The Income Tax Department is modernising the Permanent Account Number (PAN) system with an initiative called PAN 2.0. The new system is expected to be implemented in the coming months, approximately 18 months after the tender was awarded. This initiative, also known as PAN 2.0, is designed to bring several significant changes and improvements to the existing system. It is said to remove all the bottlenecks that the previous project was facing.

New PAN 2.0 Features
The current PAN system will not become obsolete. Instead, the government aims to enhance it with modern technology to improve efficiency and service delivery. The contract for the PAN 2.0 project has been awarded to a consulting and digital solutions company. This new system is set to be more technologically advanced and user-friendly.

What changes will come into effect with PAN 2.0?

The primary goal of PAN 2.0 is to simplify and expedite the processes related to PAN and TAN (Tax Deduction and Collection Account Number). The government's objective is to provide quicker and more efficient services to the public by using the latest technology.

One-Stop Solution for PAN/TAN Services

PAN 2.0 will serve as a unified, one-stop solution for all services related to PAN and TAN, including:

-Allotment, correction, and updates
-Aadhaar-PAN linking
-Online validation
-Reissuing PAN cards

The new system will be primarily paperless, with most processes conducted online. Allotment, updates, or corrections of PAN details will be free of charge, and an e-PAN will be sent to the registered email ID. For a physical card, a nominal fee will be charged.

Will my old PAN card become useless?
No, after the implementation of PAN 2.0, your existing PAN card will not become invalid. There is no requirement for current PAN holders to apply for a new card. The new system is designed to seamlessly integrate with all existing PANs.

Currently, PAN-related services are spread across three different platforms: the e-Filing Portal, the UTIITSL Portal, and the Protean e-Gov Portal. The PAN 2.0 initiative will integrate all these services into a single, unified portal to improve the user experience and simplify processes.

Company Managing PAN 2.0
The PAN 2.0 project's database will be managed by LTIMindtree. According to reports from PTI and other news agencies, the Income Tax Department has awarded a tender worth Rs 792 crore and over, to the company for this project.