Know All About the New PAN 2.0 Project by the Government!

The Income Tax Department has come up with a new update on PAN cards in India. With the introduction of the PAN 2.0 Project, the government aims to improve taxpayer registration services. Along with this, the upgraded PAN cards will entail a comprehensive redesign of the current system, incorporating advanced technology and eco-friendly practices to enhance service delivery, improve data accuracy, and simplify digital interactions.  

What is PAN 2.0

The Union Cabinet has approved the PAN 2.0 project with a budget of Rs. 1,435 crore.

The PAN 2.0 project aims to facilitate technology-based transformation for taxpayer registration services.

- Union Minister @AshwiniVaishnaw #CabinetDecisions

Credits: @PIB_India… pic.twitter.com/zF0iUtYby1

— Ministry of Information and Broadcasting (@MIB_India) November 25, 2024

PAN (Permanent Account Number) 2.0 is an upgraded version of PAN 1.0. PAN serves as a unique taxpayer number. The new PAN card aims to streamline businesses and citizen-centric operations. As per the IT Department, this project represents an upgrade from the existing PAN/TAN 1.0 ecosystem, consolidating both core and non-core PAN/TAN activities, along with the PAN validation service. The ultimate goal is to provide taxpayers with an improved digital experience.

Making the announcement, Union Minister Ashwini Vaishnaw said, “PAN card is part of our life which is important for the middle class and small business, it has been highly upgraded and PAN 2.0 has been approved today. The existing system will be upgraded and the digital backbone will be brought in a new way.”

QR code in new PAN cards

To provide enhanced data protection and cybersecurity measures, the department seeks to implement a QR-code feature on all new and existing PAN cards, as well as establish a central portal and mandatory PAN data vault system for entities leveraging PAN data.

What about the existing users?

The upgrade seeks to improve functionality without impacting the validity of existing cards. So the existing PAN card holders will not have to apply for a new card as their current cards will remain valid. However, taxpayers will also have the choice to upgrade their cards with new QR code features at no extra charge. 

What four main points did the Cabinet Committee mention?

• Faster, Easier Access: No more waiting around—services will be delivered at lightning speed.
• One Truth, One Source: Your data stays consistent across platforms, eliminating errors.
• Go Green: Eco-friendly processes will cut waste and save costs.
• Stronger Security: Enhanced systems mean your information stays safe and sound.

The ₹1,435 crore initiative is expected to enhance cybersecurity, address corporate needs, and focus on efficient grievance redressal.

When to apply for PAN with QR code under PAN 2.0?

The income tax department is yet to issue a circular clarifying the process of how and when individuals can apply to upgrade their PAN under the PAN 2.0 project