The Ministry of Finance's PAN 2.0 Project, approved by the Cabinet Committee on Economic Affairs (CCEA) on November 25, 2024, is a landmark initiative aimed at transforming the issuance and management of Permanent Account Numbers (PAN) and Tax Deduction and Collection Account Numbers (TAN). This project focuses on efficiency, accessibility, and security while aligning with the Digital India initiative to provide seamless taxpayer services.
Key Features of PAN 2.0
1. Unified Portal
- Combines the services of the e-Filing Portal, UTIITSL Portal, and Protean e-Gov Portal into a single platform.
- Offers end-to-end services, including:
- PAN/TAN applications.
- Corrections and updates.
- Aadhaar-PAN linking and validations.
2. No Fee for PAN Updates
- Issuance, corrections, and updates of e-PAN are free of cost.
- Physical PAN cards available for a nominal fee:
- ₹50 for domestic addresses.
- ₹15 plus actual postal charges for international delivery.
3. Enhanced Security
- PAN Data Vault for robust protection of taxpayer data.
- Dynamic QR codes on PAN cards for real-time validation and authenticity.
4. Eco-Friendly and Paperless
- Digital-first processes reduce paperwork and promote sustainability.
5. Integration with Government Systems
- Establishes PAN as the common business identifier for specified government agencies, simplifying compliance across sectors.
6. Duplicate PAN Detection
- Centralized mechanisms identify and deactivate duplicate PANs, ensuring compliance with the Income Tax Act, 1961.
Benefits for Taxpayers
- Simplified Processes: A unified platform reduces redundancy and delays.
- Cost Efficiency: Free issuance and updates reduce financial burden.
- Enhanced Grievance Redressal: Dedicated helpdesks and improved systems for timely resolution.
- Digital Compliance: Streamlined authentication, Aadhaar linking, and updates promote ease of business.
Benefits for the Government
- Operational Efficiency: Integration reduces administrative complexities.
- Better Compliance: Detecting and deactivating duplicate PANs enhances data integrity.
- Data Security: Advanced encryption and dynamic QR codes safeguard taxpayer information.
Key Innovations of PAN 2.0
| Feature | Existing System | PAN 2.0 System |
|---|---|---|
| Platforms | Spread across three portals: e-Filing, UTIITSL, Protean e-Gov. | Single, unified portal for all PAN/TAN-related services. |
| Fee for Updates | Charged for corrections. | Free corrections and updates for e-PAN. |
| Security Measures | Limited protection for PAN data. | PAN Data Vault and dynamic QR codes for authenticity. |
| Duplicate PAN Handling | Manual or system-intensive processes. | Centralized mechanism to deactivate duplicates. |
| Grievance Redressal | Delayed and fragmented. | Dedicated helpdesk for faster resolution. |
Aligning with the Digital India Vision
The PAN 2.0 Project is a progressive step toward a unified, efficient, and user-friendly system for managing PAN and TAN. By adopting cutting-edge technology, embracing eco-friendly practices, and offering free services, the initiative reflects the government’s commitment to a transparent, inclusive, and sustainable tax ecosystem.
