New Delhi: In a bid to modernise India's financial and tax systems, Union Minister Ashwini Vaishnaw on Monday unveiled plans to launch PAN 2.0, an advanced version of the Permanent Account Number (PAN). During a Cabinet briefing, Vaishnaw said that the new system would streamline business processes and enhance citizen services through cutting-edge technology.
What is PAN 2.0?
The Permanent Account Number (PAN), introduced in 1972 under Section 139A of the Income Tax Act, serves as a unique taxpayer identification number. According to the Union Minister, PAN 2.0 represents a tech-driven upgrade to this decades-old system. With over 78 crore PANs already issued, covering 98% of eligible individuals, the initiative is set to further integrate PAN into India’s digital and financial ecosystems.
Key Features of PAN 2.0
The revamped PAN system is expected to bring improvements to operations and security. Some of the key features highlighted by the Union Minister include:
- System Upgrade: A comprehensive overhaul of the existing framework to improve operational efficiency.
- Common Business Identifier: PAN will function as a single identification number for business activities across specified sectors.
- Unified Portal: A one-stop platform to access all PAN-related services, ensuring convenience for users.
- Enhanced Cybersecurity: Implementation of robust cybersecurity measures to protect user data.
- PAN Data Vault: A mandatory secure storage system for entities handling PAN data to prevent misuse.
Benefits for Citizens
Aligned with the government’s Digital India initiative, PAN 2.0 is expected to deliver a seamless, paperless, and technology-driven experience for individuals and businesses. Its Key benefits include:
- Simplified processes for managing tax-related and business activities.
- Unified identification through the Common Business Identifier for ease of use.
- An efficient grievance redressal mechanism powered by advanced technologies.
- Enhanced data security and transparency in financial transactions.
By integrating these features, PAN 2.0 aims to boost transparency, improve user experience, and align India’s financial system with global standards.
When Will PAN 2.0 Be Rolled Out?
While the Centre has not announced a specific timeline for the rollout, the revamped PAN system is anticipated to go live soon, ensuring that citizens and businesses benefit from its improved features.
Will You Need a New PAN Number?
Minister Vaishnaw clarified that citizens will not be required to change their existing PAN numbers. The transition to PAN 2.0 will serve as an upgrade to the current system.
One of the standout features of the new system will be a QR code embedded on the PAN card, enabling quick scans and full online functionality. This marks a major step toward a fully digital, secure, and efficient financial ecosystem.
Will PAN 2.0 Upgrade Be Free?
Yes, the transition to PAN 2.0 will be completely free of cost, Union Minister Ashwini Vaishnaw confirmed during his Cabinet briefing. Citizens will not incur any charges for the upgraded features.
