CBDT Clarifies Key Points on PAN 2.0 via FAQs

 The Central Board of Direct Taxes (CBDT) has issued a press release providing clarifications on the newly introduced PAN 2.0 system. Among the Frequently Asked Questions (FAQs) shared, two stand out for their importance: FAQ 3 and FAQ 7. These address concerns about the continued validity of existing PAN cards and the functionality of QR codes in PAN 2.0.

Highlights from the FAQs

FAQ 3: Continuity of Existing PAN Numbers

The CBDT has reaffirmed that taxpayers holding existing Permanent Account Numbers (PANs) need not reapply under the PAN 2.0 framework. The validity of their current PAN numbers remains unaffected.

This clarification eliminates confusion and ensures a seamless transition to the enhanced PAN 2.0 ecosystem for all existing cardholders.

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FAQ 7: QR Code Functionality

This FAQ addresses queries about the QR code feature on PAN cards, clarifying its purpose and applicability:

1. QR Code is Not a New Feature: The QR code was first introduced on PAN cards in 2017-18. PAN 2.0 will continue this feature with significant enhancements, including dynamic QR codes that reflect the latest data in the PAN database.
2. Applicability to Old PAN Cards:
• PAN holders with older cards that lack a QR code can opt for a new card incorporating the QR code.
• This option is available both in the existing PAN 1.0 ecosystem and the new PAN 2.0 framework.
3. Functionality of the QR Code:
• The QR code validates the PAN and associated details.
• A dedicated QR reader application is available for verification. Scanning the code reveals comprehensive information, including:
• Name
• Photo
• Signature
• Father’s or Mother’s Name
• Date of Birth

Implications for PAN Holders

• No Action Needed for Existing PAN Holders: Individuals with valid PAN cards can continue using them without changes.
• Enhanced Verification: Dynamic QR codes ensure up-to-date information, making PAN authentication more robust.
• Optional Upgrade: Those with older cards can upgrade to include a QR code if desired, but it is not mandatory.