The central government has introduced PAN 2.0, an enhanced version of the Permanent Account Number (PAN) system, with the objective of improving taxpayer services in India. PAN 2.0 is an e-governance project designed to modernise the taxpayer registration process through technology. This updated initiative will involve a complete overhaul of the existing PAN/TAN 1.0 system, simplifying both essential and auxiliary PAN/TAN functions in addition to PAN validation services.
“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 Allotment/updation/correction of PAN will be done free of cost and e-PAN will be sent to the registered mail id,” the CBDT in a notification.
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The Central Board of Direct Taxes has issued a set of FAQs a day after the Cabinet Committee on Economic Affairs (CCEA) cleared a Rs 1,400 crore project.
Here are the top points:
> 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.
> The department has confirmed that QR codes are now integrated into the project, facilitating the validation of PAN and other details.
> Furthermore, the upgrade initiative aims to streamline all PAN and TAN related services currently available on separate portals (e-filing portal, UTIITSL, and Protean e-Gov) onto the income tax department portal.
> This consolidation will enable end-to-end services ranging from application submission to allotment, online validation, linking with Aadhaar, and updating.
> The transition to a singular portal will ensure a seamless and paperless process for users.
> 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.
> The existing PAN card holders are not required to apply for new PAN under the upgraded system (PAN 2.0).
> 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:
i. https://www.onlineservices.nsdl.com/paam/endUserAddressUpdate.html
ii. 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.
> New PAN card will not 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:
i. https://www.pan.utiitsl.com/PAN_ONLINE/homeaddresschange
ii. https://www.onlineservices.nsdl.com/paam/endUserAddressUpdate.html
Accordingly, the address will be updated in the PAN database.
QR code functionality
> The CBDT clarified that 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 ecosystem 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.
PAN card as Common Business identifier
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.