Pan 2.0 Goes Digital: What Happens to Older PAN Cards? More Details Inside

New Delhi: The government recently announced the Rs 1,435 crore PAN 2.0 Project to make the permanent account number a 'common business identifier' for all digital systems of government agencies.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has given its approval for the PAN 2.0 Project of the Income Tax Department with a financial outlay of Rs 1,435 crore, minister Ashwini Vaishnav said.  

The PAN 2.0 Project enables technology-driven transformation of taxpayer registration services and is aimed at ease of access and speedy service delivery with improved quality.

Single source of truth and data consistency; eco-friendly processes and cost optimization; and security and optimisation of infrastructure for greater agility, are the other benefits of the project.

"The PAN 2.0 Project resonates with the vision of the Government enshrined in Digital India by enabling the use of PAN as Common Identifier for all digital systems of specified government agencies," an official release said.

PAN 2.0 Project is an e-Governance project for re-engineering the business processes of taxpayer registration services through technology-driven transformation of PAN/TAN services for enhanced digital experience of the taxpayers.

PAN Card with QR Code: 

The PAN 2.0 project aims to create a "common business identifier" for all digital systems of government agencies.

PAN is a unique 10-digit alphanumeric number issued by the Income Tax Department to Indian taxpayers.

Briefing mediapersons about the decision, Information and Broadcasting Minister Ashwini Vaishnaw said businesses have been demanding a common business identifier as against the current 3-4 different identifiers.

The present PAN with individuals and businesses will remain valid and there will be no need to change the number.

PAN 2.0 Project enables technology-driven transformation of taxpayer registration services and is aimed at ease of access and speedy service delivery with improved quality.

Single source of truth and data consistency; eco-friendly processes and cost optimisation; and security and optimisation of infrastructure for greater agility are the other benefits of the project.

Existing PAN holders do not need to apply for fresh PAN 2.0 

Existing Permanent Account Number (PAN) card holders are not required to apply for a new one under the upgraded PAN 2.0 system that is primarily aimed at introducing a 'common identifier' for all business-related activities, the Income Tax Department said.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, had approved the Rs 1,435-crore PAN 2.0 Project to streamline and modernise the process of issuing and managing PAN and TAN, making it more user-friendly and efficient.

PAN is a unique 10-digit alphanumeric number issued by the Income Tax Department to Indian taxpayers.

PAN 2.0 is an e-governance project of the Income Tax Department (ITD) for re-engineering the business processes of taxpayer registration services, it said, adding that the objective of the project is to enhance the quality of PAN services through adoption of latest technology.

The Tax Deduction and Collection Account Number (TAN)-related services are also merged with this project.

In an FAQ, the CBDT further said, "The existing PAN card holders are not required to apply for new PAN under the upgraded system (PAN 2.0)." The PAN card will not be changed unless the PAN holders want any updation/correction, it added.

"The existing valid PAN cards will continue to be valid under PAN 2.0," officials said.

"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," officials said.

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 scanning of the QR code, complete details such as photo, signature, name, father's name/mother's name and date of birth is displayed.

Till the time the PAN 2.0 project is rolled-out, PAN holders can avail of the Aadhaar-based online facility for update/correction.

PAN 2.0 project is likely to be rolled out next year.

Currently, about 78 crore PANs have been issued, of which 98 per cent are to individuals.