Income Tax Department has introduced PAN 2.0, a major e-Governance project aimed at improving the PAN system for taxpayers. Approved by the Cabinet Committee on Economic Affairs, this initiative enhances PAN-related services with advanced technology and a unified platform.
What Is PAN 2.0?
PAN 2.0 re-engineers the existing PAN system to make taxpayer registration and PAN-related services more efficient. It combines all processes, including PAN allotment, corrections, and TAN (Tax Deduction and Collection Account Number) services, into one streamlined platform. The project also includes PAN authentication and validation services for banks, government agencies, and financial institutions.
Key Features of PAN 2.0
- Unified Portal: Instead of using multiple platforms like the e-Filing Portal and UTIITSL Portal, all services related to PAN and TAN will be available on a single Income Tax Department (ITD) portal.
- Paperless Processing: PAN-related processes will be entirely online and paperless, offering users a quicker, hassle-free experience.
- Free PAN Services: Taxpayers can update or correct their PAN details, such as name or address, at no cost. However, obtaining a physical PAN card requires a small fee of Rs 50 for domestic delivery.
Do Current PAN Holders Need to Reapply?
No. Existing PAN holders do not need to apply for a new PAN under PAN 2.0. Their current PAN cards remain valid. However, those wishing to update or correct their PAN information can do so through the Aadhaar-based online system or existing physical and online methods.
QR Code-Enabled PAN Cards
Since 2017-18, PAN cards have included a QR code feature to validate PAN details. PAN 2.0 enhances this feature with a dynamic QR code displaying updated information. Older PAN cards without QR codes remain valid, but holders can apply for a new QR-enabled card if desired.
Common Business Identifier
Under the Union Budget 2023, PAN will serve as a Common Business Identifier for businesses required to have a PAN. This simplifies interactions with various government agencies by using PAN as a universal identifier across systems.
Unified Portal for Simplified Services
The new portal consolidates PAN and TAN services, including:
- PAN allotment, updates, and corrections
- Aadhaar-PAN linking
- Online PAN validation
- Request for e-PAN or reprinting PAN cards
This unified approach reduces delays and simplifies the PAN service process.
Managing Duplicate PANs
Holding more than one PAN is illegal. PAN 2.0 introduces enhanced systems to identify and resolve duplicate PAN issues, ensuring compliance with the Income Tax Act, 1961.
PAN 2.0 is set to transform the taxpayer experience with faster, paperless processes and a unified portal. By modernizing the PAN system, the Income Tax Department aims to provide seamless, efficient services to taxpayers across India.
