Government Archives ~ My Mobile India

Highlights GoI approved a Rs 1,435-crore PAN 2.0 Project to upgrade the system for issuing PAN. The project aims to enhance the usability and functionality of current cards. It will integrate core and non-core PAN and TAN activities. Existing PAN cards will remain valid. PAN 2.0 includes dynamic QR codes, faster and more accessible services, data consistency, environmental friendliness, cost efficiency and enhanced security. PAN 2.0 Project approved by the Cabinet. (Image credit - Unknown) The Government of India recently approved a Rs 1,435-crore PAN 2.0 Project for upgrading the existing system for issuing Permanent Account Numbers (PAN). The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi gave the green light for the project on November 25, 2024. So, what is PAN 2.0? What are the key features and benefits? Do you have to apply for a new PAN? Well, to answer all the questions, here is a roundup of everything we know about the latest announcement. Naveen Wadhwa, Vice President of Research & Advisory at Taxmann.com: The PAN 2.0 project aims to consolidate PAN, TIN and TAN for businesses as a common business identifier. This will be a game changer for businesses to maintain one single identity instead of multiple ones in compliance with the Income Tax Act, of 1961. However, the addition of a QR Code on an individual’s PAN card has already been done by the income tax department in recent years. According to income tax laws, a PAN will become invalid only if it is not linked to an Aadhaar number. Merely not having a QR code on the PAN card will not make the existing PAN card invalid. However, it is recommended that individuals having PAN without a QR code must upgrade their PAN to a new design to avoid any future repercussions. Sudhir Kaushik, CEO of Taxspanner.com: The existing PAN card will not become invalid if there is no QR code on it. The existing PAN card will remain valid and taxpayers have an option to get an upgraded PAN card with QR code without any additional code. The PAN 2.0 project aims to integrate core and non-core PAN and TAN services into a unified, paperless platform, aligning with the government’s digital India. This initiative will further strengthen the tax department net to catch tax evaders as PAN is a unified identifier for all financial transactions. Abhishek Soni, CEO Tax2win.in: The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the PAN 2.0 initiative on 25 November, 2024. As per the announcement, the existing PAN numbers are expected to remain unchanged. However, a new PAN card with an embedded QR code in soft copy will be issued. Additionally, it has been announced that a "PAN Vault System" will be introduced to enhance the safety of PAN information. This system may imply that, similar to Aadhaar usage, an OTP authentication process could become mandatory before accessing or using an individual's PAN. This initiative aims to strengthen security and ensure better control over the usage of PAN data. Yogesh Kale, Executive Director, Nangia Andersen LLP: PAN 2.0 is aimed at upgrading the existing PAN system, by featuring a centralised portal for all PAN-related services, with enhanced cyber security. PAN will be a common identifier for digital interactions across government systems. System modernisation, QR code integration, unified portal, improved security and eco-friendly operations. PAN cards will now feature QR codes which will enable quick access and easy verification. Union Minister Ashwini Vaishnav has clarified that existing PAN cards will remain valid and taxpayers will not be required to apply for new PANs. However, taxpayers will have an option to upgrade the existing cards to the new PAN cards with QR codes, at no extra cost. Upgrading existing cards to the PAN 2.0 cards will ensure faster delivery of PAN-related services and data accuracy. Nitesh Buddhadev, Chartered Accountant and founder of Nimit Consultancy: No, your PAN card will not become inactive if you don't apply for PAN 2.0 immediately. PAN 2.0 is a significant upgrade under the Digital India initiative, integrating PAN/TAN services into a unified, paperless platform. The new PAN card will feature enhanced cybersecurity and a QR code for seamless scanning while retaining the existing PAN number. However, the government has not yet announced a deadline or the process to shift, and the transition will be phased. Importantly, the current PAN cards will remain valid throughout this process, ensuring convenience for all 78 crore PAN holders. CA Anand Bathiya, President of the Bombay Chartered Accountants' Society (BCAS), explained, "The key aspect of the PAN 2.0 project is the upgraded technology framework that will enable PAN to be used as a universal identifier for businesses. This combined identifier powered by technology will add to the ease of running a business in India." What Is PAN 2.0? #Cabinet approves #PAN 2.0 Project of the Income Tax Department. The financial implications for the PAN 2.0 Project will be Rs. 1,435 crore. The PAN 2.0 Project enables technology-driven transformation of Taxpayer registration services -Union Minister @AshwiniVaishnaw… pic.twitter.com/WcE9liwweT — PIB India (@PIB_India) November 25, 2024 According to the government press release, the PAN 2.0 Project is an e-governance initiative designed to re-engineer the taxpayer registration process. The project focuses on leveraging technology to streamline PAN and TAN services while offering taxpayers a more efficient and enhanced digital experience. The updated system will replace the current PAN and TAN 1.0 ecosystem. It will integrate the core and non-core activities related to PAN and TAN services as well as PAN validation. One of the key objectives of the project is to establish PAN as a common identifier for all digital systems used by specified government agencies. Existing PAN Cards Will Stay Valid The Central Board of Direct Taxes (CBDT) confirmed that existing PAN cards will remain valid unless updates or corrections are required. The changes introduced through the PAN 2.0 Project will not alter the functionality of current cards but aim to enhance their usability in line with the government’s digitalisation goals. “With an existing database of 78 crore PANs and 73.28 lakh TANs, the project addresses taxpayers’ needs by consolidating multiple platforms and portals to deliver efficient services to PAN and TAN holders," the CBDT said in a statement. QR Code Feature Enhancements CBDT also clarified that QR codes introduced on PAN cards since 2017-18 will continue under PAN 2.0 with improvements. These include dynamic QR codes that will display the latest data from the PAN database. PAN holders with older cards lacking QR codes can apply for updated versions in both the existing PAN 1.0 system and the new PAN 2.0 framework. Key Benefits of PAN 2.0 The PAN 2.0 Project promises several advantages including the following Faster and more accessible service delivery with better quality. Ensured data consistency through a Single Source of Truth. Environmentally friendly processes and cost efficiency. Enhanced security and optimised infrastructure for greater flexibility. This ambitious project aligns with the government’s vision for a technology-driven and eco-friendly digital future. FAQs Q1. What is the PAN 2.0 Project? Answer. The PAN 2.0 Project is an e-governance initiative designed to re-engineer the taxpayer registration process, focusing on leveraging technology to streamline PAN and TAN services and offering taxpayers a more efficient and enhanced digital experience. Q2. Will existing PAN cards remain valid with the PAN 2.0 update? Answer. Yes, existing PAN cards will remain valid unless updates or corrections are required. The PAN 2.0 Project aims to enhance usability without altering the functionality of current cards. Q3. What are the key features of the PAN 2.0 Project? Answer. Key features include dynamic QR codes with the latest data, faster and more accessible service delivery, ensuring data consistency, environmentally friendly processes, cost efficiency, and enhanced security. Q4. Do I need to apply for a new PAN under the PAN 2.0 Project? Answer. No, you do not need to apply for a new PAN. The changes introduced through the PAN 2.0 Project will not affect the validity of your existing PAN card but will enhance its usability and functionality. Q5. What is the purpose of PAN 2.0? Answer. The purpose is to streamline PAN and TAN services, improve efficiency, and provide a more enhanced digital experience for taxpayers by consolidating multiple platforms and portals. Read More: Airtel Payments Bank Simplifies Digital Banking Experience with Enhanced Security, Fraud Alarm, and Transparency Features Read More: Google Wallet Now Turns Any Document into a Digital Pass: Learn How Read More: NPCI Launches UPI One World to Simplify Digital Payments for NRIs and Tourists

Tag: Government

Popular articles

Apple Working on AirTag-Like AI Pin With Dual Cameras and Built-In Speaker

Samsung Qi2 Magnetic Power Bank With 15W Wireless Charging for Galaxy S26 Series Leaks Online

OpenAI Begins Global Rollout of Age Verification System for ChatGPT; First OpenAI AI Device Tipped to Be Audio Headset

OnePlus Shutdown Rumours Dismissed as CEO Clarifies Company is Operating “As Usual”

Oppo Find X9 Ultra Leak Hints at 4.28x Teleconverter with 300mm Focal Length for Long-Range Shots

About us

Quick Links

Must Read

Apple Working on AirTag-Like AI Pin With Dual Cameras and Built-In Speaker

Samsung Qi2 Magnetic Power Bank With 15W Wireless Charging for Galaxy S26 Series Leaks Online

OpenAI Begins Global Rollout of Age Verification System for ChatGPT; First OpenAI AI Device Tipped to Be Audio Headset