The government of India has taken a significant step towards enhancing taxpayer convenience and improving the efficiency of its tax registration systems with the launch of the PAN 2.0 initiative. Announced on November 25, 2024, by the Cabinet Committee on Economic Affairs (CCEA), this ambitious project has been allocated a budget of ₹1,435 crore to reimagine the existing PAN and TAN ecosystem.
What is PAN 2.0?
The PAN 2.0 Project is an e-Governance initiative designed to re-engineer the business processes surrounding taxpayer registration services. It introduces a technology-driven transformation of PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) services, focusing on enhancing the digital experience for taxpayers. According to the official government release, PAN 2.0 aims to:
Consolidate Core and Non-Core Services: Streamline PAN and TAN activities for more efficient management.
Digital Integration: Enable PAN as a universal identifier across all digital systems of specified government agencies.
Enhanced User Experience: Deliver faster, more accessible services with consistent data accuracy.
Eco-Friendly and Cost-Efficient Processes: Promote sustainability while reducing operational costs.
Improved Security: Modernize infrastructure for greater reliability and agility.
Features and Benefits
Ease of Access: Faster service delivery with improved quality.
Single Source of Truth: Data consistency across systems to minimize errors.
Sustainability: Paperless processes for a greener future.
QR Code Integration: PAN cards will now feature a QR code, enhancing usability and security.
Do You Need a New PAN Card?
Union Minister Ashwini Vaishnaw clarified that existing PAN cards will remain valid. Taxpayers will not need to apply for new PAN numbers. However, those wishing to upgrade to the new QR code-enabled PAN card can do so free of charge.
Steps for PAN Application
Submit Form 49A with required documents and prescribed fees.
Apply through offline centers like UTIITSL or Protean (formerly NSDL eGov) or via their websites for online submissions.
Required Documents
Copy of passport.
Bank account statement in the country of residence.
NRE account statement showing at least two transactions in the last six months, attested by an Indian Embassy, Consular Office, High Commission, Apostille, or bank manager.
NRIs can use their foreign address as their residential or office address if they don’t have an Indian address.
Fees for PAN Application
For addresses outside India: The fee for PAN application processing is ₹994 (inclusive of dispatch charges).
Correcting Errors in PAN
If errors occur in a PAN card, taxpayers can file for corrections using the “Request for New PAN Card or Changes in PAN Data” form.
Application Modes:
Offline: Submit the form at UTIITSL or Protean (formerly NSDL eGov) centers.
Online: Apply via the official UTIITSL or Protean websites.
Ensure the application includes accurate information, required documents, and prescribed fees.
Penalty for Multiple PAN Cards
Holding more than one PAN card is illegal. As per Section 272B of the Income-tax Act, 1961, individuals possessing multiple PANs are liable to pay a penalty of ₹10,000. If you have more than one PAN, surrender the additional card(s) immediately to avoid penalties.
Conclusion
The PAN 2.0 initiative is set to revolutionize the way taxpayers interact with India’s tax systems, ensuring faster, more reliable, and user-friendly services. For both residents and NRIs, the enhanced features and streamlined processes mark a new era of convenience and efficiency. Whether you’re applying for a PAN, upgrading to the new QR code-enabled version, or simply ensuring compliance, PAN 2.0 is a step toward a more digitized and taxpayer-friendly India.
