How will PAN 2.0 be different from the existing card: Key changes explained

The government of India has come out with an upgraded PAN system that is being dubbed as PAN 2.0. Union Minister Ashwini Vaishnaw announced the plan on Monday and the Cabinet Committee on Economic Affairs has already given a green light to the project. It aims to make PAN a common business identifier for all the government agencies.

But how will it differ from the existing PAN Card that is in circulation? Here is a look at the Income Tax Department’s new plan.

The new features in PAN 2.0

Permanent Account Number or PAN was first introduced in 1972 and has been used as a taxpayer identification number for decades. The PAN 2.0 will be an upgrade in technology used in the system, in line with the government's Digital India plan. The Centre plans to spend Rs. 1,435 crore to upgrade the system

The new PAN card will have a QR Code to enable quick scans and more online functions. It is claimed that this will make the entire system digital and give it more security and effectiveness.

The new system aims to give the taxpayers a faster and improved experience through the ease of access that it offers. It will become a universal identifier for all business engagement in the specified domains of the field. The security system is also being upgraded to make it more secure and agile against growing threats.

The whole system will be paperless, making it a very eco-friendly project. It will also help the government in cost effectiveness.

“The existing system will be upgraded and the digital backbone will be brought in a new way… We will try to make it a common business identifier. There will be a unified portal, it will be completely paperless and online. The emphasis will be on the grievances redressal system,” Vaishnaw said while announcing the plan on Monday.

The existing PAN cards will be upgraded at no cost, according to the cabinet briefing. There are more than 78 crore PAN users in the country at the moment. It is an essential document used to track and link different documents related to tax payment, income tax return and assessments. It is also a system that helps the government detect tax evasion while broadening the tax base at the same time.