Recently, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the PAN 2.0 project. Rs. 1,435 crore has been allocated for the same project by the government, which aims to overhaul the existing PAN/TAN system to rectify the efficiency and assessee convenience.
As per Union Minister Ashwini Vaishnaw, a PAN card is essential for us which is significant for the middle class and small businesses. The present system will be upgraded and the digital backbone will be brought in a new way.
Indian Government’s PAN 2.0 Project
PAN 2.0 project is a complete upgrade of the Permanent Account Number (PAN) system which concentrates on making a facilitated, digital experience for assessees. The same initiative will combine core and non-core PAN/TAN services into a unified, paperless platform that aligns with the government’s Digitial India program.
The system would have the feature of a centralized portal for all PAN pertinent services and improved cybersecurity to safeguard the user’s information.
The updated system has the motive to make the PAN a common identifier for the digital interactions for the system of the government assuring the uniformity and simplicity of compliance.
Major Key Features of PAN 2.0 Project
Here we have mentioned some essential key features of the new PAN 2.0 project for taxpayers:
QR Code Integration
QR codes will be the new feature in PAN cards, allowing faster access and verification of assessee information.
Unified portal
A single digital platform would consolidate all PAN/TAN-related services which makes it simpler for users to access and handle their accounts.
Eco-Friendly Operations
The government via transitioning to a paperless system has the motive to lessen the environmental impact and reduce the costs of operation.
System Modernization
The same initiative will update the existing framework with advanced technology to enhance operational efficiency.
Enhanced Protection
To secure the data of the assessee against breaches and unauthorized access cybersecurity measures shall be tightened.
Important Advantages for Taxpayers
As per the official, PAN 2.0 project shall propose distinct benefits to assessees along with-
- Data precision: The rectified data consistency and some errors in the data of the assessee
- Cost Savings: Free-of-charge upgrade will be there for the current PAN cardholders
- Sustainability: The project comprises eco-friendly practices by reducing the paper usage
- Faster Service Delivery: Lessen the processing times for the PAN pertinent services
The system will concentrate on the grievance redressal, addressing the issues of the taxpayer effectively.
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Is There a Need for a New PAN Card?
As per Union Minister Ashwini Vaishnaw, the current PAN cards will stay valid. He mentioned that the citizens will not required to apply for the new PAN numbers. The upgrade has the motive to improve the operationally without affecting the existing cards’ validity.
The assessees will have the choice to upgrade their cards with the updated QR code features at zero cost.
PAN 2.0 asks to address such limitations by re-engineering business procedures for the assessee registration services. It aligns with the efforts of the government under the Digital India programme for e-governance and digital transformation.
“The Permanent Account Number (PAN) has long been a cornerstone of India’s financial and administrative systems, connecting individuals and businesses to vital economic activities while promoting financial transparency and compliance. As a key enabler of the digital economy, PAN has transformed into a gateway for essential services, making it indispensable in daily life. To enhance user-friendliness and align with technological advancements, the Cabinet has recently approved PAN 2.0, a step forward in redefining how PAN serves India’s evolving digital and financial landscape.” Read Press Release
The same upgrade has the potential to make the tax system of India more efficient, secure, and accessible, benefiting individuals and businesses alike. The assessees are motivated to stay notified via official updates from the Income tax department.
