Budget 2023: Permanent Account Number (PAN) will be used for common identifier for all digital systems of specified government agencies, the Finance Minister announced on Wednesday as she presented the Union Budget 2023. The move would help in further promoting ease of doing business in the country. FULL COVERAGE
PAN is a 10-digit alphanumeric number allotted by the income tax department to a person, firm or entity.
She also said that if MSMEs fail to execute contract, 95 per cent of performance security will be returned to small business as part of Vivad Se Vishwas scheme.
Vivad Se Vishwas scheme provides for settlement of disputed tax, interests, penalty or fees in relation to an assessment or reassessment order on payment of 100 per cent of the disputed tax and 25 per cent of the disputed penalty or interest or fee.
She also said that Phase-III of e-courts will be launched.
State support mission of Niti Aayog will be continued for three years, the finance minister said.
For investors to reclaim unclaimed shares and unpaid dividends from the Investor Education and Protection Fund Authority with ease, an integrated IT portal is proposed to be established.
In addition, the KYC process will be simplified by adopting a 'risk-based' instead of 'one size fits all' approach. The financial sector regulators will also be encouraged to have a KYC system fully amenable to meet the needs of Digital India.
A one stop solution for reconciliation and updating of identity and address of individuals maintained by various government agencies, regulators and regulated entities will be established using DigiLocker service and Aadhaar as foundational identity, Sitharaman said.
For obviating the need for separate submission of same information to different government agencies, a system of 'Unified Filing Process' will be set-up. Such filing of information or return in simplified forms on a common portal, will be shared with other agencies as per filer's choice.
Abhishek Dev, CEO and Co-Founder, Epsilon Money Mart said simplifying of KYC, using PAN as common business identifier and enhanced use of Digi locker are all welcome steps towards important objectives of simplification of investment, taxation and better enhanced financial inclusion of individuals and businesses.
Milan Ganatra, CEO & Founder, 1SilverBullet said making a PAN, a unified document will take a long way. Secondly, introducing a digital locker for non-individuals is an extremely major step, allowing non-individuals to go fully digital which was a big challenge, i.e., from opening a bank account to corporate transacting no longer will be a hindrance.
(With inputs from PTI)
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