Lok Sabha Question No. 3364 (UNSTARRED), answered on 2024-12-16
Subject: New PAN Card
Ministry: FINANCE
Asked by: Shri Charanjit Singh Channi

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED QUESTION NO. 3364

TO BE ANSWERED ON MONDAY, THE 16 th  DECEMBER, 2024 AGRAHAYANA 25, 1946 (SAKA)

## 'New PAN Card'

3364.   Shri Charanjit Singh Channi: Will the Minister of FINANCE be pleased to state: (a) the rationale behind the introduction of a new PAN Card when the existing PAN card already contains a QR code for verification; (b) whether the Government has considered the financial burden the new PAN card might impose on economically weaker sections of society; (c) if so, the measures being taken to ensure that poor individuals can obtain the new PAN card without difficulty or additional cost; (d) whether the Government has conducted any cost-benefit analysis of introducing the new PAN card; (e) the estimated expenditure involved in implementing the new PAN card system; (f)  whether  the  Government  plans  to  address  concerns  about  the  wastage  of  public  money  and provide alternatives to avoid redundant expenses; (g)  whether  the  Government  has  made  any  consultations  with  stakeholders  to  assess  the practicality of implementing the new PAN card system; and (h) the steps proposed to ensure a seamless transition for citizens holding the current PAN cards?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a)  PAN 2.0 Project is an e-Governance project of Income Tax Department (ITD) for re-engineering the business processes of taxpayer registration services. Under this project, ITD is consolidating all processes related to PAN/TAN services leveraging latest technologies. The PAN 2.0 Project focuses on  process  simplification  enhancing  the  overall  experience  for  taxpayers  by  ensuring  faster  service delivery, effective grievance redressal, and better protection of sensitive data. Further, the QR code is not  a  new  feature  and  it  has  been  incorporated  in  the  PAN  cards  since  2017-18.  The  same  will  be continued under PAN 2.0 project with enhancements (dynamic QR code which will display latest data present in PAN database).

(b)  Since the existing PAN holders are neither required to apply for new PAN nor obtain a new PAN card under PAN 2.0, there will not be any financial burden on PAN holders including economically weaker sections of society.

(c) The existing PAN holders are not required to obtain new PAN card under PAN 2.0 project. After the commencement of PAN 2.0 project, processing of prospective request received for allotment/updation of PAN and issuance of e-PAN thereof will be done at free of cost . Only in case, where the PAN applicant opts for physical PAN card, payment needs to be made.

(d) Existing PANs/PAN cards will remain valid under PAN 2.0 which is a project to re-engineer the PAN/TAN processes of Income Tax Department (hereinafter 'ITD'). Under PAN 2.0, no new PAN card  has  been  introduced  to  replace  the  existing  cards.  Further,  the  estimated  cost  and  expected benefits of such process re-engineering were analyzed and the Detailed Project Report (DPR) prepared thereon has been appraised and recommended by Public Investment Board (PIB) and further supported by the Department of Expenditure (DoE).

(e) Under PAN 2.0, no new PAN card has been introduced to replace the existing cards. The estimated cost of the PAN 2.0 project is Rs. 1435 Crores.

(f)  PAN 2.0 project is  about re-engineering of business processes related to PAN/TAN services for prospective  allotments/updations  and  no  new  PAN  card  has  been  proposed  in  the  place  of  already issued PAN cards. The upgradation is in the interest of improved taxpayer services and there is no wastage of public money. Hence, no redundant expenses are involved in this project.

(g)  Yes  sir.  For  PAN  2.0  project,  consultations  were  held  with  the  field  formation  of  ITD,  UIDAI, SEBI,  RBI,  MCA,  GSTN  etc.  Further,  the  project  has  been  evaluated  by  the  Standing  Technical Committee (STC) and appraised and endorsed by Empowered Technology Group (ETG) of Govt. of India. (h)  The  existing  PAN  cards  held  by  the  citizens  will  continue  to  be  valid.  Hence,  there  is  no requirement of transition for citizens from the current/existing PAN card.

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