NRIs; The Cabinet Committee on Economic Affairs (CCEA) has given the green light to the ambitious PAN 2.0 Project, allocating ₹1,435 crore to revamp India’s Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) systems. Announced on November 25, 2024, this transformative initiative promises to redefine taxpayer registration services with a robust, technology-driven approach while enhancing the functionality of PAN cards by incorporating a QR code.
Union Minister Ashwini Vaishnaw, unveiling the project, emphasized its goal of improving efficiency and taxpayer convenience. “Citizens can rest assured that existing PAN cards remain valid, but they’ll have the option to upgrade to a QR-code-enabled card, free of cost,” said the Minister.
What is the PAN 2.0 Project?
The PAN 2.0 Project is a cutting-edge e-governance initiative aimed at re-engineering taxpayer registration services. It seeks to consolidate and optimize PAN and TAN processes while enhancing the digital experience for taxpayers. Key upgrades include using PAN as a universal identifier for digital systems across government agencies and delivering eco-friendly, secure, and agile services.
The project’s benefits include:
- Speedy Service Delivery: Improved accessibility and faster processing for taxpayers.
- Data Consistency: A unified source of truth ensures accuracy across databases.
- Cost Optimization: Reduced dependency on paper-based processes.
- Enhanced Security: Upgraded infrastructure ensures data safety and system resilience.
PAN Cards with QR Codes: A New Chapter for Taxpayers and NRIs
The integration of QR codes on PAN cards is the standout feature of the PAN 2.0 Project. These codes will facilitate seamless authentication and verification of taxpayer details. The QR-enabled PAN cards will be available at no additional cost, ensuring that every taxpayer benefits from this upgrade.
Non-Resident Indians (NRIs) also stand to gain from the project. NRIs required to file income returns or undertake financial transactions mandating PAN usage must secure this identity proof. Applications can be processed online or offline through the designated centers of UTIITSL or Protean (formerly NSDL eGov).
NRIs; Do You Need a New PAN Card?
The government has clarified that taxpayers are not required to obtain a new PAN number. Existing PAN cards will remain valid, and the QR-code-enabled upgrade is entirely optional. This move ensures a smooth transition without disrupting current systems.
For those interested, upgrading their PAN cards is simple and cost-free. This proactive step underscores the government’s commitment to enhancing user convenience without imposing financial or procedural burdens.
Application Process for NRIs
For NRIs, applying for a PAN card involves submitting Form 49A with supporting documents. Here’s a quick guide:
- Proof of Identity: Copy of passport.
- Proof of Address: Options include a copy of the passport, bank statement from the country of residence, or NRE bank account statement (duly attested).
- Application Fee: ₹994 if the communication address is outside India.
Applicants can opt for online submission via the websites of UTIITSL or Protean or visit their centers to complete the process offline.
Correcting Errors or Surrendering Duplicate PAN Cards
Mistakes in PAN data can be rectified using the “Request for New PAN Card or/and Changes or Correction in PAN Data” form. Applications for corrections can be submitted online or offline with requisite documents and fees.
Holding multiple PAN cards is prohibited and can attract a penalty of ₹10,000 under Section 272B of the Income Tax Act, 1961. Taxpayers with duplicate PANs should surrender the extras immediately.
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