Permanent Account Number (PAN) is an identity card of an Indian Resident and it represents that the holder is an Indian Citizen. As a key enabler of the digital economy, PAN has transformed into a gateway for essential services, making it indispensable in daily life. A person is required to quote PAN at every single place.
The Cabinet Committee on Economic Affairs (CCEA) has approved the Income Tax Department’s PAN 2.0 Project. Presently, India has 78 Crores PAN and 73.28 Lakhs TAN. The PAN 2.0 project aims to streamline and modernize the process of issuing and managing PAN and TAN, making it more user-friendly and efficient. This project addresses the requirements of taxpayers, focusing on the consolidation of multiple portals and providing efficient services to PAN TAN holders.
Currently, PAN-related services are spread across the following three different platforms:
- the eFiling Portal,
- UTIITSL Portal, and
- Protean e-Gov Portal.
With PAN 2.0, all such services shall be provided through one unified portal. This one-stop platform will handle comprehensive issues/matters related to PAN and TAN, including application, updates, corrections, Aadhaar-PAN linking, re-issuance requests, and even online PAN validation.
CBDT has issued FAQs related to PAN 2.0 addressing the following issues:
1. What is PAN 2.0?
- PAN 2.0 Project is an e-Governance project for re-engineering the business processes of taxpayer registration services.
- This project aims to enhance the quality of PAN services through the latest technology.
- All PAN and TAN-related processes such as allotment, updation, rectification, etc. shall be integrated into one single portal.
- PAN authentication through online PAN validation service will be provided to user agencies such as financial institutions, banks, government agencies, central and state government departments, etc.
Read Also: Form 10F filing by non-resident without obtaining PAN
2. Features of PAN 2.0
The PAN 2.0 Project is a significant step toward aligning with the Digital India initiative. It focuses on eco-friendly, paperless processes while establishing PAN as a common identifier for all digital systems of specified Government agencies. Key features of PAN 2.0:
- A single portal for all PAN TAN-related services;
- Eco-friendly paperless processes to reduce paperwork
- PAN will be issued free of cost, with quicker processing times.
- Personal and demographic data will be protected through enhanced security measures, including a PAN Data Vault.
- A dedicated call center and helpdesk to address user queries and issues
3. How will PAN 2.0 be different from the existing setup?
- Integration of Platforms: Presently, the PAN-related services are hosted on three different portals. In the PAN 2.0 Project, all PAN/TAN-related services will be hosted on a single unified portal of ITD. The said Portal would host all end-to-end services related to PAN and TAN like allotment, updation, correction, Online PAN Validation (OPV), Know your AO, AADHAAR-PAN linking, verify your PAN, request for e-PAN, request for re-print of PAN card, etc.
- Comprehensive use of technology for paperless processes: Complete online paperless process as against prevailing mode. e-PAN will be sent to the registered email ID.
- Taxpayer facilitation: All PAN and TAN-related services shall be provided on a free-of-cost basis. For a physical PAN card, the applicant has to make a request along with the prescribed fee of Rs 50 (domestic).
4. Whether existing PAN holders need to apply for a new PAN under PAN 2.0?
No. The existing PAN card holders are not required to apply for a new PAN under the upgraded system (PAN 2.0). They can continue with existing PAN cards.
5. Do people have an option to get corrections done on PAN, like name, spelling, address change, etc?
- Yes. If existing PAN holders want to make any correction or updation in their existing PAN details such as name, date of birth, etc., the same can be done free of cost after the PAN 2.0 Project commences.
- Till the PAN 2.0 project is rolled out, the PAN holders update the details in the PAN database through the existing process.
6. In case of a change in address of the person and the PAN database has an old address then how will the new PAN be delivered?
CBDT has clarified that no new PAN card will be delivered unless the PAN holder requests for it due to updation or correction in their existing PAN. The PAN holders who want to update their old address can do so free of cost using the Aadhaar-based online facility.
7. What will the QR code on the PAN card help us with?
The QR code will help in validating the PAN and PAN details. Presently, a specific QR reader application is available for verification of QR code details. On reading through the reader application, complete details, i.e., photo, signature, Name, Father’s Name / Mother’s Name, and Date of Birth are displayed.
Also, the QR code is not a new feature and the same has been incorporated in the PAN cards since 2017-18. Such PAN shall continue under the PAN 2.0 project as well. PAN holders having an old PAN Card without a QR code shall have the option to apply for a new card with a QR code.
8. What is – the “Common Business identifier for all business-related activities in specified sectors”?
In the Union Budget 2023, it was announced that for the business establishments required to have a PAN, the PAN will be used as the common identifier for all digital systems of specified government agencies.
9. How do people holding more than one PAN identify and weed out the extra PAN?
As per the provisions of the Income-tax Act, of 1961, no person can hold more than one PAN. In case a person holds more than one PAN, he/she is obliged to bring it to the notice of the Jurisdictional Assessing officer and get the additional PAN deleted or deactivated.
In PAN 2.0, with the logic of the improved system for identification of potential duplicate requests for PAN and centralized and enhanced mechanism for resolving the duplicates would minimize the instances of one person holding more than one PAN.
