Will you need to apply for a new PAN?
No, existing PAN holders won’t need to apply for a new PAN under the PAN 2.0 Project. However, they will have the option to upgrade to the new PAN 2.0 card. The government has confirmed that all current PAN cards will remain valid even after the upgrade.
Will there be a charge for a new PAN card?
No, taxpayers will not incur any costs. As part of the project, new PAN cards with enhanced features, such as a QR code for better security, will be provided free of charge.
What about those with older PAN cards?
Older PAN cards will continue to be valid. New cards with upgraded features, including QR codes, will be issued to all holders, but it is not mandatory to switch from existing PANs.
According to Aseem Mowar, Tax Partner, EY India, this initiative is expected to benefit not only large businesses but also small businesses and the average middle-class taxpayer by addressing compliance costs and streamlining business operations.
With the underlying objective of creating a single source of truth through a unified portal, as well as ensuring ease and speedy delivery of services, the project should significantly simplify tax-related processes and enable more efficient digital integration with government services.
“The significant step of creating and deploying a QR code in the PAN 2.0 system will automatically bring in inherent efficiencies and allow for quick and easy access to information simply by scanning. This technological upgrade of the PAN will be a great boon to small-scale businesses, ensuring minimal or no errors and thus safeguarding against the loss of tax credits,” stated Mowar.