What is PAN 2.0: Key features and frequently asked questions (FAQs) answered

The Government of India has approved the PAN 2.0 Project, an initiative by the Income Tax Department, aimed at modernizing the Permanent Account Number (PAN) and Tax Deduction Account Number (TAN) systems.

Here’s everything you need to know about this new framework:

What is PAN 2.0?

PAN 2.0 is an e-governance initiative to streamline and unify all PAN and TAN-related services. It aims to enhance user experience, reduce paperwork, and strengthen data security. It aligns with India’s Digital India initiative for eco-friendly and efficient governance.

Key Features of PAN 2.0

1. Unified Portal
   • All PAN/TAN services integrated into a single platform, replacing the existing e-Filing, UTIITSL, and Protean portals.
   • Services include PAN issuance, updates, corrections, Aadhaar-PAN linking, reissuance, and online validation.

2. Eco-Friendly Processes
   • Transition to paperless operations to reduce the carbon footprint.

3. Free Services
   • Issuance of e-PANs and corrections will be free of charge.
   • Physical PAN cards available for ₹50 domestically and additional postage for international addresses.

4. Data Security Enhancements
   • Introduction of a PAN Data Vault for safeguarding sensitive taxpayer information.
   • Dynamic QR codes on PAN cards will display up-to-date information for validation.

5. Grievance Redressal
   • A dedicated helpline and call center to address taxpayer issues and queries.

6. PAN as a Common Identifier
   • PAN will function as a universal identifier across government digital systems for specified sectors.

Benefits for Taxpayers

• Faster processing times for PAN issuance and corrections.
• Centralized and transparent grievance handling.
• Simplified processes to eliminate delays and errors.

Frequently Asked Questions (FAQs)

1. Do I need to apply for a new PAN under PAN 2.0?
No. Existing PAN cards remain valid. Updates or corrections are optional and can be done free of cost after the rollout.

2. How will PAN 2.0 handle duplicate PANs?
Enhanced system logic will identify and deactivate duplicate PANs to ensure compliance.

3. Are QR codes a new feature?
No. QR codes have been included on PAN cards since 2017. PAN holders without QR codes can request an updated card under PAN 2.0.

4. Will the existing portals continue to operate?
No. PAN 2.0 will consolidate all services under a single portal for ease of access.

5. How do I update my PAN details?
Corrections such as name, address, or contact details can be made through Aadhaar-linked online services. Physical centers remain an option for other updates.

6. Will PAN serve as a business identifier?
Yes. For businesses required to hold PAN, it will act as a common identifier across specified government systems.

Implementation Timeline

The rollout of PAN 2.0 is expected soon, with comprehensive services to be available immediately after launch.

By reengineering taxpayer registration and management, PAN 2.0 aims to create a seamless, inclusive, and secure tax administration system for India. Stay tuned for further updates from the Income Tax Department.