PAN 2.0: Everything You Need to Know – Do You Need a New PAN Card?

The Central Government has introduced the PAN 2.0 Project, an initiative by the Income Tax Department (ITD) to modernise and digitise the current Permanent Account Number (PAN) system. Approved by the Cabinet Committee on Economic Affairs (CCEA), led by Prime Minister Narendra Modi, the project aims to create a unified and user-friendly system for all PAN and TAN-related services.

What is PAN 2.0?

The PAN 2.0 Project is an e-Governance initiative to enhance taxpayer registration services. It focuses on improving the quality and efficiency of PAN-related services using advanced technology. By consolidating the current platforms, the project aims to simplify processes for PAN and TAN-related activities, offering services like application, updates, corrections, Aadhaar-PAN linking, and online PAN validation.

Key Features of PAN 2.0

• Unified Platform: All PAN and TAN-related services will now be hosted on a single, centralised portal.
• Paperless Process: The system will be eco-friendly, reducing paperwork and promoting a fully digital process.
• Free Services: PAN allotment, updates, and corrections will be free of charge, and e-PAN will be sent to your registered email address.
• Enhanced Security: Personal data will be protected with advanced security measures, including a PAN Data Vault.
• QR Code: The QR code feature on PAN cards, introduced in 2017, will be enhanced for better validation of PAN details.

Frequently Asked Questions (FAQs) on the PAN 2.0 Project

1. What is PAN 2.0?

PAN 2.0 is an e-Governance project by the Income Tax Department (ITD) aimed at improving PAN (Permanent Account Number) services. This project integrates various PAN-related functions into a single platform and enhances the process using modern technology. It also merges services related to TAN (Tax Deduction and Collection Account Number) and provides an online PAN authentication service for financial institutions, government bodies, and other user agencies.

2. How is PAN 2.0 different from the current setup?

• Unified Platform: Currently, PAN services are spread across three different portals (e-Filing, UTIITSL, and Protean e-Gov). PAN 2.0 will consolidate these into one unified ITD portal, providing a smoother experience.
• Paperless Process: PAN 2.0 ensures a complete online, paperless process for services like allotment, updates, corrections, and more.
• Taxpayer Benefits: PAN updates and corrections will be free, while applicants requesting a physical PAN card will pay a nominal fee (Rs. 50 for domestic, Rs. 15 + postal charges for international delivery).

3. Do existing PAN cardholders need to apply for a new PAN?

Existing PAN cardholders do not need to apply for a new PAN. Under the PAN 2.0 system, the PAN number will remain the same.

4. Can I update or correct my PAN details like name, address, or spelling?

Yes, PAN holders can update their details, including email, phone number, address, and demographic information (name, date of birth) free of cost under PAN 2.0. Until the launch of PAN 2.0, online facilities for Aadhaar-based updates will be available at no cost. Other corrections can be done using the current online process for a fee.

5. Will my existing PAN card be changed under PAN 2.0?

No, your current PAN card remains valid. It will only be changed if you request an update or correction.

6. How will PAN cards be delivered if addresses are outdated?

No new PAN card will be sent unless an update is requested. PAN holders can update their address for free using Aadhaar-based online services. Updated addresses will be reflected in the PAN database.

7. Will older PAN cards continue to work if they do not have a QR code?

Yes, older PAN cards will continue to be valid. PAN cards issued since 2017-18 have a QR code, which is being enhanced under PAN 2.0. You can apply for a new one if you have an older card without a QR code.

8. What is the Common Business Identifier for businesses?

The Union Budget 2023 introduced the concept of a “Common Business Identifier,” where the PAN will serve as the common identifier for businesses interacting with various government agencies.

9. Will the Common Business Identifier replace PAN?

No, PAN will continue to function as the Common Business Identifier for business-related activities.

10. What is the “Unified Portal” in PAN 2.0?

The Unified Portal will consolidate all PAN and TAN-related services into one platform, simplifying processes like PAN allotment, updates, corrections, online validation, and e-PAN requests, among others.

11. How will extra PAN cards be identified and removed?

It is illegal to hold more than one PAN. If someone holds multiple PANs, they must report it to their Assessing Officer for deactivation of the duplicate. PAN 2.0 has improved systems to detect duplicate PAN requests and will help resolve such issues effectively.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.