PAN 2.0: India introduces standardised tax identification number

12 toukokuun 2025

Digital transformation: PAN replaces TAN, TIN and other tax identification numbers

New Delhi, May 2025 – India is taking another step towards digital administration and tax transparency: with the PAN 2.0 project, the government under Prime Minister Narendra Modi wants to standardise the identification system for companies and taxpayers fundamentally. In future, the Permanent Account Number (PAN) will serve as the central tax identification number and replace previous numbers such as TAN (Tax Deduction and Collection Account Number) and TIN (Taxpayer Identification Number).

The project aims to simplify communication between companies and government agencies, reduce bureaucracy, and establish a standardised digital business identity.

What is the PAN 2.0 project?

As part of PAN 2.0, the PAN will be used not only for tax purposes but also as an overarching identifier for all digital systems of state authorities. This includes the commercial register, company formation, e-invoicing, and tax registration.

The Indian government is investing around INR 1,435 crore (approx. 160 million euros) in this large-scale digital project, which will be implemented within the next twelve months.

Key features of PAN 2.0

– Standardised online portal for all PAN and TAN-related services

– QR code integration on new and existing PAN cards for machine-readable identification

– Digital archiving system for secure processing and storage of personal data

– Completely paperless processes for application, updating and administration

– Free conversion of existing PAN cards to the new system

These measures are intended to increase user friendliness and transparency and simplify company compliance requirements.

Why PAN 2.0 is important

By introducing a standardised business identifier, India is improving its international position regarding Ease of Doing Business. The digital integration of various systems saves resources, speeds up business processes, and strengthens control over economic activities and tax flows.

The move is part of the Digital India initiative, which aims to digitise government services and make administration more efficient fully.

Legal Entity Identifier (LEI) remains relevant

Although PAN 2.0 standardises many functions, the Legal Entity Identifier (LEI) remains essential to the financial system – especially for companies with international business activities or large transaction volumes.

The Reserve Bank of India (RBI) already uses the LEI for:

– Financial transactions over ₹50 crore via RTGS or NEFT

– Companies with loan obligations over ₹5 crore (mandatory from April 2025)

The LEI is a globally valid 20-digit code that uniquely identifies legal entities in the financial market. In India, it is issued by lei.net.

LEI and PAN – two systems with different areas of application

While PAN now functions as a comprehensive business ID, the LEI is primarily used for regulatory purposes at a global level. There are currently no plans to integrate the two identifiers, but this could help simplify the regulatory environment in the future.

With PAN 2.0, India is consistently driving the digital standardisation of tax and business processes. The clear separation of PAN and LEI emphasises the importance of both identifiers in national and international contexts.