How PAN Simplifies Doing Business in India When Used as Common Identifier | EXPLAINED

Budget 2023: In the new move, PAN is likely to become the principle identity of any entity and will enable simpler processes for applying for clearances, registrations and permits. 

Written by: Manmath Nayak

Updated: February 1, 2023, 2:37 PM IST

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https://www.india.com/business/budget-2023-latest-news-1-february-2023-how-pan-as-common-identifier-simplify-doing-business-in-india-explained-gstin-tda-epfo-corporate-identification-number-5879057/ Copy

It is also expected that the single common identifier will simplify the procedures for investors.

Budget 2023 Latest Update: In the Budget 2023 presentation on Wednesday, Union Finance Minister Nirmala Sitharaman announced that Permanent Account Number (PAN) card will become the single common identifier for digital transactions. In the new move, PAN is likely to become the principle identity of any entity and will enable simpler processes for applying for clearances, registrations and permits.

It is also expected that the single common identifier will simplify the procedures for investors. Currently, there are multiple identifiers used at the Centre and state levels such as Goods and Services Tax Identification Number (GSTIN), Taxpayer Identification Number (TIN), Tax Deduction Account Number (TDA), Employees’ Provident Fund Organization (EPFO), Corporate Identification Number (CIN).

To enhance the ease of doing business, more than 39,000 compliances have been reduced, over 3,400 legal provisions have been decriminalised.

Sitharaman said the scope of documents available in DigiLocker will be enhanced to boost fintech services.

She added that using the DigiLocker service and Aadhaar as the foundational identity, this will be a one-stop solution for reconciling and updating the identity and address of individuals maintained by various government agencies, regulators, and regulated entities will be established using DigiLocker service and Aadhaar as foundational identity.

Speaking to Live Mint, Shravan Shetty, Managing Director, Primus Partners said that PAN usage will help meet 2 requirements to increase the PAN base while simplifying access to government systems. “For it to be successful last mile players helping get PAN numbers will be critical,” she said.

Adarsh Sharma, Managing Director, Primus Partners told the news portal that the biggest benefit of the national single window system using PAN as common identifier will be reducing duplicity of information submission to different ministries, reduce compliance burden, cut gestation period of projects, and promote ease of starting and doing business.