In a significant move, the Government likely to announce adopting the permanent account number ( PAN ) as a single business identification According to the report, that cites a senior finance ministry official. The announcement is expected to be made by the Finance Minister Nirmala Sitharaman during the pronouncement of Budget 2023.
An enabling provision or clause may be introduced in the Finance Act, 2023, ensuring the “legal backing” for PAN being used as the primary identifier of an entity, reports said.
The provision will also ensure the mapping of PAN of an entity with multiple existing identifications. Accordingly, it will be notified under various central and state legislations, said the report, adding that currently, there are about 20 different identifiers at both the central and state levels.
These include the Goods and Services Tax Identification Number (GSTIN), Taxpayer Identification Number, Tax Deduction Account Number, Employees’ Provident Fund Organisation, Corporate Identification Number and so on.
The move will be in line with the recommendation of the working group, headed by an additional secretary (revenue) under the Ministry of Finance.
According to the working group, the move should be implemented in a phased manner, starting with central departments, such as GSTIN, the report said.
The departments will be given a year to map and adopt PAN as the sole identity for all kinds of clearances, registration, licences, etc, it added.
“Each state and central government body may be asked to update its system to ensure PAN is used as a common identification (ID) to access its services,” the official was quoted as saying.
Meanwhile, the last date to link the PAN with the aadhaar card is ending on 31st March 2023.
“As per Income-tax Act, 1961, it is mandatory for all PAN holders, who do not fall under the exempt category, to link their PAN with Aadhaar before 31.3.2023. From 1.04.2023, the unlinked PAN shall become inoperative. Link it before it’s too late. Don’t delay, link it today!,” the income tax department said in a recent statement.
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