India Advances Rs1435 Cr PAN 2.0 Project To Revamp Tax System

AI and digital technologies are significantly transforming tax systems worldwide, enhancing efficiency, compliance, and transparency. In the U.S., FTI Consulting helped an AI infrastructure company secure multimillion-dollar state and local tax incentives by integrating tax functions with business expansion strategies. India is advancing a seamless, technology-driven tax ecosystem with initiatives like the PAN 2.0 project led by LTIMindtree, aiming to streamline tax services and make PAN a common business identifier. Indian tax authorities are also leveraging digital tools such as the Annual Information Statement and Faceless Assessment Scheme to simplify filing and boost collections, inspiring other emerging economies. The UK is preparing for mandatory digital tax reporting under the Making Tax Digital program, starting April 2026, requiring businesses to adopt compatible software for quarterly and annual digital submissions. Experts in India emphasize that AI will revolutionize tax advisory and legal practices by improving efficiency, client management, risk identification, and cybersecurity through advanced data analysis.