Everything You Need to Know About the New PAN 2.0 Initiative

On November 26, the Central Board of Direct Taxes (CBDT), part of the finance ministry, shared details about a new initiative called PAN 2.0. This project is aimed at making the process of getting and managing a PAN card (Permanent Account Number) easier and more modern.

If you already have a PAN card, you won’t need to get a new one. The CBDT said that they have been using QR codes on PAN cards since 2017-2018, and now they’re enhancing this feature with a dynamic QR code, which can help check your latest PAN information easily. If your current PAN card doesn’t have a QR code, you can choose to apply for a new card with a QR code either through the current PAN system or the new PAN 2.0 system.

The PAN 2.0 project will cost about ₹1,435 crore and is expected to launch in 2025, though the exact date isn’t set yet. Here are some key points about how PAN 2.0 will differ from the current system:

1. All Services in One Place: Right now, PAN services are available on three different websites. Under PAN 2.0, all services will be on a single website run by the Income Tax Department. This will let you handle everything related to your PAN and TAN (Tax Deduction Account Number) in one place, like applying, correcting details, and linking your Aadhaar.

2. Paperless Process: You’ll be able to do everything online without needing to send in documents on paper.

3. Free Corrections: You can update or correct your PAN details for free. You’ll need to pay ₹50 if you want a physical PAN card. If you live outside India, there will be additional charges.

4. Updating Old Information: If you want to change your old address, you can do it for free using your Aadhaar card.

5. Using PAN for Business: Your PAN will also serve as a common identifier for businesses in certain sectors, as mentioned in the 2023 Union Budget.

6. No Duplicate PANs: You can only have one PAN card. If you find that you have more than one, you need to tell the tax office, so they can remove the extra ones.

By making these changes, the government hopes to improve the processing of PAN cards and reduce issues with multiple PAN cards being issued.