Budget 2023: Your PAN Card has just been changed by Modi govt! Check impact
Updating your PAN Card through KYC could become a simplified task, thanks to a proposal by the Finance Minister N. Sitharaman proposed in the Union Budget 2023.
Highlighting the need of easing and simplifying the online KYC process, Finance Minister Nirmala Sitharaman announced a new proposal for PAN Card holders. With the mission of expanding Digital India mission, the Government will take this step-in order to enable a more efficient KYC process for all citizens in the country. This new initiative by the Modi government will see the PAN Card being used as a common identifier for all digital systems at government agencies.
Finance Minister Nirmala Sitharaman said, "For business establishments required to have Permanent Account Number, the PAN will be used as a common identifier for all Digital Systems of specified government agencies."
Currently, the KYC process involves a lot of documentation involving ID verification, face verification and document verification such as utility bills as proof of address, and biometric verification. Moreover, to update one's PAN Card, the holder needs to update the credentials at various places such as banks, income tax offices and more.
With this move, the process is expected to be simplified, making it simple to handle documents of the PAN Card holders for the Income Tax department and other government agencies. In the future, the holder could update the PAN Card details by updating the details at the digital locker, where the PAN Card is stored. The Finance Minister further said that this move could help boost business in the country by easing the process.
Speaking to Mint about the benefits of this proposal, SEBI registered tax and investment expert Jitendra Solanki said,” The proposal is going to make it simple for the Income Tax Department and other government agencies to manage a PAN cardholder's document. A PAN cardholder would be able to update the KYC through a single window being made available at the digital locker.”
Pankaj Mathpal, MD & CEO at Optima Money Managers also told Mint,” The budget proposal on PAN card to be used at a common identifier for all digital system at government agencies is expected to simplify the KYC process.”
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