New PAN card to have a QR code, will your current PAN card become inoperative?

New PAN Card: The government has announced the PAN 2.0 project. At the time of the announcement, Union Minister Ashwini Vaishnaw said that the upgrade of PAN includes adding a QR code. This will be rolled out free of cost to all taxpayers. However, the question arises now whether the existing PAN becomes inoperative if it does not have a QR code.

The income tax department has released FAQs on November 26, 2024 clarifying that the existing PAN card holders are not required to apply for new PAN under the PAN 2.0. The existing PAN card will continue to remain valid.

Read Also: ITR Filing: Income tax department shortens time limit for condonation of delay

What is PAN 2.0 project?

According to press release issued by the government on November 25, 2024, PAN 2.0 Project is an e-Governance project. The project is being undertaken by the government for re-engineering the business processes of taxpayer registration services through technology driven transformation of PAN and TAN services and also for enhanced digital experience of the taxpayers.

PAN 2.0 will upgrade the current PAN and TAN 1.0 eco-system consolidating the core and non-core PAN and TAN activities as well as the PAN validation services. The PAN 2.0 Project aims to enable the use of PAN as common identifier for all digital systems of specified government agencies.

Read Also: Income Tax new rules for Eligible for interest waivers or on late payments

The PAN 2.0 Project offers significant benefits including:

i. Ease of access and speedy service delivery with improved quality;
ii. Single Source of Truth and data consistency
iii. Eco-friendly processes and cost optimization; and
iv. Security and optimization of infrastructure for greater agility.

PAN 2.0: What happens to current PAN card without QR code?

Here are the FAQs issued by the income tax department to help the taxpayers.

Read Also: Income Tax: Do you need to pay Tax on Diwali Gifts?

QUESTION 1 : What is PAN 2.0?

PAN 2.0 Project is an e-Governance project of ITD for re-engineering the business processes of taxpayer registration services. The objective of the project is to enhance the quality of PAN services through adoption of latest technology. Under this project ITD is consolidating all processes related to PAN allotment/updation and corrections. The TAN related services are also merged with this project. Besides, PAN authentication/validation through online PAN validation service will be provided to user agencies such as financial institutions, banks, government agencies, central and state government departments etc.

QUESTION 2 : How PAN 2.0 will be different from existing setup?

Integration of Platforms: Presently, the PAN related services are hosted on three different portals (e-Filing Portal, UTIITSL Portal and Protean e-Gov Portal). In the PAN 2.0 Project, all PAN/TAN related services will be hosted on a single unified portal of ITD. The said Portal would host all end-to-end services related to PAN and TAN like allotment, updation, correction, Online PAN Validation (OPV), Know your AO, AADHAAR-PAN linking, verify your PAN, request for e-PAN, request for re-print of PAN card etc.
Comprehensive use of technology for paperless processes: Complete online paperless process as against prevailing mode
Taxpayer facilitation: Allotment/updation/correction of PAN will be done free of cost and e-PAN will be sent to the registered mail id. For physical PAN card, the applicant has to make a request along with the prescribed fee of Rs 50 (domestic). For delivery of card outside India, Rs. 15 + India post charges at actuals will be charged to the applicant.

Read Also: Crorepati income tax return filers soar 5 times in 10 years; check who has to file ITR

QUESTION 3

Whether existing PAN CARD Holders will be required to apply for new PAN under the upgraded system?
Do you need to change your PAN number?

No. The existing PAN card holders are not required to apply for new PAN under the upgraded system (PAN 2.0).

QUESTION 4 : Do people have an option to get corrections done on PAN, like name, spellings, address change etc?

Yes. If existing PAN holders want to make any correction/updation of their existing PAN details such as email, mobile or address or demographic details such as name, date of birth etc., they can do so at free of cost after the PAN 2.0 Project commences. Till the time the PAN 2.0 project is rolled-out, the PAN holders can avail the Aadhaar based online facility for updation/correction of email, mobile and address free of cost by visiting the below URLs:

In any other cases of updation/correction of PAN details, the holders can do so using the existing process either by visiting physical centres or applying online on payment basis.

Read Also: Centre launches process to revamp income tax regime

QUESTION 5 : Do I need to change my PAN card under the PAN 2.0?

No. The PAN card will not be changed unless the PAN holders want any updation/correction. The existing valid PAN cards will continue to be valid under PAN 2.0.

QUESTION 6 : A lot of people have not changed their addresses and are continuing with old address. How will the new PAN be delivered? By when will the new PAN Card get delivered?

No new PAN card will be delivered unless the PAN holder requests for it owing to any updation/correction in their existing PAN. The PAN holders who want to update old address, they can do so free of cost using Aadhaar based online facility by visiting the below URLs:

Accordingly, the address will be updated in the PAN database.

QUESTION 7

If new PAN cards are QR code enabled, will older ones continue to function as it is?
What will QR code help us with?

The QR code is not a new feature, and it has been incorporated in the PAN cards since 2017-18. The same will be continued under PAN 2.0 project with enhancements (dynamic QR code which will display latest data present in PAN database). PAN holders having an old PAN Card without QR code have an option to apply for a new card with QR code in existing PAN 1.0 eco-system as well as in the PAN 2.0.
The QR code helps in validating the PAN and PAN details.
Presently, a specific QR reader application is available for verification of QR code details. On reading through the reader application, complete details, i.e., photo, signature, Name, Father’s Name / Mother’s Name and Date of Birth is displayed.

Read Also: CBDT forms internal committee to comprehensively review Income tax Act

QUESTION 8 : What is – the “Common Business identifier for all business-related activities in specified sectors”?

In the Union Budget 2023, it was announced that for the business establishments required to have a PAN, the PAN will be used as the common identifier for all digital systems of specified government agencies.

QUESTION 9 : Whether Common Business identifier will replace the existing unique taxpayer identification number i.e. PAN?

No. PAN itself will be used as a Common Business identifier.

QUESTION 10 : What does the “Unified Portal” mean?

Presently, the PAN related services are hosted on three different portals. In the PAN 2.0 Project, all PAN/TAN related services will be hosted on a single unified portal of ITD. The said Portal would host all end-to-end services related to PAN and TAN like allotment, updation, correction, Online PAN Validation (OPV), Know your AO, AADHAAR-PAN linking, verify your PAN, request for e-PAN, request for re-print of PAN card etc., thereby further simplifying the processes, and avoiding delay in PAN services delivery, delay in redressal of grievances etc. caused by the presence of various modes of receipt of applications (online eKYC/online paper mode/offline).

Read Also: New TDS rates effective october 1: Key changes for taxpayers to know

QUESTION 11 : For people holding more than one pan, how will you identify and weed out the extra PAN ?

As per the provisions of Income-tax Act, 1961, no person can hold more than one PAN. In case a person holds more than one PAN, he/she is obliged to bring it to notice of Jurisdictional Assessing officer and get the additional PAN deleted/de-activated.

In the PAN 2.0, with the improved systems logic for identification of potential duplicate requests for PAN and centralized and enhanced mechanism for resolving the duplicates would minimize the instances of one person holding more than one PAN.

Disclaimer: The article or blog or post (by whatever name) in this website is based on the writer’s personal views and interpretation of Act. The writer does not accept any liabilities for any loss or damage of any kind arising out of information and for any actions taken in reliance thereon.
Also, www.babatax.com and its members do not accept any liability, obligation or responsibility for author’s article and understanding of user.

For Collaborating with us-

Mail us at [email protected]
Whatsapp us at +91-7024984925

Tags: Uncategorized

No results found.