Explained: How will PAN 2.0 be different from the existing setup?

Here is all you need to know about the initiative and its impact on your tax filings.

The Union Cabinet Committee on Economic Affairs (CCEA) on Monday approved the Income Tax Department’s permanent account number (PAN) 2.0 Project to streamline and modernise issuing and managing PAN and Tax Deduction and Collection Account Number (TAN). According to the Central Board of Direct Taxes (CBDT), there are 780 million PANs and 7.328 million TANs.

 

What is PAN 2.0? 

It is an e-governance project for re-engineering taxpayer registration. The objective is to enhance the quality of PAN services through latest technology. Under this project the department is consolidating all processes related to PAN allotment/updating and correction. TAN-related services have been 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, and central and state government departments. 

How will PAN 2.0 be different from the existing setup? 

At present PAN-related services are hosted on three portals (e-Filing Portal, UTIITSL Portal and Protean e-Gov Portal). In PAN 2.0, all PAN/TAN-related services will be hosted on a single unified portal. The portal will host end-to-end services related to PAN and TAN like allotment, updating, correction, online PAN validation (OPV), and a request for reprinting the PAN card. Now there will be comprehensive use of technology for paperless processes.Allotment /updating/correction will be done free and e-PAN will be sent to the registered mail id.

 

Will the existing PAN card holders be required to apply for a new PAN under the upgraded system? 

No. 

Can people correct their names, spellings, addresses, etc? 

Yes. They can do so free after PAN 2.0 commences. Till it is rolled out, PAN holders can take the Aadhaar-based online facility for updating/correcting emails, mobile phones, and addresses for free. In any other cases, holders can do so using the existing process either by visiting physical centres or applying online — for a payment. 

Does one need to change one’s PAN card under the PAN 2.0? 

No. The PAN card will not be altered unless the holder wants any change.

 

If new PAN cards are QR code-enabled, will older ones continue to function as they are? How will the QR code help?

 

The QR code is not a new feature, and it has been there in PAN cards since 2017-18. This will continue under PAN 2.0 with enhancements (a dynamic QR code, which will display the latest data in the PAN database). A PAN holder with an old card without a QR code has the option to apply for a new card with a QR code in existing PAN 1.0 eco-system as well as in the PAN 2.0.