The Cabinet Committee on Economic Affairs (CCEA) has approved the Income Tax Department’s Permanent Account Number (PAN) 2.0 Project. This project aims to streamline and modernise the process of issuing and managing PAN and TAN, making it more user-friendly and efficient. In line with the Budget 2023 announcement, the government has decided to make PAN the “common business identifier” for all digital systems of specified govt agencies. Although it is illegal to have more than one PAN, there are several entities and individuals, who violate the law and the government is hoping that once the project is rolled out, it will be easier to check such instances. Currently there is a database of 78 crore PANs and 73.3 lakh TANs in the country. Here’s all you need to know about the PAN Card 2.0.
What is PAN 2.0
PAN 2.0 is a significant upgrade to India’s Permanent Account Number (PAN) system. This initiative aims to modernize the PAN system by introducing a unified digital platform. It will streamline PAN-related services, enhance security, and improve overall taxpayer experience. Currently, PAN-related services are spread across three different platforms: the e-Filing Portal, UTIITSL Portal, and Protean e-Gov Portal. With the implementation of PAN 2.0, all these services will be integrated into a single, unified portal. This one-stop platform will handle comprehensively issues/matters related to PAN and TAN, including application, updates, corrections, Aadhaar-PAN linking, re-issuance requests, and even online PAN validation. By doing so, the Income Tax Department endeavours to simplify processes, eliminate delays, and improve grievance redressal mechanisms.
What is the purpose of QR code on the new PAN card
The QR code helps in validating the PAN and PAN details. Incidentally, the QR code is not a new feature. QR codes have been incorporated in the PAN cards since 2017-18. The same will be continued under the PAN 2.0 project with enhancements (dynamic QR code which will display the latest data present in the 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 eco-system as well as in the PAN 2.0.
What is the data that can be accessed by scanning QR code on a PAN card
On reading through the reader application, complete details, i.e., photo, signature, Name, Father’s Name / Mother’s Name and Date of Birth is displayed.
Do I need to apply for the new PAN card
No, you do not need to apply for a new PAN card. Your existing PAN card will remain valid. Your existing PAN card will remain valid under PAN 2.0 project and you will automatically receive an electronic version of the card in your mail ID, without having to apply for it.
What is the fees if want to upgrade to new PAN card
There are no fees. You can opt to upgrade your PAN card to the new design with a QR code at no additional cost. But those seeking a physical card, however, will have to apply and pay Rs 50 for it if they live within the country.
Will my old PAN card become invalid
No, your old PAN card will not become invalid unless it is not linked to your Aadhaar number. The absence of a QR code on your PAN card will not affect its validity.
Why is the government upgrading the PAN system
The government aims to make the PAN system more efficient, secure, and user-friendly. By modernizing the system, the government hopes to improve tax compliance and reduce administrative burdens.
What about the people holding more than one PAN card
As per the provisions of Income-Tax Act, 1961, no person can hold more than one PAN. In case a person holds more than one PAN, he/she is obliged to bring it to the notice of the Jurisdictional Assessing officer and get the additional PAN deleted/de-activated. In the PAN 2.0, with the improved systems logic for identification of potential duplicate requests for PAN and centralized and enhanced mechanism for resolving the duplicates would minimize the instances of one person holding more than one PAN.