PAN 2.0 Project

About Permanent Account Number (PAN) 2.0 Project

• The project aims to transform the PAN system into a robust identifier for businesses and individuals, enhancing its utility and integrating it further with financial and tax-related processes.

About PAN

• It is a 10-digit alphanumeric identifier issued by the Income Tax Department. It links transactions like tax payments, TDS/TCS credits and returns of income & is mandatory for filing income tax returns.

Key Features of the project

• Enhanced QR Code: A QR code will be incorporated into all new and old PAN cards, allowing for better integration with financial systems.
• Unified Portal: A new, paperless, and online portal will replace the outdated software, improving accessibility and efficiency.
• PAN Data Vault: Mandatory secure storage for PAN data for entities such as banks and insurance companies.
• Integration with Existing Identifiers: PAN will become the common business identifier, merging other identification numbers like TAN (Tax Deduction and Collection Account Number) and TIN (Taxpayer Identification Number).
• Free Upgrade for Existing Users: Around 78 crore PAN holders can upgrade to the new QR-code-enabled PAN card free of cost. The PAN number for existing users will remain unchanged.

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