All you need to know about PAN 2.0

Highlights

A day after the Cabinet Committee on Economic Affairs approved the PAN 2.0, the Income Tax Department on Tuesday issued a detailed clarification on the project based on a list of 11 frequently asked questions (FAQs) to provide taxpayers with a deeper insight into the new system.

New Delhi: A day after the Cabinet Committee on Economic Affairs approved the PAN 2.0, the Income Tax Department on Tuesday issued a detailed clarification on the project based on a list of 11 frequently asked questions (FAQs) to provide taxpayers with a deeper insight into the new system.

1. What is PAN 2.0?

PAN 2.0 Project is an e-Governance project of the Income Tax Department for re-engineering the business processes of taxpayer registration services. The objective of the project is to enhance the quality of PAN services through the adoption of the latest technology. Under this project, ITD is consolidating all processes related to PAN allotment/updation and corrections. The TAN-related services are also 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.

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

i. 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 said 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.

ii. Comprehensive use of technology for paperless processes: Complete online paperless process as against prevailing mode

iii. 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 a physical PAN card, the applicant has to make a request along with the prescribed fee of Rs 50 (domestic). For delivery of the card outside India, Rs 15 plus India post charges at actuals will be charged to the applicant.

3. Whether existing PAN CARD Holders will be required to apply for new PAN under the upgraded system?

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

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 the time the PAN 2.0 project is rolled out, the PAN holders can avail of the Aadhaar-based online facility for updation/correction of email, mobile and address free of cost by visiting the below URLs:

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

ii. 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.

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

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

6. A lot of people have not changed their addresses and are continuing with the old address. How will the new PAN be delivered? By when will the new PAN Card get 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 Aadhaar based online facility by visiting the below URLs:

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

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

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

7. If new PAN cards are QR code enabled, will older ones continue to function as it is? What will the QR code help us with?

i. The QR code is not a new feature, and it has been incorporated in the PAN cards since 2017-18. The same will be continued under the PAN 2.0 project with enhancements (dynamic QR code which will display the latest data present in the PAN database). PAN holders having 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 eco-system as well as in the PAN 2.0.

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

iii. Presently, a specific QR reader application is available for verification of QR code details. On reading through the reader application, complete details, i.e., photo, signature, Name, Father’s Name / Mother’s Name and Date of Birth are displayed.

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.

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.

10. What does the “Unified Portal” mean?

Presently, the PAN-related services are hosted on three different portals. In the PAN 2.0 Project, all PAN/TAN-related services will be hosted on a single unified portal of ITD. The said 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., thereby further simplifying the processes, and avoiding delay in PAN services delivery, delay in redressal of grievances etc. caused by the presence of various modes of receipt of applications (online eKYC/online paper mode/offline).

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, 1961, no person can hold more than one PAN. In case a person holds more than one PAN, he/she is obliged to bring it to the notice of the Jurisdictional Assessing officer and get the additional PAN deleted/deactivated.

In the PAN 2.0, with the improved systems logic for identification of potential duplicate requests for PAN and centralised and enhanced mechanism for resolving the duplicates would minimise the instances of one person holding more than one PAN.