PAN 2.0 vs Old PAN: Key differences you need to know

PAN 2.0 is an e-Governance project designed to re-engineer taxpayer registration services. The project leverages the latest technology to enhance PAN service quality by consolidating all processes related to PAN and TAN allotment, updates, and corrections. It also provides online PAN validation for financial institutions, banks, and government agencies.

PAN 2.0 integrates services currently spread across multiple platforms into a single unified portal. It also introduces paperless processes, makes Permanent Account Number( PAN)/Tax Deduction and Collection Account (TAN) allotment/updates/corrections free of charge (e-PAN sent to registered email), and charges a nominal fee for physical PAN cards (Rs 50 domestic, Rs 15 + postal charges for international delivery).

Saket Gokhale, Member of Parliament, Lok Sabha asked the following questions from the government about the PAN 2.0 project. He asked the government to state the difference between older PAN cards with QR codes and the new PAN cards proposed to be issued under the PAN 2.0 project.

The government replied in Parliament and said that PAN cards issued since 2017 as well as the PAN card that will be issued under PAN 2.0 project have QR code. However, under the PAN 2.0 project, the QR code will have further enhancements (dynamic QR code which will display the latest data present in the PAN database.) The existing PAN cards will continue to be valid under PAN 2.0 and there is no requirement for existing PAN holders to obtain a new PAN card.

Dynamic QR codes with updated data will be part of PAN 2.0. Holders of older cards can apply for a new QR-coded card under the existing system or with PAN 2.0

According to a PIB release, “Section 272B of the Income-tax Act imposes a penalty of Rs. 10,000 for taxpayers who fail to comply with PAN-related provisions. This includes not obtaining a PAN when required, knowingly quoting an incorrect PAN on prescribed documents, or providing an incorrect PAN to the person deducting or collecting tax.”

As per the Income Tax Act, no individual is allowed to hold more than one PAN. If a person does hold multiple PANs, they must inform the Jurisdictional Assessing Officer and request the additional PAN to be deactivated or deleted.