PAN 2.0: What is the project, why you need to upgrade your PAN card

With the upgrade, PAN is expected to go a beardown root of recognition and accusation for the authorities, arsenic it is already linked to the different recognition fig of Aadhaar.

The existing PAN holders, which are astir 78 crore successful number, volition person to upgrade their PAN cards. The fig oregon PAN volition stay the aforesaid for existing users, but the paper volition request to beryllium upgraded, which the authorities said would beryllium escaped of outgo for the users.

What is the PAN 2.0 Project?

The PAN 2.0 Project of the Income Tax Department, with a fiscal accusation of Rs 1,435 crore, was approved by the Union Cabinet connected Monday. Under the project, the existing PAN strategy volition beryllium upgraded completely, the IT backbone volition beryllium revamped and PAN volition beryllium made arsenic a communal concern identifier for each integer systems of specified authorities agencies, Union Information and Broadcasting Minister Ashwini Vaishnaw said during the Cabinet briefing connected Monday.

“There were repeated demands from the manufacture to person a communal concern identifier. They utilized to accidental they don’t privation antithetic (identification) numbers, a azygous fig would beryllium beneficial. The task volition marque efforts to marque PAN arsenic the communal concern identifier. All PAN/ TAN/ TIN volition beryllium clubbed nether this system,” Vaishnaw said.

What are the features of PAN 2.0?

Apart from the QR-code diagnostic for each caller and existing PAN cards, the PAN 2.0 task aims to acceptable up a unified portal on with a “mandatory PAN information vault system” for each entities utilizing PAN data. This is being done for information extortion and cybersecurity purposes.

“One of the astir important features would beryllium a PAN information vault system. The PAN related accusation is utilized by galore entities specified arsenic banks, security companies. We springiness details of PAN astatine assorted places. So, those (entities) who instrumentality details of PAN, they volition person to support PAN information safely, mandatorily done the information vault system,” Vaishnaw said.

There volition besides beryllium a unified portal arsenic the existing bundle is astir 15-20 years old, Vaishnaw said. “It’ll beryllium wholly paperless, online. A batch of absorption volition beryllium connected the grievance redressal system,” helium said.

The PAN 2.0 task volition alteration technology-driven translation of payer registration services with an purpose to amended easiness of entree and work delivery, an authoritative connection said. This volition beryllium an upgrade of the existent PAN/TAN 1.0 eco-system consolidating the halfway and non-core PAN/TAN activities arsenic good arsenic PAN validation service.

What does this mean for individuals and businesses?

The QR-code diagnostic connected caller and aged PAN cards volition mean an enhanced level of integration of fiscal transactions with the taxation department. The QR codification was introduced successful PAN successful 2017. The PAN 2.0 task intends to proceed with this diagnostic with enhancements, taxation officials said.

“The existing PAN paper holders tin regenerate the aged PAN paper to the QR code-enabled ones. PAN holders having an aged PAN Card without QR codification person an enactment to use for a caller paper with QR code. In PAN 2.0, the submission of applications is going to beryllium online (paperless),” a elder Finance Ministry authoritative told The Indian Express. The upgrade of the PAN paper for the existing users volition beryllium escaped of cost, Vaishnaw said astatine the briefing.

Around 78 crore PAN cards person been issued truthful far, retired of which 98 per cent beryllium to individuals.

For businesses, this would mean a seamless, communal strategy for filing assorted taxation challans and returns.

What are the existing recognition numbers of PAN and TAN?

A 10-digit alphanumeric number, PAN, enables the Income Tax Department to nexus each transactions of a idiosyncratic with the department. These transactions see taxation payments, Tax Deducted astatine Source (TDS) / Tax Collected astatine Source (TCS) credits, returns of income, specified transactions. PAN, thus, acts arsenic an identifier for the idiosyncratic with the taxation department. Once PAN is allotted, it remains the aforesaid forever. It is mandatory to punctuation PAN connected filing of income taxation return.

TAN stands for Tax Deduction and Collection Account Number, which is simply a 10-digit alphanumeric fig issued by the Income Tax Department. TAN needs to beryllium obtained by each persons liable for deducting oregon collecting taxation astatine source. It is compulsory to punctuation TAN successful TDS/TCS return, immoderate TDS/TCS outgo challan, TDS/TCS certificates.