PAN 2.0 – Do You Need to Get a New Card?

The Indian Income Tax Department is working to update the Permanent Account Number (PAN) system through the PAN 2.0 Project.

How does the PAN 2.0 Project combine TAN, TIN, and other company IDs into a single system, and what is it?

Making the PAN a “common business identifier” for all digital systems of designated government entities is the goal of the ₹1,435 crore PAN 2.0 Project. This would enable paperless operations and better grievance redressal methods by creating a single digital platform for all PAN-related services. By introducing PAN cards with QR codes, the initiative will improve security and make it simpler to validate PAN information.

As was previously mentioned, a single identity would be more advantageous than several identifying numbers. Consolidating efforts to establish the PAN as the standard business identification is the project’s goal. This method will combine PAN, TAN, and TIN.

Motives behind PAN 2.0 Implementation

Ashwini Vaishnaw, the minister of broadcasting, claims that the industry has repeatedly asked for a uniform corporate identification in order to streamline communications with different government departments. Using PAN as the universal identification, the PAN 2.0 initiative aims to meet this demand.

Features & Advantages of PAN 2.0

The new method offers a number of advantages:

• Unified Portal: All PAN-related services will be offered on a single web platform.
• Security Upgrades: PAN Data Vaults and QR codes will improve cybersecurity.
• Faster Services: With an enhanced grievance redressal mechanism, the initiative seeks to provide taxpayer services in a timely, economical, and environmentally responsible manner.
• Improved Consistency: Data consistency will be enhanced using a “single source of truth” method.
• Validation of QR Codes: Integrated into PAN cards from 2017–2018, the QR code facilitates the validation of the PAN and its information via a particular reader application.
• Reducing Duplicate PANs: The new system’s sophisticated logic will detect and reduce duplicate PANs. Multiple PAN holders must deactivate their extras in accordance with the 1961 Income-tax Act.

How Do Businesses Get Affected by the New System?

Because the PAN will be used as a common identity across government platforms, businesses that are obliged to get one will have to do less paperwork. Coordination with other entities, such as governmental departments and financial institutions, would be enhanced as a result.

• No, the PAN 2.0 Project does not require current PAN holders to apply for a new PAN. Requesting a new PAN card is not required, however it is an option for holders of older cards lacking QR codes. According to the government, all current PAN cards would continue to be valid following the upgrade.
• As part of a paperless initiative, the improved electronic PAN (e-PAN) will be issued for free to users’ registered email addresses. A special request must be made for people who need a real PAN card, and there will be a price of Rs 50 for domestic delivery and Rs 15 plus actual India Post charges for overseas delivery. Upgrading to a new PAN card is not required; it will only be granted upon request from the PAN holder.
• Yes, even in the absence of a QR code, previous PAN cards will remain valid. Older cards will continue to work as the PAN 2.0 Project upgrades the PAN system and introduces cards with QR codes.
• Once the PAN 2.0 system is operational, current PAN cardholders will have the opportunity to update or amend their information, including name, address, and demographics, at no additional cost.
• Users can alter their email address and cellphone number for free using an Aadhaar-based web tool until the new system is implemented. Portals on the internet can be used for this.
• Unless you ordered a physical delivery of the new PAN card, taxpayers will not be charged for PAN services under PAN 2.0. New PAN cards with improved features, such as a QR code, are part of this.
• One important component of PAN 2.0 is the Common Business Identifier (CBI). Establishing a single identify that companies will use on all government platforms is the aim. By cutting down on paperwork and enhancing cooperation, this is meant to make dealings with organizations such as governmental departments and financial institutions easier. As the CBI, the PAN itself will be utilized.

Present Situation and Application Procedure

98% of the approximately 78 crore PANs that have been issued thus far belong to people. The specifics of the application procedure and the schedule for the full implementation of PAN 2.0 have not yet been provided by the Income Tax Department.