PAN 2.0: Key Features, Benefits, QR Code Details, Who Should Apply & When?

On 25 November 2024, the Cabinet Committee on Economic Affairs (CCEA) approved the PAN 2.0 Project of the Income Tax Department with a financial outlay of Rs. 1,435 crore. This project aims to upgrade the PAN card with QR code to create a fully paperless and online system in India. 

Know all about the PAN 2.0 project details, PAN card 2.0 features, PAN card 2.0 QR code, PAN card 2.0 benefits, and PAN card 2.0 apply.

What is PAN 2.0?

PAN card 2.0 is an e-governance project to re-engineer the taxpayer registration services process through a technology-driven transformation of PAN or TAN services. It aims to provide taxpayers with a seamless, enhanced digital experience. 

PAN 2.0 is a comprehensive upgrade to the Permanent Account Number (PAN) system, which will integrate core and non-core PAN or TAN services and PAN validation services into a paperless, unified platform, aligning with the government’s Digital India programme.

The PAN 2.0 project resonates with the government's vision enshrined in Digital India by allowing PAN to be used as a common identifier for all digital systems of specified government agencies. It is expected to cater to the business’s demands, focus on effective grievance redressal, and give better cybersecurity.

Key Features of PAN 2.0

• The PAN 2.0 initiative will update the current PAN system/ framework with modern, advanced technology to improve operational efficiency.
• The PAN card 2.0 will integrate QR codes, enabling verification and quick access to taxpayer details.
• A single unified digital platform will consolidate all PAN-related services, enabling easy access to users for managing their accounts.
• Cybersecurity measures will be improved and strengthened to safeguard taxpayer data against unauthorized access and breaches.
• It aims to reduce environmental impact and promote eco-friendly operations by transitioning to a paperless system, which will result in a cut in operational costs.
• A PAN data vault will provide secure storage systems for entities using PAN-related data.

Changes/ Upgrades from Existing PAN Card to PAN 2.0

PAN 2.0 introduces enhanced functionalities in the existing PAN card. One prominent update in the existing PAN card is the QR code feature, which facilitates easier data access, verification and quicker eco-friendly services. The PAN 2.0 will contain a QR code for quick scans.

The upgrade from the existing PAN card to PAN 2.0 will streamline taxpayer registration and verification through a paperless and secure digital system. However, the existing PAN cards will remain valid. The upgrade of PAN cards to PAN 2.0 will be free of cost.

Benefits of PAN 2.0

The PAN 2.0 Project has significant benefits, including:

• Speedy service delivery and ease of access with improved quality
• Data consistency with a single source of truth
• Eco-friendly processes and cost optimization
• Optimization of security and infrastructure for greater agility

Who Needs to Apply for PAN Card 2.0?

Citizens having a PAN card can apply for a new PAN card 2.0 through the unified portal, which is yet to be launched by the government. They can upgrade their existing PAN card to PAN 2.0 with new QR code features at no additional cost. However, the government has yet to announce the launch date for PAN 2.0. Thus, citizens can apply for PAN card 2.0 once the government launches the new PAN card and the unified portal for applying for PAN card 2.0 free of cost. The portal will also prioritize addressing PAN card-related grievances.

The PAN 2.0 upgrade aims to enhance functionality without affecting the validity of the current PAN cards. The PAN 2.0 initiative is expected to improve taxpayer services and strengthen the digital infrastructure significantly.

The PAN 2.0 Project promises to make India’s tax system more secure, efficient, and accessible, benefiting individuals and businesses. It aims to make PAN a common identifier for all digital interactions across government systems, ensuring ease of compliance and uniformity. The project will also feature a centralized portal for all PAN-related services and improved cybersecurity to protect user data.