PAN proposed to be used as common ID for all specified govt. agencies: Finance Minister.

Union Finance Minister, Nirmala Sitharaman on
Wednesday, in February 1, 2023 while presenting the Union Budget 2023 announced
that as part of the government’s move to ensure
ease of doing business, the business establishments are required to have a
Permanent Account Number (PAN).
According to the Finance Minister, the
Permanent Account Number (PAN) will be used as the common identifier for
all digital systems of specified government agencies, which will be facilitated
through a legal mandate.
The
FM further said this common identifier will simplify the Know Your Customer
(KYC) process by adopting a ‘risk-based’ instant approach instead of
‘one-size-fits-all’ approach. “The financial sector regulators will be
encouraged to have a KYC system fully amenable to meet the needs of digital
India,” the FM added.
Currently, there are several 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).
The use of a single common identifier PAN,
basic, common information and documents can easily fetched across systems. This
integrated system both at the state and central level departments will help
ease the burden of the users of submitting their documents all over again, it
will help them ensure their authenticity and also help in faster processing of
requests.
So there won’t be any hassle and the processes
involved in applying for clearances, registrations and permits will become
easier and simpler.
Apart from that, the Minister also stated that
a one-stop solution for reconciliation and updating of identity and address of
individuals maintained by various government agencies and regulators will also
be set up using DigiLocker service and Aadhaar as the foundational identity.
For instance, currently if one updates their
address in Aadhaar, the address doesn’t gets updated on their Income Tax portal
registration. But with DigiLocker, not just the Aadhaar is updated but the data
across multiple portals will be updated digitally.
The DigiLocker service is currently being used
to store and generate documents like PAN’s electronic version, Aadhar, degrees,
driver licenses and academic certificates. One must have an Aadhaar card to
open an DigiLocker account.
The FM also stated that for obviating the need
for separate submission of same information to different government agencies, a
system of ‘Unified Filing Process’ will be set up.
“Such filing of information or return in
simplified forms on a common portal, will be shared with other agencies as per
the filer’s choice,” she said.
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