What is PAN 2.0?

The government has launched the PAN 2.0 Project to streamline and modernize the process of issuing and managing Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN). The government’s stated objective is to make issue and management of PAN more user-friendly and to consolidate multiple platforms/portals involved in PAN services. Currently, these services are hosted on three different portals (e-Filing portal, UTIITSL Portal and Protean e-Gov Portal) but with PAN 2.0, all services will be hosted on a single unified portal of the Income Tax department. The idea is to also use PAN as a common business identifier for companies so that they can maintain one single identity instead of multiple ones.

What is the cost of the PAN 2.0 program?

The government has allocated ₹1,435 crore for this project. It plans to overhaul the current PAN/TAN system and this will involve going fully paperless.

Does my existing PAN card now become invalid? Do I have to get a new PAN card under PAN 2.0?

No, it does not become invalid, and people do not have to change their existing PAN card. The authorities also will not be delivering any new PAN card unless you, as a PAN holder, request for it due to any updation/correction in existing PAN. The existing valid PAN cards will continue to be valid under PAN 2.0.

What is the purpose of the QR code on PAN card?

The QR code by itself is not a new feature in the PAN cards and it has been incorporated in the cards since 2017-18. While the same will be continued, under PAN 2.0 there are some enhancements such as having a dynamic QR code to display latest data as updated in PAN database. Currently, a QR reader app is available and once the app is used to scan the QR code, complete details of the ID holder such as photo, signature, Name, Father’s Name / Mother’s Name and Date of Birth is displayed.

What about those who have multiple PAN cards?

Under the provisions of Income-tax Act, 1961, no person can hold more than one PAN, and in case a person holds more than one PAN, they must bring it to notice of authorities and get the additional PAN deactivated. The PAN 2.0 project will help weed out such duplicate PANs with its digital logic and centralised mechanism for identification of potential duplicate requests for PAN. With PAN being an unique identifier of the citizen, PAN 2.0 is expected to be a step towards better compliance and reduced tax evasion.

What is the cost involved for the user if they want the new PAN?

PAN holders who have an old PAN Card without QR code have an option to apply for a new card. The allotment or updation or correction of PAN will be done free of cost and e-PAN will be sent to the registered mail id. For physical PAN card, the applicant has to make a request along with the prescribed fee of ₹50 (for domestic delivery). For delivery of card outside India, ₹15 + applicable post charges will have to be borne by applicant.