Budget 2023: PAN likely to get legal backing as Single Business ID

The Permanent Account Number (PAN) is likely to be legalised as the single business identification number in the upcoming Budget 2023, as per the recent report.

This move is intended to simplify the process of starting and running a business in the country, as well as to reduce the compliance burden on businesses.

Businesses in India are currently required to obtain several different identification numbers for a variety of purposes, such as filing taxes, obtaining a loan, or opening a bank account.

To streamline and increase efficiency, the PAN, which is already used for tax purposes, is now being considered the sole business identification number.

Individuals and entities are currently required to have a PAN, which is a 10-digit alphanumeric number issued by the Income Tax Department, in order to file tax returns and conduct financial transactions above a certain threshold. PAN is likely to be used as a single identifier for businesses across multiple areas of compliance with this new development.

This change is expected to benefit small and medium-sized businesses (SMEs) the most, as they frequently struggle to navigate complex compliance requirements and obtain multiple identification numbers. Having a single business identification number allows SMEs to save time and resources while focusing on growing their business.

Transparency and accountability in the Indian business environment are also anticipated to improve with the use of PAN as a single business identification number. It will be simpler to track and monitor adherence to various laws and regulations with a unique identification number for each business, which will limit the opportunity for tax evasion and other fraudulent activities.