The Government of India has launched the PAN 2.0 project, raising questions among taxpayers about the functionality of their existing PAN cards, the pricing of the new cards, and the features to be included in the upgraded version. The Centre has now addressed these concerns and ensured that taxpayers are not inconvenienced.
Dynamic QR code: Key feature of PAN 2.0
The unique feature of the revised PAN card is the dynamic QR code. While QR codes were introduced in PAN cards in 2017-18, the new version will display real-time updates from the PAN database to provide greater integrity and authenticity to the data.
Existing PAN holders with existing cards can apply for new cards with dynamic QR codes under the current PAN 1.0 system or the upgraded PAN 2.0. This update is especially helpful for verifying PAN details.
What is the PAN 2.0 project?`
The PAN 2.0 initiative is part of the government’s comprehensive e-governance efforts. It aims to:
- Simplify the taxpayer registration process.
- Provide prompt and efficient service.
- Strengthen grievance redressal mechanisms.
- • Enhance data protection and security.
Utilising advanced technology, the Income Tax Department (ITD) is working on PAN and TAN to streamline the user experience.
Do you need to pay for a new PAN card?
The government clarified that existing PAN holders need not apply for new cards under the PAN 2.0 scheme. Now the cards still work, and even the weaker parties have no financial burden on taxpayers.
However, those who choose to obtain a physical copy of the upgraded PAN card will have to pay a nominal fee. Digital services, including new PAN allotments and updates, will remain free of charge.
Cost analysis and efficient spending
Minister of State for Finance, Pankaj Chaudhary, informed Parliament that a cost-benefit analysis was conducted before launching the PAN 2.0 project. The project, which is sponsored by the Public Investment Board (PIB) and the Ministry of Finance, aims to improve taxpayer services without unnecessary expenditure.
The government has assured the public that no public funds will be spent and the project is focused on upgrading the existing system to make it more efficient in the future.
Collaboration with key stakeholders
The development of the PAN 2.0 project involved discussions with key regulatory agencies, including:
The Standing Technical Committee also reviewed the plan and it was supported by the Empowered Technology Group.
No disruption for current PAN holders
The government emphasised that the existing PAN cards will remain valid indefinitely, and current cardholders need not switch to the upgraded version. The amendments are aimed at taxpayer convenience and improved service delivery to new applicants.
This clarification assures taxpayers that the PAN 2.0 project is designed to improve services without imposing additional costs or liabilities on existing PAN holders, making it a seamless and taxpayer-friendly process.
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