The government has authorized a ₹1,435-crore project to update the current permanent account numbering system, which will provide taxpayers with free PAN cards with QR Code functionality. The goal of the PAN 2.0 initiative is to establish a “common business identifier” for all government agencies’ digital platforms.
Read More:- Government launches Rs 1,435-crore PAN 2.0 Project – Will your old PAN still work?
With the announcement of this scheme, there comes a question whether the old pan will still be valid or not. Check what will happen to your old pan cards now.
Cabinet Approves PAN 2.0 Project
The project was approved on Monday, November 25, 2024, by the Cabinet Committee on Economic Affairs (CCEA), which is led by Prime Minister Narendra Modi.
The Income Tax Department assigns each Indian taxpayer a PAN, which is a unique 10-digit alphanumeric number.
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Will You Have to Apply For a New PAN Card?
Information and Broadcasting Minister Ashwini Vaishnaw informed reporters about the decision, stating that companies had been calling for a single company identification number instead of the three to four that are now in use.
There is no need to modify the current PAN for individuals or corporations; it will stay valid.
Advantages of PAN 2.0 Scheme
The PAN 2.0 Project aims to improve the quality of taxpayer registration services by facilitating a technology-driven transition that is easy to access and expeditious.
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The project’s other advantages include secure and more agile infrastructure, eco-friendly procedures and cost reduction, and a single source of truth and consistent data.
“The PAN 2.0 Project resonates with the vision of the government enshrined in Digital India by enabling the use of PAN as a common identifier for all digital systems of specified government agencies,” as per an official press release.
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Enhanced Data Protection
All organizations using PAN data will need to have a PAN data vault system in order to protect personal information. Additionally, the grievance redressal system will be reinforced with PAN 2.0.
The second-generation PAN is a project aimed at improving taxpayer registration services through technology. It will upgrade the current PAN/TAN system to enhance digital services for taxpayers.
Approximately 78 crore PANs have been issued to date, with 98% of those being to individuals.
