PAN Card in Budget 2023: Union Budget 2023-24 will likely pave way for the legalisation of the permanent account number (PAN) as a single business identification, the Business Standard reported on January 12, citing a finance ministry official.
The government is reportedly mulling rolling out the legal and operational framework for the adoption of the PAN number.
This will apply to all businesses securing approvals, the report further adds.
The new provision will help investors save a lot of effort as they will no longer have to fill in multiple identifications details - there are 20 different IDs including GSTIN, TIN, and EPFO - for accessing the National Single Window System (NSWS) for project-related clearances and approvals.
The move is aimed to simplify the process of starting and running a business and to reduce the compliance burden on companies.
The Finance Act, 2023 may include an enabling provision or clause that will provide "legal underpinning" for PAN to be used as the principal identity of an entity, according to the report.
PAN is a ten-digit unique alphanumeric number issued by the Income Tax Department. PAN enables IT department to identify/ link all transactions of the PAN holder with the department.
Finance Minister Nirmala Sitharaman will present the Union Budget 2023-24 in Parliament on February 1, 2023.
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