The Government of India has recently approved the PAN 2.0 project of the Income Tax Department. It will revamp the taxpayer registration system using which new individuals apply for a new PAN card. In this guide, let’s understand PAN 2.0 in detail and see what happens to existing PAN card holders.
PAN 2.0: Explained
The PAN 2.0 project has two major upgrades. The first change happens in the backend where the government will re-engineer the process of taxpayer registration services. This will result in an improved portal for applying for new PAN cards, accessing tax-related services, and more. The changes will apply to both PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number).
The application process for new PAN cards will be made fully digital. The new portal will be a single source of truth for integrated information across all systems related to PAN.
PAN 2.0 will also improve the security of PAN validation services. This will make PAN card authentication more secure in areas where PAN is used for KYC and other verification services. For example, usage of PAN at banks, NBFCs, financial institutions, lenders, employers, EPFO portal, background verification, etc.
#Cabinet approves #PAN 2.0 Project of the Income Tax Department. The financial implications for the PAN 2.0 Project will be Rs. 1,435 crore.
The PAN 2.0 Project enables technology-driven transformation of Taxpayer registration services
-Union Minister @AshwiniVaishnaw… pic.twitter.com/WcE9liwweT
— PIB India (@PIB_India) November 25, 2024
The second major change is on the PAN card itself. Union Minister Ashwini Vaishnaw confirmed that a QR code will be added to all PAN cards, including both new and old cards. This will streamline PAN cards to serve as a Common Business Identifier under the government’s Digital India Vision.
Newly issued PAN cards will have this QR code by default. Existing PAN holders will get an option to get a new card with the QR code without any cost. However, the government has not announced a specific timeline for the implementation of this new QR-based PAN card system.
The PAN 2.0 has been sanctioned by the Cabinet Committee of Economic Affairs (CCEA) at a of cost Rs 1435 crores. It is chaired by our Prime Minister Narendra Modi, and will also be regulated and supervised by the Income Tax Department.
Difference between PAN 2.0 and Normal PAN
PAN 2.0 is similar to the existing PAN card system. It will use the same ten-digit alphanumeric system for assigning unique PANs to new applicants. The only major difference is that PAN cards issued under PAN 2.0 will feature a unique QR code, similar to Aadhaar Cards.
The uses of the PAN system also remain unchanged. PAN will continue to serve as a single solution for all tax-related services for both individuals and businesses.
If you already have a PAN card, then you don’t have to upgrade to PAN 2.0. Your existing PAN card will remain valid and active. If your PAN card does not have a QR code, the Income Tax Department will provide an option to get a new PAN card with the same PAN, but with the added QR.
FAQs related to PAN 2.0
Will my existing PAN Number remain valid after PAN 2.0?
All existing PAN cards will remain valid after the implementation of PAN 2.0. Your PAN will remain unchanged.
Is Re-KYC needed for existing PAN holders after PAN 2.0?
No, Re-KYC is not needed for existing PAN holders. If you already have an active PAN, there is no need for any additional verification in PAN 2.0.
When can I apply for PAN 2.0?
The Government of India has not announced a timeline for the public release of PAN 2.0. If you want to apply for a new PAN card, you can do it right now from the existing PAN system. Your newly generated PAN will remain valid even after the launch of PAN 2.0.
Is PAN 2.0 for individuals or businesses?
PAN 2.0 is applicable to both individuals and businesses.
Does PAN 2.0 affect my GST number?
No, PAN 2.0 does not affect your GST number. You can continue to file GST using your existing PAN card.
The post What is PAN 2.0: Do you need a new PAN Card? appeared first on MySmartPrice.