The Union Cabinet has approved the PAN 2.0 Project, a significant overhaul of India’s Permanent Account Number (PAN) system. This move aligns with the Digital India initiative, aiming to modernize the outdated PAN infrastructure while improving taxpayer services.
Key Highlights of the PAN 2.0 Project
The PAN 2.0 Project is set to transform the way PAN cards are issued and utilized. This upgrade introduces a QR Code feature, a unified portal, and the establishment of PAN as a common business identifier.
Financial Outlay and Objective
The PAN 2.0 Project is led by the Income Tax Department with a financial allocation of ₹1,435 crore. The aim is to modernize infrastructure, improve data security, and simplify services for both individuals and businesses.
Features and Benefits of PAN 2.0
1. Introduction of QR Code
The upgraded PAN cards will include a QR code to enhance security and simplify identification. This feature ensures faster and more reliable access to services for users.
2. Unified Portal
The PAN system will transition to a completely online and paperless platform through a unified portal. This will replace the current system, which has been in place for over 15 years, making services seamless and accessible.
3. Eco-Friendly and Cost-Effective
The modernized system is designed to reduce paperwork, making it eco-friendly while optimizing costs for infrastructure maintenance.
4. Free Upgrade for Existing PAN Holders
Existing PAN cardholders will receive the upgraded cards at no additional cost. This ensures widespread adoption of the new system without financial burden on taxpayers.
5. Simplified Business Identification
The new system will establish PAN as a unified identifier for businesses across government platforms, addressing a long-standing need for a single identification number for businesses.
Impact on Taxpayers and Businesses
With approximately 78 crore PAN cards issued, the majority belong to individuals. The PAN 2 Project caters to both individual taxpayers and businesses, ensuring:
- Faster grievance resolution
- Enhanced security of personal and financial data
- Streamlined transactions and monitoring for compliance
PAN 2.0 at a Glance
| Feature | Details |
| Project Name | PAN 2.0 Project |
| Cost | ₹1,435 crore |
| Lead Agency | Income Tax Department |
| Key Feature | QR Code on PAN cards |
| System Transition | Unified, paperless, online platform |
| Existing PAN Cards | Free upgrade for 78 crore holders |
| Primary Beneficiaries | Individuals and businesses |
Summary: PAN 2.0 Project
- The Union Cabinet has approved the PAN 2 Project at ₹1,435 crore.
- New PAN cards will feature a QR code for improved security and identification.
- A unified, paperless, and online portal will replace the current PAN system.
- PAN will serve as a universal business identifier across government platforms.
- The upgrade is free for existing PAN holders.
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FAQs
The PAN 2.0 Project is a modernization initiative by the Income Tax Department to upgrade India’s PAN system. It introduces QR codes, a unified portal, and eco-friendly processes.
Both individual taxpayers and businesses will benefit through enhanced services, faster grievance resolution, and simplified transactions.
No, the upgrade is free for all existing PAN cardholders.
The QR code enhances security and provides faster access to taxpayer services.
Approximately 78 crore PAN cards have been issued, with 98% belonging to individuals
The project costs ₹1,435 crore, aimed at modernizing infrastructure and enhancing taxpayer services
Businesses will use PAN as a common identifier across government platforms, streamlining operations and compliance
