Cabinet Approves PAN 2.0: Do You Need To Apply For A New PAN Card?

The Indian government introduced the PAN 2.0 Project on Monday, which is an upgraded version of the current Permanent Account Number (PAN) system.

This advanced system is said to be aimed at making taxpayer registration easier, more accessible, and more secure as well. With a budget of Rs 1,435 crore, PAN 2.0 will revamp the digital infrastructure of the Income Tax Department, which may provide an unlined experience for individuals and businesses.

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So, what’s new in PAN 2.0?

For starters, PAN cards will now feature an embedded QR code for enhanced functionality and security. This QR code will enable faster and more secure transactions and will remain the single source of truth and data consistency.

Additionally, PAN will become a universal identifier for businesses across specified government digital systems, making it easier for them to interact with government agencies.

The PAN 2.0 project will also re-engineer taxpayer registration processes, consolidating PAN/TAN services into a unified platform.

This means that taxpayer registration services will become faster and more user-friendly. Existing PAN holders can upgrade to PAN 2.0 at no additional cost, and their existing PAN cards will remain valid.

PAN 2.0 will also focus on being eco-friendly, cost-efficient, secure, and fast. This project aligns with the government’s Digital India vision, making it easier for businesses to comply with regulations and operate smoothly.

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So, do you need to apply for a new PAN card?

No, you don’t need to apply for a new PAN card. Your existing PAN card will remain valid and the upgrades, including the QR code feature, will be made available without any action from current cardholders.

PAN 2.0 will consolidate the existing ecosystem and introduce efficient, eco-friendly processes for all users. So far, 78 crore PAN cards have been issued with 98 percent belonging to individuals.