Representative image of a PAN Card.
Credit: PTI Photo
Permanent Account Number (PAN) is inarguably the most important document for dealing with financial transactions. If you want to open a bank account, purchase insurance policy or do high-value financial transactions you are asked to provide your PAN details. It is mandatory for tax filing. Not just individuals, companies and other institutions are also required to have PAN in order to do financial transactions.
The PAN was first introduced in 1972. The Central government has decided to revamp the existing PAN setup with a new project called PAN 2.0. In this issue of DH Deciphers, Gyanendra Keshri explains the key features of PAN 2.0 and its impact on individuals and businesses.
What is PAN 2.0?
The PAN 2.0 can be called the second generation of PAN setup. It seeks to overhaul the existing system to streamline taxpayer registration and verification processes. The objective of the project is to enhance the quality of PAN services through adoption of latest technology. Through this project the Income Tax Department targets to consolidate all processes related to PAN allotment, updates and corrections. The TAN related services will also be merged with this project. Besides, PAN authentication/validation through online PAN validation service will be provided to user agencies such as financial institutions, banks, government agencies, central and state government departments.
How will PAN 2.0 be different from the existing setup?
At present, 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 the Income Tax Department. The unified portal will host all end-to-end services related to PAN and TAN like allotment, updates, correction, online PAN Validation, Know your AO, Aadhaar-PAN linking, verify your PAN, request for e-PAN, and request for re-print of PAN card.
Will people need to apply for a new card under PAN 2.0?
The existing PAN card holders are not required to apply for a new PAN under the upgraded system (PAN 2.0). This means your existing PAN cards will remain valid under PAN 2.0.
What do I need to do if I have a PAN without QR code?
Quick response (QR) code feature has been incorporated in PAN cards since 2017-18. The QR code helps in accessing the latest data present in the PAN database like photo, signature, name, father’s name, mother’s name and date of birth.
PAN holders having an old PAN card without QR code have an option to apply for a new card with QR code in the existing PAN 1.0 eco-system. It will continue in the new system PAN 2.0 as well.
According to information shared by the Income Tax Department, allotment, updates and correction of PAN will be done free of cost and e-PAN will be sent to the registered mail id. For a physical PAN card, the applicant has to make a request along with the prescribed fee of Rs 50 (domestic). For delivery of cards outside India higher charge is levied.