The central government has approved the PAN 2.0 project by the Income Tax Department. Soon, people will receive a new PAN card featuring a QR code, aligning with the government’s ambitious Digital India campaign.
Many questions arise regarding this new initiative, such as what a PAN card is, how it is made, the future of old PAN cards, the reasons behind the change, and any associated fees. Let’s address these questions.
What is a PAN Card?
A Permanent Account Number (PAN) is issued by the Income Tax Department. It is primarily used for financial activities, such as paying income tax, opening a bank account, or purchasing property. The PAN card features a 10-digit number, which records all financial transactions related to an individual, including earnings, tax payments, and investments.
Why is the Government Introducing a New PAN Card?
The central government has announced the introduction of PAN 2.0 to upgrade the existing PAN system. According to Union Minister Ashwini Vaishnav, the PAN 2.0 project is an e-governance initiative aimed at enhancing the security and ease of PAN authentication. The current PAN system software is outdated, operating for the past 15-20 years, and needs a modern upgrade. PAN 2.0 is designed to provide a better digital experience for taxpayers.
How to Get a New PAN Card?
If you already have a PAN card, you do not need to take any action. A new PAN card will be sent to your registered address without any cost. If you don’t yet have a PAN card, you will need to apply for either a digital or physical PAN card.
What’s New in the New PAN Card?
The updated PAN card will include new features like a QR code (QR Code PAN Card), aimed at enhancing the user experience. This initiative will contribute to making the PAN 2.0 project more valuable under the Digital India campaign. Linking PAN with Aadhaar is also emphasized, which will help individuals access various government schemes.
How to Apply for a PAN Card
A PAN card is as important as an Aadhaar card, especially for financial matters. It can be applied for digitally or physically.
- For an Online PAN Card: You can apply for an Instant e-PAN for free via the Income Tax e-filing portal. This is available for adult taxpayers who do not yet have a PAN and have their valid Aadhaar linked with their mobile number.
- Fee for a New PAN Card: If you have lost or damaged your old PAN card and are applying for a replacement, there may be a fee of around ₹100.
Step-by-Step Process of Making a PAN Card
- Visit a PAN Service Agency: Find your nearest PAN service provider to apply for a new card.
- Provide Necessary Information: Submit your mobile number for OTP verification, name, Aadhaar number, and personal details.
- Choose Verification Option: Select from eKYC or scan-based verification.
- Pay Fees:
- ₹107 for a physical PAN card.
- ₹72 for a digital ePAN card.
- eKYC Authentication: After payment, your details will undergo eKYC authentication.
- Upload Documents: Complete the upload of the necessary documents after eKYC verification.
- OTP Submission: Enter the OTP received on your registered mobile number and submit the form.
- Get an Acknowledgment Number: After submission, you will receive an acknowledgement number. You can track your PAN card status using this number.