PAN 2.0: ₹1,435-Crore Taxpayer Registration Overhaul
Why in the news
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, cleared a ₹1,435-crore project to modernise how permanent account numbers are issued and managed.
Key facts
- Outlay: ₹1,435 crore, approved by the CCEA.
- Goal: a common business identifier for the digital systems of government agencies.
- PAN: a unique 10-digit alphanumeric number issued by the Income Tax Department.
- Data safeguard: personal data protection will be compulsory for every entity using PAN data.
- Cards: current PANs remain valid; new cards with features such as QR codes come at no extra cost.
- The Income Tax department was yet to announce the application process.
About PAN 2.0
An e-Governance project that re-engineers taxpayer registration services and upgrades the existing PAN/TAN 1.0 ecosystem to improve the digital experience of taxpayers.
Intended benefits
| Area | Benefit |
|---|---|
| Speed | Quicker processing of applications and updates, less waiting |
| Data | Unified database for consistency and fewer errors |
| Cost | Free upgrade for existing PAN holders; cost optimisation |
| Sustainability | Digital, paperless procedures |
| Security | Reliable technology to protect sensitive taxpayer data |
Exam angle
- Approving body: CCEA.
- PAN length: 10 alphanumeric characters.
- Related terms: PAN/TAN 1.0, QR code, single source of truth.