Cabinet Confirms PAN 2.0: Mandatory to apply for a new one?

New PAN Card: Cabinet Set With PAN 2.0 With QR Feature Will Replace Old PAN

The Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi, approved the PAN 2.0 Project for the Income Tax Department on Monday. The Minister for Information and Broadcasting Ashwini Vaishnaw elaborated on how Rs.1,435 crores have been granted for the PAN 2.0 Project which would be used to reinvent the old structure and revamp the digital backbone to make PAN a common business identifier for all digital systems of specified Government agencies.

According to an official statement, the initiative would improve validation services and strengthen procedures by combining core and non-core PAN/TAN operations into a single ecosystem.

Approximately 78 crore PANs have already been granted, with 98% of them going to individuals. This change promises a better digital experience without needing current PAN holders to take any action.

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Government’s Intention Behind PAN 2.0 Project

The PAN 2.0 project will enable a technology-driven transformation of taxpayer registration services with an aim to improve ease of access and service delivery, according to an official statement. The PAN 2.0 project proposes to make PAN the “single source of truth and data consistency” with security and optimization of infrastructure for greater agility, a statement.

“The new PAN cards will be QR code enabled. The existing ones can regenerate the old PAN card to the QR code-enabled ones,” said a Senior Finance Ministry official. 

(The Indian Express points included)

Ashwini Vaishnaw said there have been demands by businesses to not have different identification numbers and thus, the new PAN will work as a common business identifier. There will be a unified portal as the existing software is nearly 15-20 years old, he said. “It’ll be completely paperless, online and a lot of focus will be on the grievance redressal system,” he added.

Do citizens have to apply for a new PAN Card?

The citizens are now thinking about whether they will have to reapply for a new PAN card under this recent Government scheme. No, that is the precise answer. The Cabinet very recently approved the Rs.1435 crore PAN 2.0 initiative, which is promising that even as the full system now records a high digitization process, your existing PAN will remain valid.

What’s New in PAN 2.0?

The PAN 2.0 Project aims to improve taxpayer experience through quicker service delivery and processing efficiencies. Significant benefits include the following: 

Simplified Processes: Facilitation of quicker taxpayer registration and services.

Data Consistency: Serve as the single source of truth with integrated information across systems.

Green Initiatives: Endpaper processes and cost-optimized infrastructure.

Improved Security: Upgraded digital infrastructure for better agility and protection.

Conclusion 

The PAN 2.0 Project serves as a milestone in enhancing taxpayer services and making PAN a singular identifier for businesses. Existing PAN card holders need not reapply as their present cards shall continue to exist. This promises faster processing for the most superior category of the digital infrastructure, security enhancements, and smooth, more efficient systems. 

This Government initiative will be perceived as modernization and a business-friendly environment. 

Disclaimer: Data is taken from various news articles and media publications available in the public domain. This blog is purely for information and education purposes. Not a buy or sell recommendation/advice. No investment or trading advice is given. Always discuss investment-related decisions with your eligible financial advisor before investing.