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10 months ago
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ARTICLE AD BOX
The Income Tax (I-T) Department is expected to bring its ambitious ₹1,435 crore PAN 2.0 project live next year, and has chosen IT major LTIMindtree as the Managed Service Provider (MSP) for the design, development, implementation, operations, and maintenance of the project.
Expected to be a “one-stop platform” to comprehensively handle matters related to PAN and TAN, such as allotment, updates or corrections, Aadhaar-PAN linking, re-issuance requests, online PAN validation etc., it is aimed at simplifying the PAN and TAN processes, enhance quality of service, and improving grievance redressal mechanisms.
PAN 2.0: What does its implementation mean?
The Cabinet Committee on Economic Affairs (CCEA) approved the I-T dept's ₹1,435-crore project on November 25, 2024.
At present, PAN-related services are spread across three different platforms — the e-Filing Portal, UTIITSL Portal, and Protean e-Gov Portal. With PAN 2.0, services will be merged into a single, unified portal.
PAN 2.0 will comprehensively use technology for paperless processes. Allotment / updation / correction of PAN will be done free of cost and e-PAN will be sent to the registered mail ID.
What should existing PAN card holders do?
A 10-digit alpha-numeric number, Permanent Account Number (PAN) is issued by the I-T dept to Indian taxpayers. Similarly, Tax Deduction and Collection Account Number (TAN) is a 10-digit alpha-numeric number that is obtained by all persons responsible for deducting tax at source or who are required to collect tax at source.
PAN has an existing database of over 81.24 crore, while TAN has more than 73 lakh holders. These existing PAN holders are not required to apply for a new one under the upgraded PAN 2.0 system.
What are the benefits of PAN 2.0?
This involves ease of access, speedy service delivery with improved quality, a single source of truth and data consistency, eco-friendly processes and cost optimisation, and security and optimisation of infrastructure for greater agility, according to an official statement.
Why the upgrade?
The government aims to enable the Pan 2.0 project under Digital India, which will make PAN eligible as a common identifier for all digital systems of specified government agencies.
The new system aims to upgrade the current PAN/TAN 1.0 eco-system, consolidating the core and non-core PAN/TAN activities and the PAN validation service, as per the official release.
What will the QR code help us with?
The QR code has been incorporated in PAN cards since 2017-18. The same will be continued under the PAN 2.0 project with enhancements such as a dynamic QR code that displays the latest data present in the PAN database.
PAN holders who have an old PAN Card without a QR code have the option to apply for a new card with a QR code in the existing PAN 1.0 ecosystem as well as in PAN 2.0.
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