Business News
3 min read | Updated on November 26, 2024, 20:24 IST
SUMMARY
The Union Cabinet has approved the ₹1,435 crore PAN 2.0 Project to upgrade the Permanent Account Number (PAN) system, paving the way for a unified business identifier for various government platforms.
The ₹1,435 crore PAN 2.0 Project will introduce QR-enabled PAN cards.
The Cabinet Committee on Economic Affairs (CCEA) has approved the PAN 2.0 project, paving the way for QR-enabled cards and making the 10-digit alphanumeric Permanent Account Number (PAN) a 'common business identifier' for all digital systems of government agencies.
The PAN 2.0 Project is a ₹1,435 crore initiative by the Income Tax Department to modernise the Permanent Account Number system. It aims to make PAN a "common business identifier" across digital systems of specified government agencies, offering a unified digital portal, paperless services, and improved grievance redressal mechanisms.
"They used to say they don’t want different (identification) numbers, a single number would be beneficial. The project will make efforts to make PAN the common business identifier. All PAN/ TAN/ TIN will be clubbed under this system,” Vaishnaw said.
Unified Portal: A single, fully online platform for all PAN-related services.
Security Upgrades: The introduction of QR codes and mandatory PAN Data Vaults to enhance cyber security.
Faster Services: Speedy, eco-friendly, and cost-effective taxpayer services with improved grievance redressal.
Enhanced Consistency: A “single source of truth” system for better data consistency.
No, existing PAN holders will not need to apply for a new PAN under the PAN 2.0 Project. Holders of older PAN cards without QR codes may optionally request a new one with enhanced features, but this is not mandatory. The government has assured that all current PAN cards will remain valid even after the upgrade.
No, there will be no cost involved for taxpayers. As part of the project, new PAN cards featuring enhanced features, like a QR code for improved security, will be issued free of charge.
The QR code, which has been incorporated in the PAN cards since 2017-18, helps in validating the PAN and PAN details. Currently, a specific QR reader application is available for verification of QR code details. On reading through the reader application, details such as photo, signature, name, father’s name/mother’s name and date of birth is displayed.
Older PAN cards will remain valid. New cards with upgraded features like QR codes will be issued to all holders, but they are not mandatory for continued use of existing PANs.
The new system includes advanced logic to identify and minimise duplicate PANs. Holders of multiple PANs should report and deactivate extras as required by the Income-tax Act, 1961.
For businesses required to have a PAN, the system will now serve as a common identifier across government platforms, reducing paperwork and improving coordination with agencies such as financial institutions and state departments.
Around 78 crore PANs have been issued so far, with 98% of them belonging to individuals.
The details of the application process and timeline for the complete rollout of PAN 2.0 have not been specified yet by the Income Tax department.
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