Till the launch of PAN 2.0 project, PAN holders can avail Aadhaar based online facility for update/correction.
Currently, about 78 crore PANs have been issued, of which 98 per cent are to individuals.
PAN 2.0 Project Details: The government has approved a Rs 1,435-crore project to improve the existing system of issuing permanent account numbers by issuing PAN cards with a QR code feature.
PAN: A unique identification for taxpayers
PAN is a unique A 10-digit alphanumeric number issued by the Income Tax Department to taxpayers.
Government approval for PAN 2.0
The project was approved. Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi on Monday.
Existing PAN holders need to apply afresh under PAN 2.0?
The Income Tax Department on Tuesday said existing PAN card holders need not apply for a new card under the upgraded PAN 2.0 system which is primarily aimed at introducing a ‘common identifier’ for all business-related activities. .
Key Features of PAN 2.0
The Central Board of Direct Taxes (CBDT) said, “With an existing PAN database of 78 crore PAN and 73.28 lakh TAN, this project caters to the needs of taxpayers, integrating multiple platforms/portals. “The focus is on efficient services for PAN/TAN holders,” the Central Board of Direct Taxes (CBDT) said. A release on Tuesday.
Do you have to pay for PAN 2.0?
PAN cards with QR code feature will be issued free of cost to taxpayers.
Government’s vision for PAN 2.0
Information and Broadcasting Minister Ashwini Vishnu said that businesses are demanding a common business identifier compared to the current 3-4 different identifiers.
Existing PAN with individuals and businesses will remain valid and no need to change the number.
Technology driven transformation of PAN services
The PAN 2.0 project enables a technology-based transformation of taxpayer registration services and aims to improve accessibility and quality. Along with providing fast services.
Second Generation PAN is an e-governance project to re-engineer the business process of taxpayer registration services through technology driven transformation of PAN/TAN services for better digital experience of taxpayers.
Tax Deduction and Collection Account Number (TAN) related services have also been integrated with this project.
CBDT’s FAQs clarify the details of PAN 2.0.
In an FAQ, the CBDT said, “Existing PAN card holders need not apply for a new PAN under the upgraded system (PAN 2.0).”
It further states that the PAN card will not be changed unless the PAN holder wants any update/correction.
“Existing valid PAN cards will continue to be valid under PAN 2.0,” the FAQ said.
QR code feature in PAN cards
The CBDT also clarified that “QR code is not a new feature, and has been added to the PAN card since 2017-18” and will be continued with enhancements under the PAN 2.0 project (Dynamic QR code that will display the current data in the PAN database).
“PAN holders having old PAN card without QR code have option to apply for new card with QR code in existing PAN 1.0 ecosystem as well as PAN 2.0,” CBDT said.
QR code helps to validate PAN and PAN details.
Currently, a dedicated QR reader application is available to verify QR code details.
On scanning the QR code, complete details — photograph, signature, name, father’s name/mother’s name and date of birth — are displayed.
How PAN 2.0 will improve PAN services
How PAN 2.0 will differ from the current setup, the FAQ said, is that it will lead to integration of platforms.
Currently, 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 will host all end-to-end services related to PAN and TAN like allotment, update, validation, online PAN verification (OPV), know your AO, Aadhaar-PAN linking, verify your PAN. , apply for e-PAN, apply for reprint of PAN card, etc.,” as per FAQ.
Paperless and free services under PAN 2.0
PAN 2.0 will also make comprehensive use of technology for paperless processes.
Further, allotment/updation/correction of PAN will be done free of cost and e-PAN will be sent to registered mail id.
“For a physical PAN card, the applicant will have to apply with a prescribed fee of Rs.50 (Domestic). For delivery of the card outside India, the applicant will be charged Rs.15+ India Post Charges,” the CBDT said. The FAQ added.
Improvements and updates to PAN 2.0
It also said that if existing PAN holders want to make any correction/update in their existing PAN details like email, mobile or address or demographic details like name, date of birth, they can do so free of cost after PAN 2.0 project. are begins
Till the launch of PAN 2.0 project, PAN holders can avail Aadhaar based online facility for update/correction.
The PAN 2.0 project is expected to start next year.
Countering Duplicate PAN under PAN 2.0
The CBDT also said that PAN 2.0, with improved system logic to identify potential duplicate applications for PAN and a centralized and improved mechanism to resolve duplicates, has reduced the incidence of a person holding multiple PANs. will go
Government’s Plan for PAN as a Common Identifier
In the Union Budget 2023, the government had announced that PAN would be mandatory for businesses, PAN would be used as a common identifier for all digital systems of certain government agencies.
Under the project, the tax department is consolidating all processes related to PAN allotment/updation and correction.
PAN 2.0 and Government Agencies
In addition, PAN verification/validation will be provided to consumer agencies such as financial institutions, banks, government agencies, central and state government departments through online PAN verification service.
Currently, about 78 crore PANs have been issued, of which 98 per cent are to individuals.