: a sequence of alphabetical characters used as classification
Fourth character: denotes the type of taxpayer, 'P' for an individual and 'C' for a company.
Fifth character: The first letter of surname or name of the entity.
Last five characters: A number string.
PAN is something which plays a very crucial role in doing most financial activities such as income tax filings, salary receptions, and large purchases.
Launch Of PAN 2.0:-
Recently, the Indian government announced launching PAN 2.0, which is a project to upgrade the existing PAN system. This project, with an investment of ₹1,435 crores, aims at making the process of acquiring and managing PANs simpler and digitalized. The Union Minister Ashwini Vaishnaw said that this new system will bring about several changes beneficial to citizens.
Key Features of PAN 2.0
There will be no requirement of fresh application. Existing PAN holders need not apply for a new PAN card. If you already possess a PAN, there is no extra cost for getting it reissued.
Introduction of QR Codes: New PAN cards will carry QR codes. This will ensure additional security and make verification easier.
Digital Format: The PAN card will no longer be a physical document; instead, it will be digitally available. The government is doing this as part of its broad digital push to reduce paper work.
Better Data Security: With increased digitalization, the government plans to enhance its cybersecurity measures so that sensitive information is protected.
Here is a simplified guide to apply for an e-PAN online and getting it directly in your email:-
1. Find Your PAN Issuer: First, check whether your PAN was issued by NSDL or UTIITSL. You can find this information on the back of your PAN card.
2. Applying for e-PAN through NSDL:
> Visit the NSDL e-PAN Portal: NSDL e-PAN Portal.
Fill in your PAN number, Aadhaar details for individuals and your date of birth.
After filling all the details check your details and then opt for an OTP receiving channel. Now enter your OTP within 10 minutes
The first three e-PAN applications made in the 30 days from PAN allotment are free of cost. Subsequent applications attract a charge of Rs 8.26, which includes GST.
Once you have paid, an e-PAN will be sent to you within 30 minutes.
3. In case the e-PAN is not received: In case of non-receipt of an e-PAN, send an email with your payment details to us at tininfo@proteantech.in. Alternatively, if you need an urgent answer, you may call our customer care numbers at 020 27218080 or 020 27218081.
Taxpayer Services:-
Your PAN would be free of cost for allotment, updation, and correction; the e-PAN would be sent to your email address registered with us. If you want a print PAN card, you must apply separately by paying Rs. 50 as domestic postage charge. For international post, you must pay Rs. 15 additionally along with the actual post charges of India Post.
Why is PAN Important:-
PAN is used as a monitoring tool for all financial transactions in India. This is how it works:
Tax Monitoring: The government keeps a check on all the financial transactions through PAN. If the declared income of a person does not match with his spending habits, then the tax department may further probe.
Loan Applications: Most of the banks check a person's PAN when applying for loans. This helps check his creditworthiness and his past borrowing history.
All these transactions will be PAN linked and will ensure the reduced scope of tax evasion so that every individual pays his part.
Future of PAN:-
In pursuit of the Government of India to make PAN 2.0 successful, it is trying to make taxation uniform as well as efficient while unifying financial identities in the life of citizens at ease.
Conclusion:-
Launch of PAN 2.0 is a great step towards a more digital and effective system of dealing with personal financial matters in India. As the government is investing in further development of technology, it can be sure that people will feel ease when it comes to the payment of tax and their other financial activities. In general terms, this article will come up to help all those making sense out of one's financial responsibility or preparing to take UPSC examinations who understand what PAN 2.0 means for themselves.