The Central Board of Direct Taxes (CBDT) the finance ministry released responses to Frequently Asked Questions (FAQs) regarding its PAN 2.0 initiative on November 26. This initiative aims to enhance and modernize the issuance and management of PAN cards. The department clarified that current PAN holders do not need to apply for a new card under the upgraded system, mentioning that QR codes have been part of PAN cards since the 2017-18 period and are not a novel feature.
“The same will be continued under PAN 2.0 project with improvements (dynamic QR code which will display the latest data in the PAN database),” the department stated. PAN holders with cards lacking a QR code may opt to request a new card with a QR code within both the existing PAN 1.0 and the updated PAN 2.0 systems. The QR code serves to validate the PAN and its associated details. The PAN 2.0 initiative, estimated to cost Rs 1,435 crore, is expected to launch in 2025, though precise dates are yet to be confirmed, according to a ministry representative.
Here is a summary of the remaining FAQ responses:
How will PAN 2.0 differ from the current system?
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Currently, PAN services are divided among three different platforms: e-Filing Portal, UTIITSL Portal, and Protean e-Gov Portal. The PAN 2.0 initiative will consolidate all PAN and TAN related services into one unified portal under the Income Tax Department.
This new portal will provide comprehensive end-to-end services for PAN and TAN, including allocation, updates, corrections, Online PAN Validation (OPV), Know Your Assessing Officer (AO), linking Aadhaar with PAN, PAN verification, requests for e-PAN, and reprints of PAN cards, among others.
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The process will be fully online and paperless, contrasting with the current procedures.
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The allocation, updating, and correction of PAN will be offered at no charge, with the e-PAN sent directly to the registered email address. However, for a physical PAN card, applicants must request it and pay a fee of Rs 50 (for domestic delivery). For deliveries outside India, a fee of Rs 15 plus actual India Post charges will apply.
Can individuals request corrections for details on their PAN, like name, spelling, or address?
Current PAN holders can update or correct their existing details, such as email, phone number, or demographic information like name or date of birth, free of charge after the launch of the PAN 2.0 project. Until then, they can use the Aadhaar-based online facility for these changes.
For other types of updates or corrections, holders can follow the regular process by either visiting physical centers or applying online with payment.
Many individuals have not updated their addresses and continue to use outdated information. How will the new PAN be delivered, and when?
No new PAN card will be sent unless a holder specifically requests it. Those wishing to update their previous address may do so free of charge using the Aadhaar-based online service.
What does – the “Common Business identifier for all business-related activities in specified sectors” mean?
In the 2023 Union Budget, it was announced that businesses required to have a PAN will use the card as a common identifier across all digital systems of specified government agencies. Additionally, the PAN itself will serve as the Common Business identifier.
How will you identify and eliminate extra PANs for individuals who have more than one?
According to the Income-tax Act of 1961, no individual may possess more than a single PAN. If someone has multiple PANs, they are required to inform their Jurisdictional Assessing Officer to have the extra PAN deactivated or deleted. The department noted that improved systems for identifying potential duplicate PAN requests should reduce the instances of individuals holding multiple cards.