PAN 2.0 Project: A day after the Cabinet Committee on Economic Affairs approved PAN 2.0, the Income Tax Department issued a detailed clarification on the project.
About
Origin: Introduced in 1972; revamped in 1995 for improved tax compliance.
Department: Issued and managed by the Income Tax Department under the Central Board of Direct Taxes (CBDT).
Aim: To link individuals and entities with their tax-related transactions, ensure transparency, and streamline tax compliance.
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Comparison of PAN and PAN 2.0:
| Aspect | PAN | PAN 2.0 |
| Introduction Year | 1972 (revamped in 1995) | 2024 (Planned Upgrade) |
| Issuance System | Hosted on multiple platforms | Unified portal for all PAN/TAN services |
| Application Process | Partially online with paper-based options | Fully online, paperless process |
| QR Code | Introduced in 2017, basic validation | Enhanced dynamic QR code with real-time data |
| Updates/Corrections | Fee-based updates | Free updates for details like name, DOB, address |
| Data Security | No centralized data vault | Mandatory PAN Data Vault for enhanced cybersecurity |
| Business Identifier | PAN used for tax-related activities | Unified business identifier for multiple systems |
| Grievance Redressal | Limited, through individual portals | Streamlined grievance system via unified portal |
| Existing PAN Validity | Remains valid | Remains valid but upgrade available for free |
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