The Permanent Account Number, i.e. PAN, has long been a cornerstone of India’s financial and administrative systems, connecting individuals and businesses to vital economic activities while promoting financial transparency and compliance.

As a key enabler of the digital economy, PAN has transformed into a gateway for essential services, making it indispensable in daily life. To enhance user-friendliness and align with technological advancements, the Cabinet has recently approved PAN 2.0, a step forward in redefining how PAN serves India's evolving digital and financial landscape.

The PAN 2.0 Project is a transformative initiative to modernise taxpayer registration through advanced e-governance. With a financial outlay of ₹1,435 crore, it re-engineers the PAN/TAN services to offer seamless digital experiences. This project aims to streamline and modernise the process of issuing and managing PAN and TAN, making it more user-friendly and efficient. The project addresses taxpayers' requirements, focusing on consolidating multiple platforms/portals and efficient services to PAN/ TAN holders.

PAN 2.0 Project enables technology driven transformation of Taxpayer registration services and has significant benefits including, a single portal for all PAN/TAN-related services to simplify access for users and eco-friendly paperless less processes to reduce paperwork.

PAN will be issued free of cost, with quicker processing times as well as personal and demographic data will be protected through enhanced security measures, including a PAN Data Vault. A dedicated call centre and helpdesk will be set up to address user queries and issues.

PAN 2.0 aims to revolutionise the existing system by integrating all PAN/TAN services into a unified portal, ensuring a seamless and paperless process. Free e-PAN services and simplified updates enhance convenience for taxpayers.

PAN-related services are currently hosted on three different portals, the e-Filing Portal, the UTIITSL Portal and the Protean e-Gov Portal. In the PAN 2.0 Project, all PAN/TAN-related services will be hosted on a single unified portal of the Income Tax Department. 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.

Allotment/updation/correction of PAN will be done free of cost, and e-PAN will be sent to the registered email ID. For a physical PAN card, the applicant has to request it along with the prescribed fee of Rs.50 for domestic taxpayers. For delivery of the card outside India, Rs.15 + India Post charges at actuals will be charged to the applicant.

Old PAN cardholders need not worry—existing PAN cardholders are not required to apply for a new PAN under the upgraded system. The current valid PAN cards will remain fully operational under PAN 2.0 unless holders request an update or correction. No new PAN card will be issued unless a specific request for updates or corrections is made.

PAN holders with older cards lacking a QR code can apply for a new card with a QR code under both the current PAN 1.0 system and the upgraded PAN 2.0. The QR code facilitates validation of PAN details, ensuring authenticity. A dedicated QR reader application is available to verify details. When scanned, it displays the holder's photo, signature, name, parents’ names, and date of birth.

The PAN 2.0 Project adopts global standards to enhance taxpayer registration with seamless digital processes and strong data security. It ensures compliance with key ISO certifications for quality, security, and service management, e.g. ISO 27001, ISO 9001. The project streamlines PAN/TAN registration with simplified online processes, minimal documentation, and centralised databases, improving user experience while safeguarding data through robust security and international best practices.

PAN 2.0 builds upon decades of evolution since the introduction of the Permanent Account Number in 1972. Designed as a unique 10-digit alphanumeric identifier, PAN links an individual or entity's financial transactions, such as tax payments, TDS/TCS credits, and income returns, to the Income Tax Department. By streamlining and modernising these processes, PAN 2.0 aims to enhance efficiency, security, and ease of access, ensuring a robust digital framework that simplifies compliance and strengthens financial transparency.

Overall, the PAN 2.0 Project marks a significant leap towards modernising India's tax system with enhanced digital processes, security, and greater accessibility. By shifting to a Direct Delivery Model and integrating global best practices, it promises a more streamlined and efficient experience for taxpayers, aligning with the government’s vision of a digital India. This initiative not only simplifies services but also ensures data security and transparency, fostering better tax compliance and governance.