PAN 2.0: How your PAN Card is about to get a digital boost

The Central Government has green lit the PAN 2.0 project, which is now set to revise the Indian Income Tax Department’s PAN (Permanent Account Number) system. The revamp will come with a digital shift and will include some much-needed modern implementations for the PAN Card, which has always existed only in its physical avatar for over 70 crore Indian citizens. 

Here is everything that is changing with PAN 2.0, and how technology will play a crucial role in it.

PAN 2.0: What is changing?

The current PAN system in India comprises of three different platforms. This includes the e-Gov portal, the UTIITSL portal, and the e-Filing portal, which we all use to file our Income Tax Returns (ITR).  

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With PAN 2.0, all these three platforms will merge into one central unified platform, where everything from PAN creation to Tax Return filing will be possible. 

How the PAN 2.0 project will use technology

PAN 2.0 will allow for an online PAN validation service, which can then be used for user verification purposes at institutions like banks and government agencies.  

Of course, the new approach is also expected to introduce paperless, digital processes to create a PAN and access other PAN-related services (like editing account details). All of this will soon be possible to do, right from your smartphones.

The project will also mean that existing PAN accounts and new joinees will get an e-PAN (Electronic Permanent Account Number), which will be the digital counterpart of your standard PAN Card.  

This digital card, (similar to E-Aadhaar) will be available immediately, and will allow you to file returns or use the card elsewhere without waiting for a physical card to arrive. Do note, however, that even after PAN 2.0 comes to action, new PAN users will still be able to order a physical PAN Card at a nominal cost.  

The good news is that all of this will be implemented with existing PAN accounts in mind, and those who already have a PAN account and a PAN Card need not take any additional steps to go digital.

There is no need to get a new card either. In fact, once PAN 2.0 is implemented, existing users will be able to change details and use other services digitally.

Why you may still want to get a new PAN Card after PAN 2.0

PAN 2.0 is expected to go even bigger on QR codes, and will likely have dynamic QR codes which will show real-time, updated data corresponding to every PAN account when scanned. If you have a very old PAN Card that does not have a QR code, getting a new PAN Card will get you one with your very own QR code.  

Further details on when and in how many phases the PAN 2.0 project will be implemented remain to be seen, but with a lot of digital advancements being added to the mix, citizens will have a lot to look forward to.  

As per a Business Today report from April this year, over half of India still doesn’t have a PAN account and a PAN Card. With the process to create one now going digital, along with all other associated services, creating a new account should be easier than ever moving forward.