PAN 2.0: How is it Different From PAN 1.0?
PAN 2.0 will soon be a reality. It has been announced by the Cabinet Committee on Economic Affairs (CCEA). Chaired by the Indian Prime Minister Narendra Modi, the Cabinet is believed to have brought an estimate for the new PAN-related initiative to ₹1,435 crore. The objective is to align it with e-Governance for effective consolidations and process streamlining.
That brings up the question of how PAN 2.0 is different from PAN 1.0 and how one can apply for it.
PAN 1.0 Details
PAN, an acronym for Permanent Account Number, is a card consisting of 10-digit alphanumeric values. It is an essential document that helps the Indian Income Tax Department to track transactions of individuals and businesses. These transactions can pertain to tax payments, TDS, and return of income, among other things.
A total of two entities are authorized to set up and manage PAN service centers - NSDL and UTIITSL.
NSDL is now known as Protean and UTIITSL is short for UTI Infrastructure Technology & Services Limited. Their additional responsibility is to establish and manage TIN Facilitation Centers in different cities of India, that is Bharat. Anyone can apply for PAN 1.0 by submitting Form 49A/49AA over the Internet.
PAN 2.0 vs. PAN 1.0
PAN 2.0 is a move towards making the process completely paperless. According to the official press release by the CCEA, the benefits of PAN 2.0 include speedy delivery of services, ease of access to service delivery, single source of data consistency, optimization of cost along with eco-friendly processes, and enhanced security against cyber threats.
The official press release further states that an upgrade to PAN 2.0 will consolidate core & non-core PAN/TAN activities and PAN validation service. The new version of PAN will be a Common Identifier for all digital systems of government agencies.
Union Minister Ashwini Vaishnaw announced the approval of PAN 2.0 by the Cabinet. He highlighted that the aim was to facilitate technology-based transformation for taxpayer registration services.
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There are speculations about how it will be different from PAN 1.0. Apart from the tech-based upgradation, PAN 2.0 is expected to feature a QR Code. This would make it convenient for agencies to draw out the information of the PAN holder. It will also enable easy verification of the data. All PAN-related services will be consolidated into a single digital platform.
The Cabinet has not announced the date to roll out PAN 2.0; however, it is expected to be launched soon, especially since the Cabinet approved it on November 25, 2024.
How to Apply for PAN 2.0?
According to statements of Ashwini Vaishnaw, current PAN card holders will not have to apply for a new PAN number. There is no cost to upgrade current PAN cards. It will happen when citizens come across an option to switch to PAN 2.0. Existing PAN cards will still be valid but an upgraded version would be recommended to ensure that documents are up-to-date to avoid any last-minute hassle.
Interestingly, more than 78 crore PAN cards have been issued in India to date out of which 98% are held by individuals.
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