The Income Tax Department has introduced upgrades to the Permanent Account Number (PAN), creating a new version called PAN 2.0.
- Enhancements include:
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- QR code features for new and existing cards.
- Fully online application process.
- Merger of existing identification numbers to make PAN the primary identifier for businesses.
Objectives of PAN 2.0
- Single Source of Truth:
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- PAN is set to be a reliable identifier linked to Aadhaar for consistency in data.
- Taxpayer Simplification:
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- Acts as a universal identifier for tax transactions like Tax Deducted at Source (TDS), Tax Collected at Source (TCS), and income tax filings.
Key Features of PAN 2.0
- Continued Validity:
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- Existing PAN cards remain valid.
- Option to upgrade to the enhanced version free of cost.
- Enhanced QR Code:
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- QR codes started in 2017–18 will receive improvements for data validation.
- Technology-Driven System:
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- Introduction of a “PAN Data Vault” for safe and mandatory storage of PAN data.
- Improved systems for online validation.
Benefits for Individuals and Businesses
- Individuals:
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- Easier access to PAN services online.
- Duplication prevention by eliminating multiple PAN cards for one individual.
- Businesses:
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- Unified business identification for seamless tax filing and returns.
- Simplified system for managing TDS/TCS-related services.
Government’s Goals
- Unified Platform:
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- PAN-related services (e-filing, UTITSL, and Protean portals) will be integrated into one platform.
- Ease of Access:
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- Comprehensive handling of PAN and TAN-related services.
- Focus on process simplification, delay elimination, and grievance redressal.
- Digital Transformation:
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- Transition to a paperless application and validation process.
