PAN Takes the Lead: Union Budget Legalizes PAN as Single Business ID!
The Indian government has taken a major step towards simplifying the business identification process by legalizing the Permanent Account Number (PAN) as a single business identifier in the Union Budget 2023-24. The Finance Act, 2023 includes a provision that gives legal backing to the use of PAN as the primary identity of any entity.
This move will allow businesses to use PAN as the sole unique identifier when entering the national single window system to obtain various clearances and approvals from central and state departments.
PAN, a 10-digit alphanumeric number issued by the Income Tax Department, serves as a link between the taxpayer and the IT department by enabling the department to track all transactions of the PAN holder.
Currently, there are over 13 different business IDs, including EPFO, ESIC, GSTN, TIN, TAN, and PAN, which are used for various government approvals. This new regulation will apply to all businesses seeking approvals.