The government has awarded the contract for the PAN 2.0 project of the Income Tax Department to technology consulting and digital solutions company, LTIMindtree Limited, with the project expected to go live in 18 months, officials said. When the PAN 2.0 Project was approved by the Union Cabinet in November 2024, the government had said it would have a financial implication of Rs 1,435 crore.
There were other contendors also for the project. Earlier, in May this year, Protean eGov Technologies had stated that it had participated in the Income Tax Department’s Request for Proposals (RFP) bid for the project for selection of the Managed Service Provider (MSP) for design, development, implementation, operations and maintenance of the PAN 2.0 Project but the company had not been selected.
At 1454 IST, shares of LTIMindtree were trading at Rs 5,089 per share, up 1.43 per cent from the previous close on BSE.
The PAN 2.0 Project aims to simplify the PAN/TAN processes for better quality of service to the public, faster service delivery and improve grievance redressal mechanisms by leveraging latest technologies, an official said. PAN 2.0 Project will handle comprehensively issues/matters related to PAN and TAN, including allotment, updates/corrections, Aadhaar-PAN linking, re-issuance requests, online PAN validation etc. as a one-stop platform, the official added.
Under the PAN 2.0 project, the 10-digit alphanumeric Permanent Account Number (PAN) issued by the Income Tax Department is set to have a slew of upgrades – enhancement of the QR code feature for new and old cards, a completely online application process and a merger of all existing identification numbers to make PAN as the common identifier for businesses. The QR code feature, which began in 2017-18, helps validate the PAN. This feature will continue with some enhancements. Additionally, a “PAN data vault system” will be created for all entities using PAN data, for data protection and cybersecurity purposes.
PAN acts as an identifier for the person with the tax department and remains the same once allotted. Of the 78 crore PAN cards issued, 98 per cent belong to individuals. PAN enables the I-T Department to link transactions such as tax payments, Tax Deducted at Source (TDS)/Tax Collected at Source (TCS) credits and income returns with the Department. TAN stands for Tax Deduction and Collection Account Number, a 10-digit alphanumeric number issued by the I-T Department. TAN has to be obtained by people responsible for deducting or collecting tax at source. It is compulsory to quote TAN in TDS/TCS return, any TDS/TCS payment challan and TDS/TCS certificates.
With PAN already linked to Aadhaar, it is expected to become a strong source of identification and information for authorities. Existing PAN cards will continue to be valid under PAN 2.0.
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Existing PAN holders need not mandatorily apply for the new card but could upgrade their PAN free of cost. The number or PAN would remain the same. The allotment or update or correction of PAN will be done free of cost and e-PAN will be sent to the registered email ID. For a physical PAN card, the applicant has to make a request along with a fee of Rs 50 (domestic). For delivery of cards outside India, Rs 15 plus postal charges will be charged, a set of FAQs issued by the government last year had stated.
Currently, PAN-related services are spread across three platforms: the e-filing portal, the UTIITSL portal, and the Protean e-Gov portal. These services will now be integrated into a single, unified portal. “This one-stop platform will comprehensively handle issues/matters related to PAN and TAN… By doing so, the I-T Department endeavours to simplify processes, eliminate delays, and improve grievance redressal mechanisms,” the FAQs had said.
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