New Delhi : Following the Cabinet Committee on Economic Affairs’ approval of the PAN 2.0 project, the Income Tax Department (ITD) has issued a detailed clarification on the new system. Aimed at simplifying taxpayer services, PAN 2.0 will leverage the latest technology to enhance the efficiency of the taxpayer registration process. In a bid to provide clarity, the ITD has released a list of 11 frequently asked questions (FAQs) to address key aspects of the system.
1. What is PAN 2.0?
The PAN 2.0 Project is an e-Governance initiative by the Income Tax Department designed to re-engineer and streamline the business processes associated with taxpayer registration. The project aims to improve the quality of PAN services by integrating all PAN-related operations, including allotment, updation, and corrections, onto a unified platform. The system will also offer PAN authentication and validation services to financial institutions, government agencies, and other user organizations.
2. How will PAN 2.0 be different from the existing system?
- Integration of Platforms: Currently, PAN services are spread across three different portals (e-Filing, UTIITSL, and Protean e-Gov). Under PAN 2.0, all PAN/TAN-related services will be consolidated onto a single portal managed by the ITD.
- Paperless Process: PAN 2.0 introduces a completely paperless, online process for all services, making it more efficient and reducing the need for physical paperwork.
- Taxpayer Facilitation: Services like PAN allotment, updation, and corrections will be free of charge, and e-PANs will be sent directly to the registered email addresses. For physical PAN cards, a nominal fee of ₹50 will be charged for domestic delivery, and ₹15 plus actual postal charges for international delivery.
3. Do existing PAN cardholders need to apply for a new PAN under PAN 2.0?
No. Existing PAN cardholders will not need to apply for a new PAN under the upgraded system. Their current PAN cards will remain valid.
4. Can corrections be made to the existing PAN card (e.g., name, address, or other details)?
Yes. PAN holders can update or correct their PAN details such as email, mobile, address, and demographic information (name, date of birth, etc.) free of cost once PAN 2.0 is implemented. For now, holders can use the Aadhaar-based online facility to make updates for free.
5. Do I need to change my PAN card under PAN 2.0?
No. If no updates or corrections are required, the existing PAN card will continue to be valid under PAN 2.0.
6. How will PAN cards be delivered if the address has changed?
New PAN cards will only be issued if the holder requests an update or correction. Those who need to update their address can use the Aadhaar-based online facility free of cost through designated portals.
7. Will older PAN cards without QR codes still work?
Yes. The QR code feature has been included in PAN cards since 2017-18. PAN cards issued under PAN 2.0 will have a dynamic QR code, which can be used to verify PAN details. Older cards without QR codes can still be used, but holders have the option to apply for a new card with the QR code.
8. What is the “Common Business Identifier” for business-related activities?
Announced in the 2023 Union Budget, the Common Business Identifier (CBI) will use PAN as the unique identifier for businesses dealing with specified government agencies, streamlining business processes and making it easier to track business transactions.
9. Will the Common Business Identifier replace PAN?
No. PAN will continue to be used as the Common Business Identifier for businesses as well.
10. What is the “Unified Portal”?
The Unified Portal will host all PAN/TAN-related services, making it a single point of access for all services such as PAN allotment, correction, Aadhaar-PAN linking, and more. This integration aims to reduce delays and improve the efficiency of PAN services.
11. How will duplicate PANs be handled?
According to the Income Tax Act of 1961, no individual can hold more than one PAN. PAN 2.0 will enhance the identification and deactivation of duplicate PANs, with an improved system for detecting duplicate requests.
With the launch of PAN 2.0, the Income Tax Department is set to modernize taxpayer services, making the entire PAN process more user-friendly, transparent, and efficient. The new system is expected to significantly enhance the ease of doing business in India, benefiting both individuals and organizations.