PAN 2.0: The Central government has introduced PAN 2.0 as part of a modernisation initiative to enhance the traditional Permanent Account Number (PAN) system. The PAN, a 10-digit alphanumeric identifier assigned by the Income Tax Department to taxpayers, is a distinctive number.
Aligned with the Digital India campaign, the government aims to position PAN 2.0 as an electronic governance project that utilises technology to streamline the taxpayer registration process. This upgrade will involve a thorough overhaul of the existing PAN/TAN 1.0 system, simplifying primary and secondary PAN/TAN functions, along with PAN validation services.
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The upgraded PAN cards will include QR codes. The Income Tax department has clarified that existing PAN cards with the old white color or smart card design lacking a QR code will remain valid.
However, taxpayers in possession of these older designs are encouraged to upgrade to the new PAN design featuring a QR code for added convenience and security.
The updated PAN card with a QR code that is highly resistant to duplication or tampering. Encrypted personal information is embedded within the QR code, accessible only to authorized individuals with specialised software.
Vikram Babbar, Partner, EY Forensic & Integrity Services – Financial Services, said: “As the new PAN card comes with a QR code it is more difficult to duplicate or tamper with. The QR code contains encrypted personal data, which can only be read by authorized personnel using specific software. This reduces the risk of personal information being misused by fraudsters.”
The inclusion of a QR code on the new PAN card enables fast and efficient identity verification. By scanning the QR code, verification occurs almost instantaneously, serving as a protection measure against impersonation and identity theft. This feature is particularly beneficial during financial transactions as it reduces the risk of errors and fraudulent activity.
“The introduction of an upgraded PAN design featuring a QR code marks a significant step in combating fraud and enhancing compliance. QR codes add an essential layer of security and authenticity because it contains encrypted details of the cardholders. This makes duplication or forgery of PAN cards exceedingly difficult, as the QR code can only be decoded by specific software, ensuring the card is legitimate and linked to its rightful owner,” said Ankit Ratan, CEO & Co-founder, Signzy, told the Economic Times.
“The upgraded PAN card with QR codes introduces advanced security features that significantly reduce the risk of fraud. For individuals with older white-coloured PAN cards upgrading to the new version enhances protection by embedding secure, scannable data within the QR code, making the card more resistant to tampering or duplication,” said Mohit Chobey, Director, Digital, Trust and Transformation, Forvis Mazars.
What the govt said about QR codes
In the list of FAQs, the government mentioned:
(i) The QR code is not a new feature and has been incorporated into PAN cards since 2017-18. The same will be continued under the PAN 2.0 project with enhancements, such as a dynamic QR code that will display the latest data present in the PAN database. PAN holders with an old PAN card without a QR code have the option to apply for a new card with a QR code in the existing PAN 1.0 ecosystem as well as in the PAN 2.0.
(ii) The QR code helps validate the PAN and PAN details.
(iii) Currently, a specific QR reader application is available for verifying QR code details. When read through the reader application, complete details including photo, signature, name, father’s/mother’s name, and date of birth are displayed.
(iv). The QR code facilitates validation of PAN details, ensuring authenticity.
(v). A dedicated QR reader application is available to verify details. When scanned, it displays the holder’s photo, signature, name, parents’ names, and date of birth.