Till the roll-out of PAN 2.0 project, PAN holders can avail Aadhaar-based online facility for update/correction.
PAN 2.0 Project Details: Government to improve existing system of issuance of Permanent Account Number Rs. 1,435 crore project, under which PAN cards with QR code facility will be issued.
PAN: A unique identifier for taxpayers
PAN is a 10-digit unique alphanumeric number issued to taxpayers by the Income Tax Department.
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 do not need to apply for a new one under the upgraded PAN 2.0 system that is primarily aimed at presenting a ‘common identifier’ for all business-related activities, the Income Tax Department said on Tuesday.
Key Features of PAN 2.0
“With an existing PAN database of 78 crore PANs and 73.28 lakh TANs, the project addresses the needs of taxpayers, focusing on integration of multiple platforms/portals and efficient services to PAN/TAN holders,” the Central Board of Direct Taxes (CBDT) said. was A release on Tuesday.
Do you have to pay for PAN 2.0?
PAN card with QR code facility will be issued free of charge to taxpayers.
Government’s Vision for PAN 2.0
Information and Broadcasting Minister Ashwini Vaishnav said businesses are demanding a common business identifier against the current 3-4 different identifiers.
The existing PAN with individuals and businesses will be valid and there will be no need to change the number.
Technology driven transformation of PAN services
The PAN 2.0 project enables technology driven transformation in taxpayer enrollment services and aims at faster service delivery with flexibility and improved quality.
Second Generation PAN is an e-governance project for re-engineering the business processes of Taxpayer Enrollment Services through technology-based conversion of PAN/TAN services for enhanced digital experience of taxpayers.
Tax Deduction and Collection Account Number (TAN) related services have also been merged with this project.
The CBDT FAQ specifies the PAN 2.0 details
In an FAQ, the CBDT said, “Existing PAN card holders need not apply for a new PAN under the upgraded system (PAN 2.0).”
PAN card will not be changed unless PAN holders want any update/correction.
“The existing valid PAN cards will continue to be valid under PAN 2.0,” the FAQ said.
QR code facility in PAN cards
The CBDT also clarified that “QR code is not a new feature, and has been incorporated in PAN cards since 2017-18” and will be continued with enhancements under the PAN 2.0 project (a dynamic QR code that will display current data. PAN database).
“PAN holders having an old PAN card without a QR code have the option to apply for a new card with a QR code in the existing PAN 1.0 ecosystem as well as PAN 2.0,” the CBDT said.
QR code helps to validate PAN and PAN details.
Currently, there are specific QR reader apps available for checking QR code details.
On scanning the QR code, complete details – photo, signature, name, father’s name/mother’s name and date of birth – are displayed.
How PAN 2.0 will improve PAN services
On how PAN 2.0 will differ from the current setup, the FAQ said it will lead to integration of platforms.
Currently, 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 ITD.
“The said portal provides all end-to-end services related to PAN and TAN like allotment, update, correction, online PAN validation (OPV), know your AO, Aadhaar-PAN linking, verify your PAN, host request for e-PAN will do , request for reprint of PAN card, etc.,” according to the FAQ.
Paperless and free services under PAN 2.0
It will also make extensive use of PAN 2.0 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 mail id.
“For a physical PAN card, the applicant has to make a request with a prescribed fee of Rs 50 (domestic). For delivery of the card outside India, the applicant will be charged an Indian Post charge of Rs 15+,” added CBDT’s FAQ.
Improvements and improvements in PAN 2.0
It also said that if existing PAN holders want to make any correction/update in their existing PAN details like email, mobile or address or demographic details like name, date of birth, they can do so free of cost after PAN 2.0 project. begins.
Till the roll-out of PAN 2.0 project, PAN holders can avail Aadhaar-based online facility for update/correction.
The PAN 2.0 project is likely to start next year.
Combating duplicate PANs under PAN 2.0
The CBDT also said that PAN 2.0, improved system logic for identification of potential duplicate requests for PAN and a centralized and enhanced mechanism to resolve duplicates will reduce cases of individuals holding more than one PAN.
Government’s plan for PAN as common identifier
In Union Budget 2023, the government announced that for business entities required to have PAN, PAN will be used as a common identifier for all digital systems of certain government agencies.
Under the project, the tax department is consolidating all processes related to PAN allotment/update and correction.
PAN 2.0 and Government Agencies
In addition, 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 percent are to individuals.