PAN to be used as common identifier for digital systems
- February 2, 2023
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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PAN to be used as common identifier for digital systems
Subject : Economy
Section : Fiscal Policy
Concept :
- Finance Minister Nirmala Sitharaman on Wednesday, February 1 said Permanent Account Number (PAN) will be used as a common identifier for all digital systems of specified government agencie
- The move would help in further promoting ease of doing business in the country.
- Significance
- PAN is a 10-digit alphanumeric number allotted by the income tax department to a person, firm or entity.
- PAN enables the department to link all transactions of the “person” with the department.
- These transactions include tax payments, TDS/TCS credits, returns of income, specified transactions, correspondence, and so on.
- PAN, thus, acts as an identifier for the “person” with the tax department.
- She also said that if MSMEs fail to execute contracts, 95 per cent of performance security will be returned to small businesses as part of Vivad Se Vishwas scheme.
Vivad Se Vishwas Scheme:
- The scheme provides for settlement of disputed tax, disputed interest, disputed penalty or disputed fees in relation to an assessment or reassessment order on payment of 100% of the disputed tax and 25% of the disputed penalty or interest or fee.
- The Direct Tax Vivad se Vishwas Act, 2020 was enacted in March 2020 to settle direct tax disputes locked up in various appellate forums.
- As many as 1.25 lakh cases, a quarter of all direct disputes, have opted for Vivad se Vishwas scheme, enabling settlement of Rs. 97,000 crore in tax demands.