India's PAN cards are being updated. Do I need to change my card?

Dubai: India has embarked on a new project to enhance the quality of Permanent Account Number (PAN) services through the adoption of latest technology.

Under this project, the Income Tax Department is consolidating  all processes related to PAN allotment and updation. The online, paperless process will be done free of cost, and a small fee will be charged for a new physical card.

Here’s a look at what PAN 2.0 is all about and whether you need to change your existing card.

Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department.

PAN enables the department to link all transactions of a person with the department. These transactions include tax payments, returns of income and specified transactions. Therefore, PAN acts as an identifier for a person with the tax department.

PAN 2.0 is an e-governance initiative by the Income Tax Department aimed at modernising taxpayer registration services. This project re-engineers existing processes to enhance service quality through advanced technology. It offers secure data storage by keeping personal information in a secure PAN data vault, QR code integration for easier access to updated PAN data, and a unified portal consolidating all PAN/TAN-related services for convenience. Additionally, the project aims to minimise fraudulent activities.

The project is aligned with the government's broader Digital India vision, aiming to improve service delivery, ensure better security, and provide a seamless digital experience to taxpayers.

The new PAN Card 2.0 system introduces key advancements, including mandatory Aadhaar linkage, real-time data validation, and advanced analytics to strengthen security and combat fraud effectively. Here are the core features of PAN Card 2.0:

QR code integration: The PAN 2.0 card includes a QR code for quick verification and easy access to taxpayer information.

Unified digital platform: A single platform consolidates all PAN-related services, making it easier for users to manage their accounts online.

Enhanced cybersecurity: Improved measures ensure taxpayer data is protected from unauthorised access and breaches.

Eco-friendly operations: By going paperless, PAN 2.0 reduces environmental impact and operational costs.

Secure PAN data vault: A dedicated vault ensures safe storage for entities using PAN data, bolstering privacy and security.

Mandatory Aadhaar linkage: The new system ensures that Aadhaar is linked to PAN for enhanced verification and fraud prevention.

Real-time validation: Immediate validation of PAN details improves accuracy and reduces errors in the system.

Advanced data analytics: Sophisticated technology will help detect and prevent fraudulent activities more effectively.

No, you do not need to apply for a new PAN card under the PAN 2.0 system. Existing PAN cards remain valid and operational, and a new card is only necessary if you need to update or correct details such as your name, date of birth, email address, mobile number or address.

Yes, older PAN cards without QR codes will continue to function. The QR code feature, introduced in 2017-18, is now being enhanced under PAN 2.0 to dynamically display the latest data. Holders of older cards can optionally apply for a new card with a QR code if they wish.

Holding more than one PAN is prohibited under the Income Tax Act, 1961. Individuals with duplicate PANs must report this to their Jurisdictional Assessing Officer to deactivate the extras. PAN 2.0 uses improved logic and centralised mechanisms to identify and resolve duplicate PAN cases, reducing the likelihood of multiple PANs being issued to the same individual.

To avoid scams related to PAN 2.0, it is important to know that upgrading to PAN 2.0 is not mandatory. Do not entertain calls, messages, or emails claiming you must upgrade your PAN card for a fee. Avoid clicking on suspicious links or sharing sensitive information like OTPs or account details. Refer to advisories for further guidance on preventing fraud.

For accurate and verified information about PAN 2.0, visit the official Income Tax Department website. If you need a reprint of your PAN card, use authorised portals such as Protean (formerly NSDL) or UTIITSL. No agencies outside of these two are authorised to issue PAN card reprints, so always rely on official sources to avoid misinformation.