Budget 2023: PAN Card may be used as a SINGLE business ID; Deets inside

New Delhi: A legal foundation for making the Permanent Account Number (PAN) the exclusive corporate identity for all processes may be introduced in the 2023 budget. According to The Business Standard, Budget 2023 may include a provision that would allow a person or entity to link their PAN card with any other existing identifications they may have in order to simplify procedures. Investors will probably gain from this since they won't need to provide numerous forms of identification to the National Single Window System for project-related clearance and approvals.

Both at the state and federal levels, there are currently at least 20 different IDs. These include the 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), and others.

According to a senior finance ministry official quoted by The Business Standard, the Finance Act, 2023 may include an enabling provision or clause that will provide "legal underpinning" for PAN to be used as the principal identity of an entity.

This action will be in line with suggestions to make conducting business easier. A working committee under the Ministry of Finance, led by an extra secretary (revenue), had published its report at the end of December, recommending that this change be implemented gradually.

According to the article, agencies will have a year to adopt PAN as the principal identification for all types of clearances, registrations, permits, etc. Departments will be allowed up to a year to implement the changes.