Modi Cabinet approves PAN 2.0: QR code-enabled cards, unified digital portal, enhanced security

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the ₹1,435 crore PAN 2.0 project, a comprehensive upgrade of the Income Tax Department's Permanent Account Number (PAN) system.

The initiative seeks to re-engineer taxpayer registration services through advanced technology, offering a unified digital portal, enhanced security, and a paperless interface. The project also aims to establish PAN as a common business identifier across specified government systems.

At a cabinet briefing on Monday, Union IT Minister Ashwini Vaishnaw described the overhaul as a critical step for middle-class taxpayers and small businesses.

"It has been highly upgraded and PAN 2.0 has been approved today. The existing system will be upgraded and the digital backbone will be brought in a new way... It will be tried if it can become a common business identifier. There will be a unified portal, it will be completely paperless and online. The emphasis will be on the grievance redressal system," Vaishnaw said.

Under the project, a new PAN card will be issued to taxpayers, featuring a QR code to enhance security and accessibility. Vaishnaw assured that the entire upgrade, including the issuance of new cards, will be free of cost.

The PAN 2.0 project promises faster, eco-friendly, and cost-effective taxpayer services. The other benefits of PAN 2.0 include enhanced data consistency with a “single source of truth” system, strengthened cyber security through mandatory PAN Data Vaults, and optimised infrastructure for greater agility.

"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," a government release said.

"This will be an upgrade of the current PAN/TAN 1.0 eco-system consolidating the core and non-core PAN/TAN activities as well as PAN validation service." it added.

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