- Date : 26/01/2023
- Read: 2 mins
A report claims the central government will roll out a detailed framework to adopt PAN as a single business ID for ease of doing business in India.
Budget 2023 Likely to Announce PAN as Single Business ID
Have you linked your PAN card with your Aadhar card yet? If not, do it right now. The last date to link your PAN with your Aadhaar card is March 31, 2023. You might be thinking, why give it such importance? Your PAN card will be inoperative unless done by the end of this financial year.
The importance of PAN cards will increase significantly in the coming days as the central government is mulling the idea of rolling out a detailed framework (both operational and legal) to adopt the PAN number. Like any other year before the budget, rumour mills are abuzz that the union government is all set to provide PAN with the needed legal backing for use as a single business identification.
On January 12, 2023, a Business Standard report cited a finance ministry official to claim that the upcoming Union Budget 2023-24 will legalise PAN (Permanent Account Number) as a single business ID. If the report is to be believed, the union government has already started formulating a detailed legal and operational framework to adopt the PAN number. The Business Standard report has further added that all businesses can use PAN as a single business ID for securing approvals.
Businesses, analysts, and experts believe that rolling out a single business ID will boost the ease of doing business in India.
To access NSWS (National Single Window System) for clearances and approvals of project(s), a business has to currently fill in around twenty different identification details such as:
- TIN (Taxpayer Identification Number)
- GSTIN (Goods and Services Tax Identification Number)
- EPFO (Employees' Provident Fund Organisation), and many more.
The government's reported move to make PAN a single business ID will make it easy for businesses to get started and run them easily. In fact, it will also decrease the compliance burden of businesses to a large extent.
Reports say that the Finance Act 2023 will likely include a clause or provision to provide "legal underpinning" to PAN. This will help businesses to use it as an entity's principal identity.
PAN stands for Permanent Account Number. The Income Tax Department issues this 10-digit unique alphanumeric number. This unique number helps the department identify and link all PAN ID transactions with the department.
On February 1, 2023, the Union Budget 2023-24 will be presented by the Union Finance Minister Nirmala Sitharaman.