PAN 2.0 explained: Is your current PAN card without QR code invalid?

PAN 2.0 consolidates all PAN/TAN activities and validation services into a single ecosystem for improved efficiency

The government announced the PAN 2.0 project, introducing a revamped Permanent Account Number (PAN) system on Monday. The initiative will provide free upgrades to PAN cards, integrating advanced technology and a QR code for improved security and ease of use.   

 

What change for taxpayers?

 

The PAN 2.0 project, part of an e-governance drive, will overhaul the existing system to streamline taxpayer registration and verification processes. “This initiative brings faster service delivery, improved data accuracy, and seamless digital experiences,” said Adhil Shetty, CEO of Bankbazaar.com.  

 

He added, “With PAN 2.0, taxpayers can look forward to shorter waiting times for card delivery, uniform information across platforms, and better security to protect their data. It’s designed to simplify tax management for individuals and businesses alike.”  

 

 

Is your current PAN card still valid?  

 

Yes, existing PAN cards remain valid. However, taxpayers can upgrade their cards to the new version with a QR code at no extra cost. “The QR code enhances security and offers a convenient way to access digital verification features without financial burden,” said Sudhir Kaushik, Co-founder & CEO of Taxspanner.  

 

What are the benefits of PAN 2.0?  

 

The government has outlined key benefits:  

 

< Faster access to services and better data accuracy.  

< Single Source of Truth, ensuring data consistency across platforms.  

< Eco-friendly processes and optimised costs.  

< Improved security and infrastructure flexibility.  

 

Kaushik explained how these changes would be practical for taxpayers.  

 

Faster loan approvals: A bank can scan the QR code on a PAN card to instantly access an applicant's tax history and identity verification, speeding up the process.  

  Efficient tax audits: During an audit, officials can scan the QR code to retrieve verified PAN details without needing physical documents, making the process quicker.  

 

"For entrepreneurs managing multiple businesses, the PAN as a common business identifier will simplify compliance across various regulatory platforms, reducing complexity. Moreover, citizens applying for government subsidies or benefits can also benefit from instant digital verification at government offices, saving time and effort,” said CA Anand Bathiya, President, BCAS (Bombay Chartered Accountants' Society).

 

What is the PAN 2.0 project?  

 

The PAN 2.0 project re-engineers taxpayer registration services, using technology to transform PAN and TAN processes. It consolidates all PAN/TAN activities and validation services into a single ecosystem for improved efficiency. 

 

The system overhaul will enhance infrastructure and replace the PAN/TAN 1.0 ecosystem. Speaking on the project, Union IT Minister Ashwini Vaishnaw said, “This initiative will make taxpayer registration and verification seamless, reflecting the government’s commitment to modernising governance.”

 

 "The Organisation for Economic Co-operation and Development (OECD) report on ‘Tax Administration 3.0: The Digital Transformation of Tax Administration’ highlights six key building blocks, the first of which is a digital identity for the secure and unique identification of taxpayers and citizens in an integrated manner. The PAN 2.0 project aligns well with the government’s vision for digital tax administration and is a welcome move", said Pritin Kumar, Partner, Deloitte India.

 

"Interestingly, in Deloitte's survey on Income Tax Digitalisation in India 2.0’, approximately half of the respondents anticipated the implementation of unified digital tax IDs for authentication purposes," he added.