What Is PAN 2.0 – How To Get PAN 2.0?

PAN 2.0 is part of the government’s efforts to increase digitization, improve user experience and enhance safety of confidential data

From the perspective of taxation, the PAN card system has been useful in tracking the income of individuals and various organizations. And with PAN-Aadhaar linking, millions of fake identities have been detected and removed from the system. The PAN card system has also been instrumental in controlling corruption and scams.

To further strengthen the PAN system, the Cabinet Committee on Economic Affairs (CCEA) has approved the PAN 2.0 project. The idea is to simplify the usage of PAN number and use it as a common identifier for various digital systems being used by government agencies. Let us take a look at some important aspects of PAN 2.0.

What is PAN 2.0?

Improving data security – The government is aiming to make the PAN system more robust and safer. To make that possible, the PAN 2.0 initiative will receive investment worth Rs 1,435 crore from the government. A dedicated digital framework will be set up to run the PAN 2.0 system. Taxpayers can expect improved data management and enhanced security against various types of unauthorized use. Organizations using PAN will be required to set up data vault systems under PAN 2.0. Furthermore, grievances will be addressed by a technologically advanced system that could potentially be using AI and machine learning (ML).

How to get PAN 2.0 – The government has clearly stated that existing PAN card holders need not do anything. When the PAN 2.0 project is implemented, existing PAN card holders will automatically receive the updated PAN card. The new PAN card will have some unique features such as a QR code. This will make the PAN card details much safer in comparison to numerical data that can be easily stolen and misused. So, existing PAN card holders do not have to worry about getting the new PAN card under the PAN 2.0 initiative. New PAN applicants will automatically be moved to the new system. Along with PAN, the TAN operations will also be updated.

Unified portal – As of now, one has to visit multiple websites when accessing PAN / TAN information. This will change under the PAN 2.0 project. A unified portal will be set up that will take care of all PAN / TAN needs. The government is aiming for a completely paperless experience with PAN 2.0. For example, the PAN card could be issued digitally and made available on the user’s smartphone. This will eliminate the need for a physical PAN card.

Will my current PAN card work after PAN 2.0?

As mentioned earlier, existing PAN card holders need not do anything from their end. The existing PAN numbers will continue to be valid. They will be integrated into the new system automatically.

What is the fee for PAN 2.0?

Existing users do not have to pay any fee for upgrading to PAN 2.0. All the costs associated with upgrading to PAN 2.0 will be borne by the government.

Implementing the PAN 2.0 project will take some time. Once the unified portal is launched, one can get  a more practical view of how things will work under PAN 2.0.