The Income Tax Department has announced the PAN 2.0 Project,
a major modernization initiative aimed at providing seamless, secure,
and user-friendly taxpayer services. The project, with a financial outlay
of Rs. 1,435 crore, will consolidate all PAN/TAN-related
services under a single digital platform.
IT services major LTIMindtree has been awarded the contract,
and the new system is expected to go live within 18 months.
a major modernization initiative aimed at providing seamless, secure,
and user-friendly taxpayer services. The project, with a financial outlay
of Rs. 1,435 crore, will consolidate all PAN/TAN-related
services under a single digital platform.
IT services major LTIMindtree has been awarded the contract,
and the new system is expected to go live within 18 months.
Key Highlights of PAN 2.0
- All PAN and TAN services integrated into a single unified portal.
- Eco-friendly paperless processes with faster online services.
- Free e-PAN issuance and simplified updates for taxpayers.
- Enhanced data security through a PAN Data Vault.
- Dedicated call center and helpdesk for grievance resolution.
Services Offered Under PAN 2.0
| Service | Description |
|---|---|
| PAN/TAN Allotment | Online application and instant e-PAN issuance with free processing. |
| Updates & Corrections | Free online updates, demographic corrections, and paperless verification. |
| Aadhaar-PAN Linking | Seamless Aadhaar linkage for tax compliance and verification. |
| Online PAN Validation (OPV) | Instant verification of PAN details through dynamic QR codes. |
| Grievance Handling | Centralized support through a dedicated helpdesk and call center. |
QR Code Feature in PAN 2.0
- Dynamic QR codes display the latest PAN database information.
- Old PAN holders without QR codes can request a new card with enhanced features.
- QR codes can be scanned via the PAN Reader app to validate authenticity.
Who Needs to Obtain PAN?
- Individuals with taxable income above the exemption limit.
- Charitable trusts required to file returns under Section 139(4A).
- Businesses with turnover exceeding Rs. 5 lakh annually.
- Individuals or entities entering into financial transactions of Rs. 2.5 lakh or more.
Penalty for PAN Non-Compliance
- Penalty of Rs. 10,000 under Section 272B for failure to obtain or misuse PAN.
- No individual can hold more than one PAN; duplicates must be surrendered.
- PAN 2.0 has enhanced checks to detect and prevent duplicate PAN issuance.
TAN Allotment
TAN (Tax Deduction and Collection Account Number) is mandatory for entities responsible
for TDS/TCS. It ensures proper tax deduction tracking and compliance with the Income Tax Act.
PAN cannot replace TAN except under special provisions like Section 194-IA.
Conclusion
The PAN 2.0 Project marks a significant step towards
a Digital India, streamlining tax administration with
seamless, secure, and paperless processes. By adopting global standards
and integrating advanced technology, the initiative aims to enhance
taxpayer convenience, improve compliance, and strengthen India’s
financial transparency framework.
Source: Press Information Bureau (PIB), Income Tax Department
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