Do you need to change your PAN card under PAN 2.0? All queries answered

The central government has launched the PAN 2.0 project, revising the country’s current permanent account number (PAN) system. The Income Tax Department (ITD) plans to streamline and digitise the existing PAN system in India through PAN 2.0.

The PAN 2.0 project was approved by the Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi, on Monday, November 25.

PAN is a ten-digit unique alphanumeric number issued by the Income Tax Department (ITD). This number helps the department link all related transactions, including tax payments, TDS/TCS credits, returns of income, specified transactions, correspondence, and so on.

The present PAN system consists of three different platforms: the e-filing portal, the UTIITSL portal, and the Protean e-Gov portal. The e-filing portal is the online platform for filing tax returns. The UTIITSL portal is a website that provides services related to PAN cards, such as applying for a PAN card, updating PAN card details, linking PAN with Aadhaar, etc.

PAN 2.0 will integrate all these three portals into a single and unified portal. This platform will singlehandedly deal with all matters of PAN and TAN (Tax Deduction and Collection Account Number) such as application, updates, corrections, Aadhaar-PAN linking, re-issuance requests, and online PAN validation, the government said in a release on Tuesday. Through this, the tax department is trying to make the platform simple and user-friendly.

According to the government, the PAN database has 78 crore PANs and 73.28 lakh TANs.

With this new platform, the government has answered a set of questions to familiarize PAN cardholders with it and address their queries.

PAN 2.0: All Questions Answered

Question 1: What is PAN 2.0?

PAN 2.0 Project is an e-Governance project of ITD for re-engineering the business processes of taxpayer registration services. The objective of the project is to enhance the quality of PAN services by adopting the latest technology. Under this project, ITD is consolidating all PAN allotment/updation and corrections-related processes. The TAN-related services have also been merged with this project. Besides, PAN authentication/validation through online PAN validation service will be provided to user agencies such as financial institutions, banks, government agencies, central and state government departments, etc.

Question 2: How will PAN 2.0 be different from the existing setup?

a) Integration of Platforms: Presently, the PAN-related services are hosted on three different portals (e-Filing Portal, UTIITSL Portal and Protean e-Gov Portal). In the PAN 2.0 Project, all PAN/TAN-related services will be hosted on a single unified portal of ITD. The portal would host all end-to-end services related to PAN and TAN like allotment, updation, correction, Online PAN Validation (OPV), Know your AO, AADHAAR-PAN linking, verify your PAN, request for e-PAN, request for re-print of PAN card etc.

b) Use of technology for paperless processes: Complete online paperless process as against prevailing mode.

c) Taxpayer facilitation: Allotment/updation/correction of PAN will be done free of cost and e-PAN will be sent to the registered mail id. For physical PAN card, the applicant has to make a request along with the prescribed fee of ₹50 (domestic). For delivery of card outside India, Rs. 15 + India post charges at actuals will be charged to the applicant.

Question 3: a) Will existing PAN CARD holders be required to apply for a new PAN under the upgraded system?

b) Do you need to change your PAN number?

No. The existing PAN card holders are not required to apply for new PAN under the upgraded system (PAN 2.0).

Question 4: Do people have an option to get corrections done on PAN, like name, spellings, address change etc?

Yes. If existing PAN holders want to make any correction/updation of their existing PAN details such as email, mobile or address or demographic details such as name, date of birth, etc., they can do so free of cost after the PAN 2.0 Project commences. Till then, PAN holders can avail of the Aadhaar-online facility for updation/correction of email, mobile and address free of cost by visiting the below URLs:

https://www.onlineservices.nsdl.com/paam/endUserAddressUpdate.html

https://www.pan.utiitsl.com/PAN_ONLINE/homeaddresschange

In any other cases of updation/correction of PAN details, the holders can do so using the existing process either by visiting physical centres or applying online on a payment basis.

Question 5: Do I need to change my PAN card under the PAN 2.0?

No. The PAN card will not change unless the PAN holders want any update/correction. The existing valid PAN cards will continue to be valid under PAN 2.0.

Question 6: a) A lot of people have not changed their addresses and are continuing with old address. How will the new PAN be delivered?

b) When will the new PAN Card be delivered?

No new PAN card will be delivered unless the PAN holder requests it owing to any updation/correction in their existing PAN. The PAN holders who want to update their old address can do so free of cost using an Aadhaar-based online facility by visiting the below URLs:

https://www.pan.utiitsl.com/PAN_ONLINE/homeaddresschange

https://www.onlineservices.nsdl.com/paam/endUserAddressUpdate.html

Accordingly, the address will be updated in the PAN database.

Question 7: a) If new PAN cards are QR code enabled, will older ones continue functioning as they are?

b) What will the QR code help us with?

The QR code has been incorporated in PAN cards since 2017-18. The same will be continued under the PAN 2.0 project with enhancements such as a dynamic QR code that displays the latest data present in the PAN database. PAN holders who have an old PAN Card without a QR code have the option to apply for a new card with a QR code in the existing PAN 1.0 ecosystem as well as in PAN 2.0.

The QR code helps in validating the PAN and PAN details.

Presently, a specific QR reader application is available to verify QR code details. The reader application displays complete details, such as a photo, signature, name, father’s / mother’s name, and date of birth.

Question 8: What is – the “Common Business identifier for all business-related activities in specified sectors”?

In the Union Budget 2023, it was announced that for the business establishments required to have a PAN, the PAN will be used as the common identifier for all digital systems of specified government agencies.

Question 9: Whether Common Business identifier will replace the existing unique taxpayer identification number i.e. PAN?

No. PAN itself will be used as a Common Business identifier.

Question 10: What does the “Unified Portal” mean?

In the PAN 2.0 Project, all PAN/TAN-related services will be hosted on a single unified portal of ITD. The portal will have all end-to-end services related to PAN and TAN like allotment, updation, correction, Online PAN Validation (OPV), Know your AO, AADHAAR-PAN linking, verify your PAN, request for e-PAN, request for re-print of PAN card etc. This aims to simplify the processes and avoid delays in PAN services delivery, delays in redressal of grievances, etc., caused by the presence of various modes of receipt of applications (online eKYC/online paper mode/offline).

Question 11: For people holding more than one pan, how will you identify and weed out the extra PAN ?

As per the provisions of the Income Tax Act of 1961, no person can hold more than one PAN. If a person holds more than one PAN, he/she is obliged to bring it to the attention of the Jurisdictional Assessing officer and get the additional PAN deleted/deactivated.

In PAN 2.0, improved systems logic for identifying potential duplicate requests for PAN and centralized and enhanced mechanisms for resolving the duplicates would minimize the instances of one person holding more than one PAN.