The government has awarded a tax card upgrade project to LTIMindtree, as per sources. They said that the project, PAN 2.0 Project of Income Tax Department, is expected to go live in 18 months. LTIMindtree won the project after a successful bidding process. 

The PAN 2.0 project is aimed to simplify the PAN/TAN processes to improve the quality of service, ensure faster service delivery and improve grievance redressal mechanisms. It will handle comprehensively matters related to PAN and TAN, including allotment, updates/corrections, Aadhaar-PAN linking, re-issuance requests, online PAN validation etc. as a one-stop platform. 

The government had reportedly received four bids for the process.

Meanwhile, shares of LTIMindtree settled 1.42 per cent higher at Rs 5,088.25 on Monday. At this closing value, the stock has lost 10.33 per cent year-to-date (YTD).

WHAT ARE PAN AND TAN? 

PAN is the Permanent Account Number, while TAN is the Tax Deduction and Collection Account Number. Both PAN and TAN are 10-digit alphanumeric numbers. 

A PAN card is issued to all taxpayers and non=taxpayers in the country, while a TAN is issued to whoever deducts or collects taxes under Section 203A of the Indian Income Tax Act of 1961. 

PAN is required for all financial transactions. While it is mostly used for income tax purposes, it is also accepted as an identity proof of the individual. It is also used during buying property, cars, or other similar assets. Meanwhile, TAN is important for TDS returns, payments and challans. Once a TAN is obtained, businesses must file TDS quarterly. 

Individuals with taxable income, student, non-taxpayers can all apply for the PAN, while TAN is required of central or state government and local authorities, companies, branches and divisions of a company, firms, associations, trusts and HUFs, sole proprietorships and partnerships.