PAN 2.0 Explained: Updates, Features, and More

The Indian Government has launched the PAN 2.0 project to upgrade the existing PAN card by adding QR codes. This project is an initiative by the Indian Income Tax Department to upgrade the PAN system. However, the question arises of whether the existing PAN card becomes useless if it doesn't have a QR. Read this blog to get more insights about the PAN 2.0 project.

What Is The PAN 2.0 Project?

The government announced the PAN 2.0 project as an e-governance project. Union Minister Ashwini Vaishnav said that the PAN upgrade will comprise adding a QR code and will be free for all taxpayers.

PAN 2.0 project is a ₹1,345 crore initiative that aims to make the PAN a 'common business identifier'. It will be across all the digital systems of some specified government agencies. This will create a mix of digital portals for all PAN-related services. Also, will enable paperless operations and improved grievance redressal mechanism (GRM).

This initiative will introduce PAN cards with QR codes. It will improve security and allow easier validation of the PAN details. It was stated previously that multiple Identification numbers were not necessary. Also, a single identifier would be more beneficial than a numerous. This project mainly aims to make the PAN the most common business identifier. Under this system, PAN/TAN/TIN will come together.

The PAN 2.0 will upgrade the current PAN and TAN 1.0 eco-system by joining core and non-core TAN operations. As well as, the PAN validation services.

What Are The Reasons for Launching PAN 2.0?

According to Ashwini Vaishnav, the industry wanted a common business identifier. They made repeated requests to make the interaction with various government agencies easier. The PAN 2.0 project aims to address this need by making PAN the common identifier.

What Are The Benefits and Features of PAN 2.0?

The new PAN 2.0 project has several benefits to it:

Combined Portal

Only one single platform will be available for every PAN-related service.

Modernized Security

The QR codes and necessary PAN data vault will improve cybersecurity.

Quick Services

The PAN 2.0 project's motive is to provide quick and affordable taxpayer services. Along with an enhanced grievance redressal system

Improved Consistency

The 'single source of truth' system will help in improving data consistency.

QR Code Verification

The QR code included in the PAN card since 2017-28 helps in validating the PAN and its details. It can be done by using a specific reader application.

Reducing Identical PANs

Advanced technology in the new system will help identify and eliminate duplicate PANs. People holding multiple PANs must deactivate the extra as required by the Income Tax Act, of 1961.

How The New PAN 2.0 System Will Impact Businesses?

Businesses that need to have a PAN card will enjoy less paperwork as the PAN will serve as a common identifier. It will help in improving coordination with different agencies. Including the financial institutions and state departments.

1). Will existing PAN card holders have to apply for a new PAN card under the PAN 2.0 upgraded system?

No, the existing PAN holders do not have to apply for a new PAN under the PAN 2.0 system. People holding old PAN cards without QR codes may request a new one if they wish, but it is not necessary. The government has said that all the existing PAN cards will remain valid even after the PAN 2.0 upgrade.

2). How and when will the new PAN card get delivered?

The upgraded e-PAN(electronic PAN) will be sent to the user's registered mail address. You will receive it at no cost as part of a paperless initiative. Those who need a physical PAN card make a specific request. For which you will have to pay a fee of Rs 50 for domestic deliveries. Also, Rs 15 plus actual India post charges for international deliveries. A new PAN card will be issued only if the PAN holder requests it as upgrading to the new PAN card isn't mandatory.

3). Will the old PAN continue to perform as it is?

Yes, the older PAN will remain valid even without a QR code. The PAN 2.0 project aims to upgrade the PAN system and introduce QR-included cards. The older PAN cards will still remain functional and valid.

4) Do people get the chance to make corrections on PANs like name, spelling, address change, etc?

• Existing PAN cardholders have the option to make changes or updates to their details. Like name, address, and demographic details. It will be free of cost once the PAN 2.0 system is active.
• Until the new system starts, users can use an Aadhar-based online facility to make certain changes. Such as email and mobile numbers at no cost. This is possible through using designated online portals.

5). What is the cost for the PAN services under the PAN 2.0 system?

There will be no cost for taxpayers under the PAN 2. 0 system. Unless you request a physical delivery of your new PAN card. This will include a new PAN card with advanced upgraded features like a QR code.

6). What is the Common Business Identifier?

Common Business Identifier (CBI) is an important element of the PAN 2.0 project. The PAN 2..0 goal is to make a single identifier that businesses can use across all government platforms. It simplifies interactions with agencies like financial institutions and state departments. The PAN 2.0 system reduces paperwork and increases coordination. The PAN card itself will be used as the Common Business Identifier (CBI).

7). When Should I Apply for a PAN with a QR code under the PAN 2.0 system?

The income tax department has not specified a date yet from which the taxpayers can apply for PAN 2.0.

Conclusion

The PAN 2.0 is very beneficial and one must apply for this upgrade to experience advanced technology. Around 78 crore PANs have been issued till now with 98% belonging to individuals. The income tax department hasn't specified the PAN Card application process yet.