PAN 2.0: The Union Cabinet has given its go-ahead for the PAN 2.0 Project, bringing a big upgrade to the current PAN (Permanent Account Number) system.
The new upgrade includes a QR code feature and will be provided to all taxpayers at no cost. However, many are confused about whether their old cards will become inoperable after the upgrade. Here is everything you need to know-
What is PAN 2.0?
PAN 2.0 is just an upgraded version of the existing system. This project, worth Rs 1,435 crore, was announced by the government earlier this week. The new upgrade is aimed at simplifying the registration process and making things easier for taxpayer. As of now, 78 crore PANs have been issued, with 98 per cent of them belonging to individuals. The new PAN 2.0 will also improve the Income Tax Department's digital infrastructure.
Do you need to apply for a new PAN card?
No, existing PAN card holders are not required to apply for a new PAN card. PAN 2.0 is limited to just new upgrades and users will have the option to choose the new version. Plus, the government has already confirmed that the older version of PAN will remain valid.
What are the changes being introduced in the PAN card?
The new cards will now have an embedded QR code for increased accessibility and faster services.
The upgraded version will also enhance security and reduce unnecessary paperwork alongside saving costs.
The new PAN card updates will also provide increased data security for organisations.
“One of the most important features would be a PAN data vault system. The PAN related information is used by many entities such as banks, insurance companies. We give details of PAN at various places. So, those (entities) who take details of PAN, they will have to keep PAN data safely, mandatorily through the data vault system,” Ashwini Vaishnaw, Union Minister of Railways of India, said.
The project will also revamp taxpayer registration and integrate PAN and TAN services into a single platform.
Just one email a week