The Cabinet Committee on Economic Affairs (CCEA), under chairmanship of Prime Minister Narendra Modi approved and announced PAN 2.0 Project on November 25, 2024. As per the Government Press Release, PAN 2.0 Project is an e-Governance project for digitizing the taxpayer registration system (Digital PAN/TAN services). The Government aims at spending a total of Rs. 1,435 crores for the project as per the press release. According to CBDT, PAN 2.0 Project is aimed at making process of issuing and managing PAN and TAN simpler, more user-friendly and efficient.
PAN 2.0 Project is a one-stop platform which will deal with various issues relating to PAN and TAN at one place such as PAN application, PAN updates & corrections, Aadhar-PAN linking and PAN validation etc. PAN 2.0 Project will not only ease PAN/TAN issuance and updation process but also make it eco-friendly, paperless and establish PAN as a common identifier for all digital systems of various Government agencies.
According to Press Release by CBDT, PAN-related services are presently spread across three different platforms namely: e-filing portal, UTIITSL Portal, and Protean e-Gov Portal. Under PAN 2.0 Project, all these services will be integrated into a single unified portal. This will help in simplifying PAN/TAN issuance process, eliminate delays, and improve grievance redressal mechanisms.
Key Features of PAN 2.0:
- A single and unified portal for all PAN/TAN related services to simplify access for users
- Eco-friendly paperless process to reduce paperwork
- PAN will be issued free of cost, with quicker processing times
- Protection of personal and demographic data using enhanced security measures including a PAN Data Vault
- A dedicated call centre and help desk to address user queries and issues
The CBDT has also issued Frequently Asked Questions (FAQ) on the PAN 2.0 Project. These are as below:
FREQUENTLY ASKED QUESTIONS (FAQS) ON PAN 2.0 PROJECT
1. What is PAN 2.0?
PAN 2.0 Project is an e-Governance project of Income Tax Department aiming at re-engineering the business processes of taxpayer registration services like PAN/TAN. The objective of the project is to enhance the quality of PAN services through adoption of latest technology. Under this project, the Income Tax Department will consolidate all processes related to PAN allotment/updation and corrections. The TAN related services are also merged with this project. Besides, PAN authentication/validation through online PAN validation service will be provided to user agencies such as financial institutions, banks, government agencies, central and state government departments etc.
2. How PAN 2.0 will be different from existing setup?
- Integration of Platforms: Presently, the PAN related services are hosted on three different portals (e-Filing Portal, UTIITSL Portal and Protean e-Gov Portal). In the PAN 2.0 Project, all PAN/TAN related services will be hosted on a single unified portal of ITD. The said Portal would host all end-to-end services related to PAN and TAN like allotment, updation, correction, Online PAN Validation (OPV), Know your AO, AADHAAR-PAN linking, verify your PAN, request for e-PAN, request for re-print of PAN card etc.
- Comprehensive use of technology for paperless processes: Complete online paperless process as against prevailing mode.
- Taxpayer facilitation: Allotment/updation/correction of PAN will be done free of cost and e-PAN will be sent to the registered mail id. For physical PAN card, the applicant has to make a request along with the prescribed fee of Rs 50 (domestic). For delivery of card outside India, Rs. 15 + India post charges at actuals will be charged to the applicant.
3. Whether existing PAN CARD Holders will be required to apply for new PAN under the upgraded system?
OR
Do you need to change your PAN number?
No. The existing PAN card holders are not required to apply for new PAN under the upgraded system (PAN 2.0).
4. Do people have an option to get corrections done on PAN, like name, spellings, address change etc?
Yes. If existing PAN holders want to make any correction/updation of their existing PAN details such as email, mobile or address or demographic details such as name, date of birth etc., they can do so at free of cost after the PAN 2.0 Project commences. Till the time the PAN 2.0 project is rolled-out, the PAN holders can avail the Aadhaar based online facility for updation/correction of email, mobile and address free of cost by visiting the below URLs:
- https://www.onlineservices.nsdl.com/paam/endUserAddressUpdate.html
- https://www.pan.utiitsl.com/PAN_ONLINE/homeaddresschange
In any other cases of updation/correction of PAN details, the holders can do so using the existing process either by visiting physical centres or applying online on payment basis.
5. Do I need to change my PAN card under the PAN 2.0?
No. The PAN card will not be changed unless the PAN holders want any updation/correction. The existing valid PAN cards will continue to be valid under PAN 2.0.
6. A lot of people have not changed their addresses and are continuing with old address. How will the new PAN be delivered?
OR
By when will the new PAN Card get delivered?
No new PAN card will be delivered unless the PAN holder requests for it owing to any updation/correction in their existing PAN. The PAN holders who want to update old address, they can do so free of cost using Aadhaar based online facility by visiting the below URLs:
- https://www.pan.utiitsl.com/PAN_ONLINE/homeaddresschange
- https://www.onlineservices.nsdl.com/paam/endUserAddressUpdate.html
Accordingly, the address will be updated in the PAN database.
7. If new PAN cards are QR code enabled, will older ones continue to function as it is?
OR
What will QR code help us with?
- The QR code is not a new feature, and it has been incorporated in the PAN cards since 2017-18. The same will be continued under PAN 2.0 project with enhancements (dynamic QR code which will display latest data present in PAN database). PAN holders having an old PAN Card without QR code have an option to apply for a new card with QR code in existing PAN 1.0 eco-system as well as in the PAN 2.0.
- The QR code helps in validating the PAN and PAN details.
- Presently, a specific QR reader application is available for verification of QR code details. On reading through the reader application, complete details, i.e., photo, signature, Name, Father’s Name / Mother’s Name and Date of Birth is displayed.
8. What is - the "Common Business identifier for all business-related activities in specified sectors"?
In the Union Budget 2023, it was announced that for the business establishments required to have a PAN, the PAN will be used as the common identifier for all digital systems of specified government agencies.
9. Whether Common Business identifier will replace the existing unique taxpayer identification number i.e. PAN?
No. PAN itself will be used as a Common Business identifier.
10. What does the “Unified Portal” mean?
Presently, the PAN related services are hosted on three different portals. In the PAN 2.0 Project, all PAN/TAN related services will be hosted on a single unified portal of ITD. The said Portal would host all end-to-end services related to PAN and TAN like allotment, updation, correction, Online PAN Validation (OPV), Know your AO, AADHAAR-PAN linking, verify your PAN, request for e-PAN, request for re-print of PAN card etc., thereby further simplifying the processes, and avoiding delay in PAN services delivery, delay in redressal of grievances etc. caused by the presence of various modes of receipt of applications (online eKYC/online paper mode/offline).
11. For people holding more than one pan, how will you identify and weed out the extra PAN ?
As per the provisions of Income-tax Act, 1961, no person can hold more than one PAN. In case a person holds more than one PAN, he/she is obliged to bring it to notice of Jurisdictional Assessing officer and get the additional PAN deleted/de-activated.
In the PAN 2.0, with the improved systems logic for identification of potential duplicate requests for PAN and centralized and enhanced mechanism for resolving the duplicates would minimize the instances of one person holding more than one PAN.