Indian government introduced the PAN 2.0 project to make the permanent account number a ‘common business identifier” for all digital systems of government agencies. A new QR code is being added to the upgraded version of the PAN card to make it feasible and faster for the customers to access faster and more effective service. According to the press release issued by the government on November 25, 2024, this is an e-governance project basically done to re-engineer the business procedure of taxpayers and also to enhance their digital procedures.
What is PAN 2.0 used for?
By combining the core and non-core PAN and TAN operations, together with the PAN validation services, PAN 2.0 will improve the existing PAN and TAN 1.0 eco-system. The goal of the PAN 2.0 Project is to make it possible for all digital systems of designated government entities to use PAN as a common identity.
What are the benefits of the PAN 2.0 Project?
- Speedy service and ease of access
- Data Consistency
- Eco- friendly process
- Cost optimization
Will PAN card holders need to apply for a new PAN 2.0 Card?
The Income Tax Department announced on Tuesday that current Permanent Account Number (PAN) cardholders will not have to apply for new cards under the updated PAN 2.0 system. Part of a Rs 1,435-crore project to streamline PAN and TAN services, PAN 2.0 was authorized by the Cabinet Committee on Economic Affairs (CCEA), which is led by Prime Minister Narendra Modi.
What is PAN 2.0 used for?
With the goal of making things easier for India's 780 million PAN holders and 7.328 million TAN holders, the system incorporates cutting-edge features like a dynamic QR code and a single platform for all PAN-related services. Anand Kumar Bajaj, the founder, MD, and CEO of PayNearby, stated that the enhanced PAN with QR code integration would streamline KYC procedures, increase data accuracy, and improve service delivery for users.
The current PAN cards will continue to be valid until they need to be updated or corrected, according to the Central Board of Direct Taxes (CBDT). In keeping with the government's digitalization objectives, the additional features are intended to improve the use of current cards without changing their operation.
For cybersecurity and data protection reasons, a "PAN data vault system" will also be developed for all organizations utilizing PAN data.
Individuals own 98% of the 78 crore PAN cards that have been issued.
"PAN holders who have an old PAN card without a QR code have the option to apply for a new card with a QR code," a senior Finance Ministry official told The Indian Express. Applications will be submitted electronically (without paper) in PAN 2.0. According to the Ministry, PAN 2.0 will also lessen the number of cases when a single individual holds multiple PANs and help eliminate duplicate PANs.