The government’s latest project, PAN 2.0, is designed to overhaul the existing PAN/TAN system, enhancing efficiency and convenience for taxpayers. This initiative aims to modernise the procedures linked to Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) services. The primary goal is to expedite, streamline, and fortify the process of taxpayer registration, ensuring it is more efficient, intelligent, and secure.
The initiative described involves a significant transformation of the current PAN system, encompassing the reorganization of the IT infrastructure and positioning PAN as a universal business identifier on designated government digital platforms.
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The overarching goal of the project is to unify crucial PAN/TAN functions on a consolidated, digital platform aligned with the Digital India vision. This central system is designed to provide a one-stop portal for all PAN-related services, coupled with enhanced cybersecurity protocols to ensure the protection of user data.
What happens to NRIs
Non-resident Indians (NRIs) must obtain a Permanent Account Number (PAN) if they need to file an income tax return or engage in financial transactions that require PAN quoting. To apply for a PAN as an NRI, one must fill out Form No. 49A and submit it with the necessary documents and fees at a PAN application center operated by UTIITSL or Protean (formerly NSDL eGov).
Alternatively, NRIs can apply for PAN online through the UTIITSL or Protean websites.
Do NRIs need a new PAN card under new system
Union Minister Ashwini Vaishnaw announced that there is no need for individuals to obtain new Permanent Account Numbers (PAN) as existing PAN cards will continue to remain valid.
He emphasized that citizens will not be required to seek new PAN numbers and assured that the upgrades being implemented aim to improve functionality while ensuring the continued validity of the current PAN cards.
How to update the old PAN
Any Non-Resident Indian (NRI) seeking a new Permanent Account Number (PAN) card must provide a copy of their passport along with the PAN application form to verify their identity. Additionally, the NRI must submit one of the following documents along with the PAN application form as proof of address:
a) Copy of passport; OR
b) Copy of the bank account statement from the country of residence; OR
c) Copy of NRE bank account statement that displays at least two transactions within the last six months, and it must be authenticated by the Indian Embassy/Consular office/high commission, or Apostille, or by the bank manager where the account is maintained (the applicant may be a joint holder).
Overseas Address
NRIs applicants can indicate their foreign address as their residential or office address if they do not possess any address in India.
Application Fees
The processing fee for a PAN application will be determined based on the communication address provided by the applicant. The processing fee for PAN is Rs 994 (inclusive of application fees and dispatch charges) when the communication address is outside of India.
Updating info in PAN card
When filling out the ‘Request for New PAN Card or/and Changes or Correction in PAN Data’ form, it is important to adhere to all guidelines followed while filling fields such as name, address, signature, etc., in the PAN application form. This includes ensuring accuracy and completeness of the information provided.
There are two options for submitting this form: (1) Offline mode, where the application can be submitted at the PAN application center of UTIITSL or Protean (formerly NSDL eGov), or (2) Online mode, where the application can be made through the website of UTIITSL or Protean (formerly NSDL eGov). The applicant must submit the application along with necessary documents and the applicable fees.
Holding more than more card
The Central Board of Direct Taxes (CBDT) has recently released a new set of Frequently Asked Questions (FAQs) regarding the issuance of PAN 2.0 and guidelines for the updated system. The guidelines clearly say that as per the provisions of the Income-tax Act, 1961, an individual is not allowed to possess multiple PAN cards.
If someone does have more than one PAN card, they must inform their Jurisdictional Assessing Officer and have the extra PAN card deleted or deactivated. The new PAN 2.0 system includes improved logic for identifying potential duplicate PAN requests, along with a centralized and enhanced mechanism for resolving any duplicates. These enhancements are expected to reduce the occurrence of individuals having multiple PAN cards.