PAN 2.0: The Centre has recently introduced the new Permanent Account Number (PAN) 2.0 Project, aimed at modernizing taxpayer registration through advanced e-governance. With a budget of Rs 1,435 crore, this initiative will revamp the PAN/TAN services to provide seamless digital interactions.
The goal of the project is to simplify and update the issuance and management of PAN and TAN, enhancing user-friendliness and efficiency. By consolidating multiple platforms/portals and improving services for PAN/TAN holders, this project will cater to the needs of taxpayers.
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What happens if you have one or more PAN cards
The CBDT has recently introduced a set of FAQs on the issuance of PAN 2.0 and guidelines on the new system. The PIB has clarified that an individual cannot hold more than one 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,” the guideline stated.
If you happen to find another PAN issued to you, it is important to promptly inform the income tax department and have it cancelled.
How to cancel your additional PAN card or cards
To request surrender of your PAN card online, please follow these steps:
Go to the NSDL website and fill out the ‘Changes or Correction in existing PAN data/ Reprint of PAN card’ application form.
In the contact details section of the form, check the box on the left margin and indicate any additional PANs you wish to surrender or cancel.
Upload all necessary documents, make the payment for the fees, and submit the form.
Upon successful payment, you will receive an acknowledgement slip.
Offline process
To request the surrender of your PAN card offline, you may complete Form 49A for Change or Correction in PAN. Specify the PAN number to be surrendered and submit the form to the nearest PAN center. It is advisable to retain a copy of the acknowledgment for future reference.
Alternatively, you can send a letter to the Assessing Officer of your jurisdiction. Determine the appropriate officer from the Income Tax e-filing portal. Provide your personal information, including your full name as per the PAN card, date of birth (or date of incorporation for companies or firms), PAN card number to be retained, and details of the duplicate PAN card being surrendered. Remember to retain the acknowledgment received for your records.
What happens if you don’t cancel the additional PAN cards
According to the Income-tax Act, it is not permissible for any individual to possess more than one PAN. Section 272B of the Income Tax Act authorizes income tax officers to impose a penalty of Rs 10,000 on individuals found to be in possession of more than one PAN card.
What is PAN 2.0?
The government has designated the PAN 2.0 Project as an e-Governance initiative aimed at re-engineering the business processes of taxpayer registration services through technology-driven transformation of PAN and TAN services. This project is being conducted to enhance the digital experience of taxpayers.
Key benefits of the PAN 2.0 Project include:
Consolidating all PAN/TAN-related services into a single portal for simplified user access.
Implementing eco-friendly paperless processes to reduce paperwork.
Issuing PAN free of cost and reducing processing times.
Enhancing security measures to protect personal and demographic data through a PAN Data Vault.
A dedicated call centre and helpdesk to address user queries and issues.
The PAN 2.0 project seeks to modernize the current system by consolidating all PAN/TAN services into a unified online portal, streamlining the process and reducing paperwork.
Platform Integration: Currently, PAN-related services are divided among three separate portals – the e-Filing Portal, UTIITSL Portal, and Protean e-Gov Portal. Under the PAN 2.0 Project, all services related to PAN and TAN will be centralized on a single portal managed by the Income Tax Department. This centralized portal will offer a range of services including PAN and TAN allotment, updates, corrections, Online PAN Validation (OPV), Know your AO, AADHAAR-PAN linking, PAN verification, e-PAN requests, and PAN card reprints.
Efficient Paperless Processes: The PAN 2.0 project will utilize cutting-edge technology to streamline and digitize the entire process, eliminating the need for physical paperwork.
Taxpayer Support: PAN allotment, updates, and corrections will be provided free of charge, with e-PAN being delivered to the applicant’s registered email address. Physical PAN cards can be requested by the applicant as needed. A nominal fee of Rs 50 (domestic) will be charged. For delivery of the card outside India, Rs. 15 + India post charges at actuals will be charged to the applicant.
What happens to your old PAN card?
Existing PAN cardholders can rest assured that they are not obligated to apply for a new PAN under the upgraded system. The current valid PAN cards will continue to be fully functional within PAN 2.0 unless holders explicitly request an update or correction. No new PAN card will be issued unless a specific request for updates or corrections is submitted.