Context:
The Income Tax Department has awarded LTIMindtree Ltd the contract for upgrading India’s PAN and TAN management infrastructure under the PAN 2.0 Project, a significant leap in digitizing public tax services. The project was approved by the Cabinet Committee on Economic Affairs (CCEA) in November 2024 and aligns with the Digital India mission.
What is PAN 2.0?
PAN 2.0 is a next-generation technology upgrade that will modernize and secure the issuance, management, and grievance redressal systems for:
- Permanent Account Number (PAN) – PAN (Permanent Account Number) is a 10-character alphanumeric identifier issued by the Income Tax Department of India to individuals, companies, and other entities. It is essential for tracking financial transactions and ensuring tax compliance under the Income Tax Act, 1961.
- Tax Deduction and Collection Account Number (TAN) – TAN (Tax Deduction and Collection Account Number) is a 10-digit alphanumeric number issued by the Income Tax Department of India to entities responsible for deducting or collecting tax at source (TDS/TCS) under the Income Tax Act, 1961.
Key Features and Objectives
- Eco-friendly and paperless systems
- Faster and secure digital issuance of PAN and TAN
- Improved public grievance redressal mechanisms
- Seamless interoperability with other government systems, positioning PAN as a universal digital identifier
