Winning Bizness Desk

Mumbai. The Income Tax Department has introduced a revamped PAN 2.0 Project, aimed at modernizing the Permanent Account Number (PAN) system with several upgrades. The initiative, approved by the Union Cabinet, is designed to make PAN a universal business identifier while improving security, accessibility, and efficiency.

Key Features of PAN 2.0

• Enhanced QR Code: New and existing PAN cards will feature upgraded QR codes for easier validation.
• Unified Portal:All in the Green
• Enhanced QR Code:PAN-related services currently available on multiple platforms will now be integrated into a single portal to streamline processes, reduce delays, and improve grievance redressal.
• PAN Data Vault: A secure system will be implemented for all entities handling PAN data, including banks, financial institutions, and government agencies, to ensure cybersecurity and data protection.
• Paperless Applications:All PAN applications, corrections, and updates will be fully online. e-PANs will be issued at no cost, while physical cards can be requested for ₹50 within India (additional postal charges for international delivery).

Continuity for Current PAN Holders

Existing PAN cards will remain valid under the new system. While upgrading to a PAN 2.0 card with enhanced features is optional, it is available free of cost for those interested. The 10-digit alphanumeric PAN will remain unchanged.

Simplifying Business Identification

One of the project’s major objectives is to consolidate various tax-related identifiers such as PAN, TAN (Tax Deduction and Collection Account Number), and TIN into a unified system. This change addresses industry demands for a single identifier, reducing the burden of managing multiple numbers for tax compliance. Union Minister Ashwini Vaishnaw highlighted the importance of this project, stating, “Efforts will be made to make PAN the common business identifier to simplify processes for businesses.”

Financial and Administrative Impact

The PAN 2.0 Project has a financial implication of ₹1,435 crore and includes a complete revamp of the IT backbone supporting the system. It is expected to enhance efficiency in linking transactions like tax payments, returns, and TDS/TCS credits with the Income Tax Department.

Benefits for Individuals and Businesses

For Individuals: The initiative will help eliminate duplicate PANs and streamline tax-related services. PAN holders without QR codes on their cards can now apply for upgraded versions. For Businesses: PAN 2.0 will simplify filing tax challans and returns by integrating PAN and TAN services into a single portal. With over 78 crore PANs already issued (98% belonging to individuals), the PAN 2.0 Project is set to bring widespread benefits, making PAN a stronger tool for identification and data consistency across sectors.