The Indian government has introduced the PAN 2.0 project, adding new features like QR codes to enhance user experience and security. Union Minister Ashwini Vaishnav announced the upgrade, assuring that the existing PAN cards will remain valid, addressing taxpayers’ concerns.
The Income Tax Department released a detailed FAQ on November 26, 2024, clarifying that old PAN cards will continue to function even after the launch of PAN 2.0. Applying for the new PAN is optional.
What is the PAN 2.0 project?
PAN 2.0 is a government initiative to improve the digital ecosystem of taxpayer services, aiming for a more efficient system for PAN and TAN registrations. The project includes integrating core services with PAN verification while establishing PAN as a universal digital identifier across government platforms.
Key benefits of PAN 2.0:
- Enhanced services: Faster access to digital facilities with better quality.
- Unified data system: A single, reliable source for taxpayer information.
- Environment-friendly process: Paperless and optimized operations.
- Improved security: Stronger infrastructure for safeguarding data.
Features of QR Code PAN
The QR Code PAN, introduced under PAN 2.0, brings significant advancements over the traditional PAN card.
- Free issuance: The new QR Code PAN will be provided free of cost to taxpayers.
- Comprehensive details: The QR code will store complete taxpayer information.
- Greater security: Ensures better protection of personal and financial data.
- Improved accessibility: Digital-first services for ease of use.
PAN card facts and current statistics
PAN (Permanent Account Number) has been a part of India’s tax system since 1972, issued under Section 139A of the Income Tax Act. It serves as a 10-digit alphanumeric identity for financial transactions.
Current PAN statistics:
- Issued PANs: Over 78 crore.
- Coverage: PANs cover 98% of the eligible population in India.
The Income Tax Department uses PAN numbers to monitor financial transactions and ensure compliance with tax regulations.
What taxpayers need to know
The PAN 2.0 upgrade does not render old PAN cards invalid. Taxpayers can continue using their existing cards or opt for the new QR Code PAN for added benefits. This upgrade ensures digital accessibility and modernizes tax compliance systems.
With more streamlined processes and secure digital services, PAN 2.0 aims to revolutionize the taxpayer experience in India.
