Permanent Account Number (PAN) is the most important document for an Indian taxpayer. PAN, issued by the Income Tax Department, is crucial for any financial transaction. Be it the opening of an account, income tax filing, opening a business entity and purchasing property among others, the PAN is of utmost importance as through this document, the taxation department keeps a check on anyone's income which is corroborated with their annual return filing. Having such a crucial importance, there will be hardly any individual who does not possess a PAN card. In line with that, the cardholders must emphasise the recent Cabinet decision regarding PAN 2.0.
What did Cabinet approve?
As technology is evolving, it is crucial to upgrade the system so that the overhauled framework can enhance accessibility and benefit the consumer. To upgrade the PAN system, the government has brought PAN 2.0, which is an upgrade of PAN services. The Cabinet decision aims to streamline taxpayer registration and verification processes.
Another feature of PAN 2.0, which is different from PAN is the introduction of a unified portal for all PAN/TAN services. Currently, the PAN services are hosted by three portals namely,?e-Filing Portal, UTIITSL Portal and Protean e-Gov Portal. But as said before, in PAN 2.0 the IT Department will come up with a unified portal for all services.?
The most visible change in PAN 2.0 which will help the cardholders will be the introduction of QR. Although the PANs have already been issued with a QR code since 2017, those having an older card have no access to that service.
What Cabinet decision hold for existing cardholders?
Existing cardholders, who have a PAN number, need not worry as their PAN will not be changed. The latest decision like portal unification among others will be beneficial for any further PAN-related service or new applications. So, the existing PAN cards will be valid under PAN 2.0. As far as the QR codes are concerned, it is optional and those having older cards can get their card upgraded.?
What to do for QR card?
As per the information shared by the IT Department, any allotment, updates and correction of PAN will be done free of cost and the e-PAN will be sent to the registered email address. If a cardholder needs a physical PAN card, the applicant will have?to request along with the prescribed fee of Rs 50 (domestic). This must also be noted that for delivery of cards outside India higher charge is levied.
(With inputs from agencies)
