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What is PAN 2.0?
India’s financial landscape relies heavily on the Permanent Account Number (PAN) card. With over 78 crore PANs issued under the PAN 1.0 ecosystem, a tech upgrade is welcomed.
The Income Tax Department has introduced the new PAN 2.0 system under which next-generation PAN cards with advanced features will be issued.
Let’s learn more about PAN 2.0 and know how this new system can revolutionise financial processes in India.
What does PAN 2.0 aim at?
The PAN 2.0 Project is an e-Governance project of the Income Tax Department that seeks to:
- Enhance taxpayers' digital experience through the adoption of the latest technology.
- Consolidate core and non-core PAN activities, including allotment/updation/ corrections.
- Enable the use of PAN as a common identifier for businesses across specified government agencies.
What is new and improved in PAN 2.0?
- Dynamic QR code: The new PAN will feature a unique QR code which will display the latest data present in the PAN database and validate the PAN details.
- A unified portal: All PAN-related services will be hosted on a single unified portal of the Income Tax Department.
- Taxpayer facilitation: New PAN with QR allotment, correction and update will be done free of cost, with:
- Digital PAN (e-PAN) sent to registered email IDs
- Physical PAN issued at a fee of ₹50 (Domestic) or ₹15 plus India Post charges (International)
How will it benefit the users?
PAN 2.0 is designed to bring convenience, speed, and security to both individual users and businesses. Let’s learn how.
- The new system allows for quicker online verifications and faster digital interactions with financial institutions and government agencies, enhancing the overall user experience.
- The new PAN with QR is also expected to enhance security and optimise infrastructure with measures such as the PAN data vault. This will provide greater agility and effectively protect the sensitive data (including personal and demographic data) of PAN holders.
- The QR code will allow users to validate their PAN details for various financial services, such as opening a bank account, investing in mutual funds, or applying for loans.
- The eco-friendly paperless processes will reduce paperwork, allowing users to enjoy quicker processing times.
Do existing PAN holders need to reapply?
This is one of the most common questions asked with regard to PAN 2.0.
Existing PAN cards will remain valid under the new system, so current PAN holders do not need to apply for a new PAN unless an update or correction is required.
Also Read: Effective tax planning for salaried employees
Key takeaways
The PAN 2.0 system is a game changer for individuals managing their personal finances. With its advanced features, it streamlines tax-related processes and adds convenience to everyday financial transactions.
Stay tuned for more such informative blogs on the latest financial topics that can help you make informed decisions.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
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