As per the recent report, Permanent Account Number (PAN) is likely to get legal backing as a single business identification number in the upcoming Budget 2023.
The move aims to simplify the process of starting and operating a business in the country and reduce the compliance burden for businesses.
Currently, businesses in India are required to obtain several different identification numbers for various purposes, such as registering for taxes, obtaining loans or opening bank accounts.
PAN, which is already used for tax purposes, is now being treated as the sole business identification number to streamline the process and increase efficiency.
PAN, a 10-digit alphanumeric number issued by the Income Tax Department, is currently mandatory for individuals and entities to file tax returns and conduct financial transactions above a certain threshold. With this new development, PAN is likely to be used as a single identifier for businesses in various areas of compliance.
The move is expected to benefit small and medium-sized enterprises (SMEs) the most, as they often find it difficult to navigate complex compliance requirements and obtain multiple identification numbers. By having a single Business Identification Number, SMEs will be able to save time and resources, and focus on growing their business.
The use of PAN as a single business identification number is expected to improve transparency and accountability in the Indian business landscape. With a unique identification number for each business, it would be easier to track and monitor compliance with various laws and regulations, reducing the scope for tax evasion and other fraudulent activities.
frequently Asked question:
Q: What is PAN?
A: Permanent Account Number (PAN) is a 10-digit alphanumeric number issued by the Income Tax Department in India. Currently it is mandatory for individuals and entities to file tax returns and conduct financial transactions above a certain threshold.
Question: Why is the government considering making PAN a single business identification number?
A: To simplify the process of starting and operating a business in the country and reduce the compliance burden for businesses, the government is considering making PAN a single business identification number.