Govt okays PAN 2.0: Here is what the new card would mean to taxpayers

New Delhi: The Cabinet Committee on Economic Affairs (CCEA) has approved the implementation of PAN 2.0, a technology-driven revamp of PAN cards, with a budget of Rs 1,435 crore. This initiative aims to modernize the processes associated with Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) services, making taxpayer registration quicker, smarter, and more secure.

The upgraded PAN cards will entail a comprehensive redesign of the current system, incorporating advanced technology and eco-friendly practices to enhance service delivery, improve data accuracy, and simplify digital interactions.

What is PAN 2.0?

The PAN 2.0 project is an e-governance initiative aimed at enhancing the taxpayer registration process by leveraging technology to revolutionise PAN/TAN services. This project will entail a comprehensive upgrade of the current PAN/TAN 1.0 ecosystem, streamlining both core and non-core PAN/TAN activities alongside PAN validation services.

The initiative involves a complete overhaul of the existing PAN system, revamping the IT infrastructure, and establishing PAN as a universal business identifier across specified government agencies’ digital platforms.

The project aims to consolidate essential PAN/TAN services into a single, digital platform in accordance with the Digital India initiative. This centralized system will offer a comprehensive portal for all PAN-related services and heightened cybersecurity measures to safeguard user information.

What should you as a tax payer expect?

The PAN 2.0 project seeks to implement a QR-code feature on all new and existing PAN cards, as well as establish a central portal and mandatory PAN data vault system for entities leveraging PAN data. This initiative is driven by the need for enhanced data protection and cybersecurity measures.

The upcoming PAN 2.0 update will involve replacing outdated software with a new platform designed to meet current needs. Additionally, a unified portal will be introduced to improve service efficiency, with a strong emphasis on addressing customer grievances.

The four main points mentioned by the Cabinet Committee:

Faster, Easier Access: No more waiting around—services will be delivered at lightning speed.
One Truth, One Source: Your data stays consistent across platforms, eliminating errors.
Go Green: Eco-friendly processes will cut waste and save costs.
Stronger Security: Enhanced systems mean your information stays safe and sound.

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