In line with the Digital India initiative, the Central Government has announced the rollout of PAN 2.0, a transformative project by the Income Tax Department to modernize taxpayer registration services. The project, set to cost ₹1,435 crore, aims to provide a technology-driven overhaul of the existing PAN/TAN system, enhancing accessibility, efficiency, and security for citizens.

Union Minister Ashwini Vaishnaw, during a Cabinet briefing, emphasized the project’s scope, stating that it will deliver a unified, paperless, and eco-friendly system for taxpayers. “The existing system will be upgraded to include a new digital backbone, making PAN a common business identifier. The emphasis will also be on an improved grievance redressal system,” he said.

Key Features of PAN 2.0

New QR Code-Enabled PAN Cards: Citizens will receive upgraded PAN cards equipped with a QR code feature for seamless verification and better data integration.

No Need for Reapplication: Existing PAN holders will not need to reapply for the new system; the upgrade will be automatic and free of cost.

Enhanced Grievance Redressal: A streamlined grievance redressal mechanism will address taxpayer issues more efficiently.

Data Security: A PAN Data Vault System will be implemented to protect sensitive taxpayer information.

The project also includes a consolidated portal to eliminate the need for multiple platforms. This unified interface will simplify processes for taxpayers, reducing paperwork and ensuring data consistency across services.

PAN’s Role as a Business Identifier

The government plans to position PAN as a single business identifier, further integrating it into India’s digital governance framework. Currently, over 78 crore PANs have been issued, with individuals accounting for 98% of these.

“With the upgraded system, citizens will experience faster service delivery, improved infrastructure, and significant cost optimizations, ensuring a seamless digital experience for all taxpayers,” Vaishnaw added.