PAN 2.0 is an e-governance initiative by the Income Tax Department aimed at modernising the taxpayer registration system through technology-driven improvements.

Do existing PAN card holders need to apply for a new PAN under PAN 2.0?

No, existing PAN card holders are not required to apply for a new PAN. Their current PAN cards remain valid under the upgraded system.

Is there a fee for updating or correcting PAN details under PAN 2.0?

No, under PAN 2.0, existing PAN holders can update or correct their PAN details, such as email, mobile number, or address, free of cost.

How does PAN 2.0 enhance data security?

PAN 2.0 includes the creation of a "PAN data vault system" for all entities using PAN data, aimed at enhancing data protection and cybersecurity.

Will PAN 2.0 be linked to Aadhaar automatically?

Yes, PAN 2.0 will have automatic Aadhaar linkage for new applicants, while existing PAN holders must ensure their Aadhaar is linked to avoid penalties.

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What Income Tax Payers Need To Know About PAN 2.0?

Pragya Pathak

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Updated: 28-01-2025 at 7:21 AM

What Income Tax Payers Need To Know About PAN 2.0?

PAN 2.0 is a new project of the Income Tax Department launched by the government to improve the existing PAN card services. The main aim of the project is to enhance the quality of the PAN by incorporating technology into it. Through this project, ITD is working on digitising all the PAN card-related services like updation or correction of information and also merging TAN-related services.

Security-related functions like verification of PAN would also be done online but through agencies like financial institutions, banks, govt agencies, and central and state govt departments, etc. only.

How Does PAN 2.0 Differ From The Existing System?

PAN 2.0 will differ in several ways. Let us explore the features that make this PAN system different from the existing one.

Merging platforms: Currently, there are three different portals (e-Filing, UTIITSL, and Protean e-gov portal) that help people with PAN card services. PAN 2.0 aims to change this and merge all the platforms for both, PAN and TAN so that people can carry out all the needed functions like Know your AO, Aadhar-PAN linking, request for e-PAN, etc.
Digitisation: The new project aims to digitise all the PAN and TAN-related services and eliminate the hassles associated with paper.
User friendly: Functions like updation/correction of PAN will completely be free of cost, e-PAN will be sent to the applicant’s registered mail ID, and physical PAN Cards will be delivered with a nominal charge of Rs. 50 (domestic) and for international deliveries the fee is just the original charge plus Rs. 15.

General Questions About PAN 2.0

Since the commencement of PAN 2.0, there have been a lot of questions among common citizens, so let’s break all of them one by one.

Would people have to apply for renewal under PAN 2.0? Or does one need to change their PAN number?

No. Existing PAN cardholders don’t have to apply for renewal or change their PAN numbers under the new and upgraded system of PAN 2.0.

Can people apply for corrections in PAN for their personal information like their name, address, etc?

Yes, new and existing PAN cardholders could do updation/correction in their PAN completely free of cost after the project starts. Till that time, PAN cardholders can do the same by visiting the following links:

Do people need to change their PAN cards under PAN 2.0?

No, existing PAN cardholders don’t have to change their PAN cards for the upgraded system of PAN 2.0.

If the addresses aren’t updated, how will the new PAN cards be delivered? New PAN cards wouldn’t be delivered unless the applicant puts a request for the same with the correct addresses.

As now there is QR in the new PAN cards, how will the old PAN cards work without QR and what is its role? QR codes have always been there on PAN cards since 2017-18 and the new PAN cards will have the same but with some upgrades. QR codes will help the authorities access the cardholders’ details like name, father’s name, date of birth, etc. quickly. Those cardholders who don’t have a QR code on their PAN cards can reapply for an updated PAN card.

What is the ‘Common Business identifier for all business-related activities in specified sectors"?

It is now mandatory for all business establishments to have a PAN which will be used as their government-issued IDs as per the decision taken in the Union Budget 2023.

Will the Common Business Identifier replace the existing PAN?

No, the PAN card will be used as a Common Business Identifier so no replacements as such.

What does the ‘Unified Portal’ mean?

A unified portal means that all the PAN and TAN-related services will now be accessible to the people in one portal itself.

Some people have more than one PAN, how will the new system resolve this issue?

According to the provisions of the Income Tax Act of 1961, an individual can only have one PAN card. However, if someone has more than one, they are legally obliged to report this to the Jurisdictional Assessing Officer and get the extra PAN deactivated. The upgraded system of PAN 2.0 comes with a high-security algorithm that would be able to identify such frauds or scams.

Conclusion

PAN 2.0 is a game changer for all income taxpayers in India, it will not only make things easy and streamlined but also enable security and transparency in the system.

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