What is PAN 2.0, do you need a new card and other questions answered

Income Tax department (Representative image)

The PAN 2.0 project, cleared by the Cabinet Committee on Economic Affairs (CCEA) on November 25, aims to make the permanent account number a “common business identifier” for all digital systems of government agencies and offer easier access to various services.

The Rs 1,435-crore project will consolidate PAN and Tax Deduction and Collection Account Number (TAN) services into a unified, paperless portal, managed by the income-tax department, simplifying access.

Here is a lowdown on what the PAN 2.0 project entails and what it means for taxpayers.

What is the purpose of PAN 2.0?

PAN 2.0 is an e-governance initiative launched to enhance PAN services. It consolidates PAN and TAN services into a single portal, ensuring a paperless process for tasks such as PAN allotment, updates, corrections and online PAN validation (OPV) for financial institutions and government agencies.

Here is a more in-depth explanation

How is PAN 2.0 different from the existing system?

Unified portal: All PAN/TAN services, spread across multiple portals such as e-Filing, UTIITSL and Protean, will be available on one platform.

Streamlined services: Services like e-PAN requests, Aadhaar-PAN linking, and PAN updates would be faster and more user-friendly.

Free updates: Users will be able to update PAN details such as name or address free of cost.

Digital-first approach: The new system is paperless, replacing traditional methods with online processes.

Do I need to reapply for a new PAN card?

No. PAN cardholders do not need to reapply. The current PAN remains valid under the PAN 2.0 system.

Can I update my existing PAN details?

Yes, you can update or correct details such as name, address, mobile number or date of birth for free.

You can use the Aadhaar-based update facility available on the following links:

NSDL PAN Update Service

UTIITSL PAN Update Service

For other updates, you can visit physical centres or apply online through the current system.

Are older PAN cards without QR codes valid?

Yes, older PAN cards remain valid. You can request a reprint with an updated QR code. The new QR code will include dynamic data, allowing easier validation of PAN details.

What should I do if I have multiple PAN cards?

Holding more than one PAN is illegal. PAN 2.0’s advanced system will identify and minimise duplicate PANs. If you have multiple PAN cards, report this to your assessing officer to deactivate the extras.

What is the common business identifier under PAN 2.0?

PAN will serve as a universal identifier for businesses across specified government platforms, which simplifies compliance for businesses by consolidating various identifiers under one system.

What is the cost of PAN services under the new system?

e-PAN: Free, delivered via email.

Physical PAN card: Rs 50 for domestic delivery.

International delivery: Rs 15 plus postal charges.

How will PAN 2.0 benefit users?

Ease of access: A centralised portal eliminates the need for multiple logins.

Faster processing: The paperless process speeds up application and update times.

Enhanced verification: The QR code improves data accuracy, especially for financial institutions.

When will PAN 2.0 be fully implemented?

The full rollout of PAN 2.0 is expected soon. Until then, users can continue to use existing services on current portals for updates and corrections.