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Till the time the PAN 2.0 project is rolled-out, PAN holders can avail of the Aadhaar-based online facility for update/correction.
Currently, about 78 crore PANs have been issued, of which 98 per cent are to individuals.
PAN 2.0 Project Details: The government has approved a Rs 1,435-crore project to revamp the existing system of issuing permanent account numbers under which PAN cards with QR Code feature will be given.
PAN: A Unique Identification for Taxpayers
PAN is a unique 10-digit alphanumeric number issued by the Income Tax Department to taxpayers.
Government Approval for PAN 2.0
The project was approved by the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Monday.
Existing PAN Holders Need to Apply Afresh Under PAN 2.0?
Existing PAN card holders are not required to apply for a new one under the upgraded PAN 2.0 system that is primarily aimed at introducing a ‘common identifier’ for all business-related activities, the Income Tax Department said on Tuesday.
Key Features of PAN 2.0
“With existing PAN database of 78 crore PANs and 73.28 lakh TANs, the project addresses the requirements of taxpayers, focusing on consolidation of multiple platforms/portals and efficient services to PAN/TAN holders,” Central Board of Direct Taxes (CBDT) said in a release on Tuesday.
Will You Have To Pay For PAN 2.0?
PAN cards with a QR Code feature will be issued free of cost to taxpayers.
Government’s Vision for PAN 2.0
Information and Broadcasting Minister Ashwini Vaishnaw said businesses have been demanding a common business identifier as against the current 3-4 different identifiers.
The present PAN with individuals and businesses will remain valid and there will be no need to change the number.
Technology-Driven Transformation of PAN Services
PAN 2.0 Project enables technology-driven transformation of taxpayer registration services and is aimed at ease of access and speedy service delivery with improved quality.
The second generation PAN is an e-governance project for re-engineering the business processes of taxpayer registration services through technology-driven transformation of PAN/TAN services for the enhanced digital experience of the taxpayers.
The Tax Deduction and Collection Account Number (TAN)-related services are also merged with this project.
CBDT FAQs Clarify PAN 2.0 Details
In an FAQ, the CBDT said, “The existing PAN card holders are not required to apply for a new PAN under the upgraded system (PAN 2.0).”
The PAN card will not be changed unless the PAN holders want any update/correction, it added.
“The existing valid PAN cards will continue to be valid under PAN 2.0,” FAQ said.
QR Code Feature in PAN Cards
CBDT also clarified that the “QR code is not a new feature, and it has been incorporated in PAN cards since 2017-18″ and the same will be continued under PAN 2.0 project with enhancements (dynamic QR code which will display latest data present in PAN database).
“PAN holders having an old PAN card without QR code have an option to apply for a new card with QR code in existing PAN 1.0 ecosystem as well as in the PAN 2.0,” CBDT said.
The QR code helps in validating the PAN and PAN details.
Presently, a specific QR reader application is available for verification of QR code details.
On scanning of the QR code, complete details — photo, signature, name, father’s name/mother’s name and date of birth — is displayed.
How PAN 2.0 Will Improve PAN Services
On how PAN 2.0 will be different from the existing setup, the FAQ said it will lead to the integration of platforms.
Presently, PAN-related services are hosted on three different portals — e-filing Portal, UTIITSL Portal, and Protean e-Gov Portal.
In the PAN 2.0 Project, all PAN/TAN-related services will be hosted on a single unified portal of the ITD.
“The said portal will host all end-to-end services related to PAN and TAN like allotment, updation, correction, Online PAN Validation (OPV), Know your AO, Aadhaar-PAN linking, verify your PAN, request for e-PAN, request for re-print of PAN card, etc,” as per the FAQ.
Paperless and Free Services Under PAN 2.0
PAN 2.0 will also make comprehensive use of technology for paperless processes.
Further, allotment/updation/correction of PAN will be done free of cost and e-PAN will be sent to the registered email id.
“For physical PAN card, the applicant has to make a request along with the prescribed fee of Rs 50 (domestic). For delivery of card outside India, Rs 15+ India post charges at actuals will be charged to the applicant,” CBDT’s FAQ added.
Corrections and Updates in PAN 2.0
It also said if existing PAN holders want to make any correction/updating of their existing PAN details such as email, mobile or address or demographic details such as name, date of birth, they can do so at free of cost after the PAN 2.0 Project commences.
Till the time the PAN 2.0 project is rolled-out, PAN holders can avail of the Aadhaar-based online facility for update/correction.
The PAN 2.0 project is likely to be rolled out next year.
Fighting Duplicate PANs Under PAN 2.0
The CBDT also said PAN 2.0, with the improved systems logic for identification of potential duplicate requests for PAN and centralised and enhanced mechanism for resolving the duplicates will minimise instances of one person holding more than one PAN.
Government’s Plan for PAN as a Common Identifier
In the Union Budget 2023, the government had announced that for business establishments required to have a PAN, the PAN will be used as the common identifier for all digital systems of specified government agencies.
Under the project, the tax department is consolidating all processes related to PAN allotment/update and corrections.
PAN 2.0 and Government Agencies
Besides, PAN authentication/validation through online PAN validation service will be provided to user agencies such as financial institutions, banks, government agencies, central and state government departments.
Currently, about 78 crore PANs have been issued, of which 98 per cent are to individuals.
