What happens to your PAN card now that PAN 2.0 is here?

The Cabinet Committee on Economic Affairs (CCEA) has given its approval for the Income Tax Department’s PAN 2.0 Project. This initiative is designed to enhance and modernize the procedures for issuing and managing Permanent Account Numbers (PAN) and Tax Deduction and Collection Account Numbers (TAN), aiming to create a more user-friendly and efficient system.

Going by the Budget 2023 announcement, the government plans to designate PAN as the "common business identifier" across all digital platforms of designated government agencies. Despite the prohibition against holding multiple unique account cards, many individuals and entities continue to breach this regulation.

The government anticipates that the rollout of this project will facilitate the detection of such violations. Presently, there exists a database containing 780 million PANs and 7.33 million TANs in the country. Here’s what you need to know about PAN Card 2.0.

What is PAN 2.0?

PAN 2.0 represents a significant enhancement of India's PAN framework. This project seeks to modernize the PAN system by establishing a consolidated digital platform. It will streamline services related to PAN, bolster security measures, and enhance the overall experience for taxpayers. Currently, the unique account card services are dispersed across three platforms:

1. The e-Filing Portal

2. UTIITSL Portal, and

3. Protean e-Gov Portal.

The introduction of PAN 2.0 will integrate all these services into a single, cohesive portal. This comprehensive platform will address all matters concerning PAN and TAN, including applications, updates, corrections, Aadhaar-PAN linking, re-issuance requests, and online PAN validation. Through this initiative, the Income Tax Department aims to simplify procedures, reduce delays, and enhance mechanisms for addressing grievances.

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

The QR code serves to authenticate the PAN and its associated details. It is important to note that this feature is not new; QR codes have been included on PAN cards since 2017-18. This practice will continue with the PAN 2.0 initiative, which will introduce enhancements such as a dynamic QR code that reflects the most current information from the unique account cards' database. Holders of older PAN cards that lack a QR code can apply for a new card featuring this technology, both within the existing PAN 1.0 framework and under the PAN 2.0 project.

What information can be accessed by scanning the QR code on a PAN card?

When scanned using a reader application, the QR code reveals comprehensive details, including the holder's photo, signature, name, father's name or mother's name, and date of birth.

Do I need to apply for a new PAN card?

No, there is no need to apply for a new PAN card. Your current PAN card will continue to be valid. Under the PAN 2.0 project, you will automatically receive an electronic version of your card via email, without the need for a separate application.

What is the fee for upgrading to a new PAN card?

There is no fee associated with upgrading to the new PAN card design that includes a QR code. However, individuals who wish to obtain a physical card will need to apply and pay a fee of Rs 50 if they reside within the country.

Will my old PAN card still be valid?

Your old PAN card will remain valid unless it is linked to your UID number. The lack of a QR code on your PAN card does not impact its validity.

What is the reason behind the government's upgrade of the PAN system?

The government is upgrading the PAN system to enhance its efficiency, security, and user experience. This modernization aims to improve tax compliance and alleviate administrative challenges.

What should individuals do if they possess multiple PAN cards?

According to the Income Tax Act of 1961, individuals are prohibited from holding more than one PAN. If someone has multiple PANs, they must inform the Jurisdictional Assessing Officer and request the cancellation or deactivation of the additional PAN. The new PAN 2.0 system is designed to better identify potential duplicate PAN requests and streamline the process for resolving duplicates, thereby reducing the occurrence of individuals holding multiple PANs.