The Cabinet Committee on Economic Affairs (CCEA) has given its nod to the PAN 2.0 Project, an ambitious initiative by the Income Tax Department under the Central Board of Direct Taxes (CBDT). This project aims to modernize and streamline services related to Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN). Here’s an in-depth look at the project’s features, benefits, and implications.
Why PAN 2.0?
Currently, PAN and TAN-related services are distributed across three platforms:
- e-Filing Portal
- UTIITSL Portal
- Protean e-Gov Portal
This fragmented system often results in delays, inefficiencies, and inconsistencies. The PAN 2.0 Project seeks to integrate these services into a single unified portal, enhancing accessibility, transparency, and ease of use for taxpayers and businesses alike.
Key Features of PAN 2.0
- Unified Portal
- All PAN/TAN services (applications, updates, Aadhaar-PAN linking, corrections, validations, etc.) will now be available on a single platform.
- Faster grievance redressal and efficient service delivery.
- Eco-Friendly and Paperless Processes
- The project aligns with the Digital India initiative by adopting paperless operations, minimizing environmental impact, and eliminating physical documentation.
- Cost Efficiency
- PAN issuance will be free of cost, with digital e-PANs sent to registered email IDs. For physical PAN cards, a nominal fee of ₹50 (domestic) or ₹15 + postal charges (international) will apply.
- Enhanced Security
- Introduction of a PAN Data Vault to safeguard personal and demographic data, ensuring robust privacy protections.
- Comprehensive Support
- A dedicated call center and helpdesk will handle taxpayer queries and issues.
Benefits for Taxpayers
- Simplified Access:
A one-stop solution for all PAN/TAN-related needs reduces confusion and processing time. - Free Updates and Corrections:
Taxpayers can update or correct PAN details (name, address, contact details, etc.) at no cost under the new system. - Faster Service Delivery:
The unified platform eliminates delays caused by the current multi-portal approach. - Improved Digital Integration:
PAN will serve as a common business identifier for specified government digital systems, enhancing ease of compliance.
Frequently Asked Questions (FAQs) on PAN 2.0 Project
Question 1
What is PAN 2.0?
PAN 2.0 Project is an e-Governance project of ITD for re-engineering the business processes of taxpayer registration services. The objective of the project is to enhance the quality of PAN services through adoption of latest technology. Under this project ITD
is consolidating all processes related to PAN allotment/updation and corrections. The TAN-related services are also merged with this project. Besides, PAN authentication/validation through online PAN validation service will be provided to user agencies such as financial institutions, banks, government agencies, central and state government departments etc.
Question 2
How will PAN 2.0 be different from the existing setup?
a. Integration of Platforms: Presently, the PAN-related services are hosted on three different portals (e-Filing Portal, UTIITSL Portal, and Protean e-Gov Portal). In the PAN 2.0 Project, all PAN/TAN-related services will be hosted on a single unified portal of ITD. The said Portal would host all end-to-end services related to PAN and TAN like allotment, updation, correction, Online PAN Validation (OPV), Know your AO, AADHAAR-PAN linking, verify your PAN, request for e-PAN, request for re-print of PAN card, etc.
b. Comprehensive use of technology for paperless processes: Complete online paperless process as against prevailing mode
c. Taxpayer facilitation: Allotment/updation/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 Rs 50 (domestic). For delivery of card outside India, Rs. 15 + India post charges at actuals will be charged to the applicant.
Question 3
Whether existing PAN CARD Holders will be required to apply for new PAN under the upgraded system?
No. The existing PAN card holders are not required to apply for new PAN under the upgraded system (PAN 2.0)
Question 4
Do people have an option to get corrections done on PAN, like name, spellings, address change etc?
Yes. Suppose existing PAN holders want to make any correction/updation of their existing PAN details such as email, mobile, or address or demographic details such as name, date of birth etc. In that case, they can do so free of cost after the PAN 2.0 Project commences. Till the time the PAN 2.0 project is rolled out, PAN holders can avail the Aadhaar-based online facility for updation/correction of email, mobile, and address free of cost by visiting the below websites.
In any other cases of updation/correction of PAN details, the holders can do so using the existing process either by visiting physical centres or applying online on payment basis.
Question 5
Do I need to change my PAN card under the PAN 2.0?
No. The PAN card will not be changed unless the PAN holders want any updation/correction. The existing valid PAN cards will continue to be valid under PAN 2.0.
Question 6
A lot of people have not changed their addresses and are continuing with old address. How will the new PAN be delivered?
No new PAN card will be delivered unless the PAN holder requests for it owing to any updation/correction in their existing PAN. The PAN holders who want to update old address, they can do so free of cost using Aadhaar based online facility by visiting the below website.
Accordingly, the address will be updated in the PAN database.
Question 7
If new PAN cards are QR code enabled, will older ones continue to function as it is?
- The QR code is not a new feature, and it has been incorporated in the PAN cards since 2017-18. The same will be continued under PAN 2.0 project with enhancements (dynamic QR code which will display latest data present in PAN database). PAN holders having an old PAN Card without QR code have an option to apply for a new card with QR code in existing PAN 1.0 ecosystem as well as in the PAN 2.0.
- The QR code helps in validating the PAN and PAN details
- Presently, a specific QR reader application is available for verification of QR code details. On reading through the reader application, complete details, i.e., photo, signature, Name, Father’s Name / Mother’s Name and Date of Birth is displayed.
Question 8
What is – the “Common Business identifier for all business-related activities in specified sectors”?
In the Union Budget 2023, it was announced that for the business establishments required to have a PAN, the PAN will be used as the common identifier for all digital systems of specified government agencies.
Question 9
Whether Common Business identifier will replace the existing unique taxpayer identification number i.e. PAN?
No. PAN itself will be used as a Common Business identifier.
Question 10
What does the “Unified Portal” mean?
Presently, the PAN related services are hosted on three different portals. In the PAN 2.0 Project, all PAN/TAN related services will be hosted on a single unified portal of ITD. The said Portal would host all end-to-end services related to PAN and TAN like allotment, updation, correction, Online PAN Validation (OPV), Know your AO, AADHAAR-PAN linking, verify your PAN, request for e-PAN, request for re-print of PAN card etc., thereby further simplifying the processes, and avoiding delay in PAN services delivery, delay in redressal of grievances etc. caused by the presence of various modes of receipt of applications (online eKYC/online paper mode/offline).
Question 11
For people holding more than one pan, how will you identify and weed out the extra PAN ?
As per the provisions of Income-tax Act, 1961, no person can hold more than one PAN. In case a person holds more than one PAN, he/she is obliged to bring it to notice of Jurisdictional Assessing officer and get the additional PAN deleted/deactivated.
In the PAN 2.0, with the improved systems logic for identification of potential duplicate requests for PAN and centralized and enhanced mechanism for resolving the duplicates would minimize the instances of one person holding more than one PAN.
Conclusion
The PAN 2.0 Project is a significant milestone in India’s journey towards e-governance. By consolidating processes, reducing costs, and leveraging technology, the initiative promises a seamless, efficient, and user-friendly experience for taxpayers and businesses. This transformation reinforces the government’s commitment to transparency, inclusivity, and environmental sustainability.
For further details, visit the official FAQ document.
