PAN 2.0: How the new PAN card would affect you? Check details on how to apply or update

Sub : Eco

Sec: Fiscal Policy

Context:

The Cabinet Committee on Economic Affairs (CCEA) has approved the implementation of PAN 2.0, a major technology-driven overhaul of the Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN)

About PAN 2.0:

The PAN 2.0 project aims to modernize the entire process of taxpayer registration, improving service delivery, data accuracy, and cybersecurity measures.
The initiative involves a complete overhaul of the existing PAN system, revamping the IT infrastructure, and establishing PAN as a universal business identifier across specified government agencies’ digital platforms.
It is part of the broader Digital India initiative, which seeks to digitize and streamline government services.
The project will introduce a unified digital platform for PAN-related services and a QR-code feature on all new and existing PAN cards.

What happens to existing PAN cards:

Current PAN cards remain valid. The upgrade seeks to improve functionality without impacting the validity of existing cards.
However, taxpayers can opt to upgrade to the new system for free, gaining features like the QR code.