The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the PAN 2.0 Project initiated by the Income Tax Department. This initiative, with a financial outlay of ₹1,435 crore, aims to enhance taxpayer services and align with the government’s Digital India vision.

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Key Features of the PAN 2.0 Project

1. Free PAN Upgrade with QR Code
   Union Information and Broadcasting Minister Ashwini Vaishnaw announced that taxpayers will receive upgraded PAN cards at no cost. These cards will feature a QR Code for enhanced functionality.
2. Unified, Paperless System
   The project includes a unified portal that will be completely online and paperless, streamlining access and services for taxpayers. It also prioritizes addressing taxpayer grievances effectively.
3. Integration with Government Agencies
   PAN 2.0 establishes the Permanent Account Number (PAN) as a unified identifier across digital platforms of specified government agencies, ensuring seamless integration of data and services.

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Objectives and Benefits of PAN 2.0

The PAN 2.0 Project focuses on modernizing taxpayer registration services by leveraging technology to enhance the digital experience. Key benefits include:

Improved Service Delivery: Faster and more efficient services with enhanced quality.

Data Consistency: A single source of truth ensuring uniform and accurate information.

Eco-Friendly and Cost-Efficient: Optimized processes to reduce costs and environmental impact.

Enhanced Security: Strengthened infrastructure for improved safety and agility.

This initiative represents a significant upgrade from the existing PAN/TAN 1.0 system, incorporating advanced features for both core and non-core activities, including PAN validation.

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Understanding PAN and Its Role

What is PAN?
A Permanent Account Number (PAN) is a 10-character alphanumeric identifier issued by the Income Tax Department. It links individuals and entities to the tax system, facilitating monitoring and compliance.

Functions of PAN

Tracks tax payments, TDS/TCS credits, income returns, and specific financial transactions.

Links financial activities such as investments, loans, and business dealings.

Enables streamlined tax assessments, demand resolution, and arrears tracking.

Assists in detecting tax evasion and expanding the tax base.

Current Statistics

Approximately 78 crore PANs have been issued to date, with individuals comprising 98% of the total.

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Conclusion

The PAN 2.0 Project is a transformative e-Governance initiative designed to simplify taxpayer interactions, improve data integration, and promote digital transparency. It underscores the government’s commitment to modernizing tax systems and fostering a more connected and efficient ecosystem for taxpayers.