Cabinet Approves PAN 2.0 Upgrade, New Cards to Include QR Code

The Union Cabinet has approved an upgrade to the existing Permanent Account Number (PAN) system, introducing a QR code feature on the cards. The proposal also aims to establish PAN as the “common identifier for businesses.”

The Cabinet sanctioned the PAN 2.0 Project of the Income Tax Department, which will be implemented at a cost of ₹1,435 crore. This project will fully revamp the existing system, enhance the digital infrastructure, and make PAN the unified business identifier for all digital systems across specific government agencies, said Information and Broadcasting Minister Ashwini Vaishnaw during the Cabinet briefing.

Upgrading PAN cards for current holders will incur no additional cost.

The PAN 2.0 initiative is designed to drive a technology-based transformation in taxpayer registration services, focusing on better access and improved service delivery, according to an official statement. The project aims to establish PAN as the “single source of truth,” ensuring data consistency, while also enhancing security and optimizing infrastructure for greater flexibility.

A senior Finance Ministry official stated, “The new PAN cards will include a QR code, and current cardholders will have the option to upgrade their existing cards to the QR code-enabled versions.”

To date, around 78 crore PAN cards have been issued, with 98% of them belonging to individuals.

Minister Vaishnaw highlighted that businesses have long demanded a single identification number, and the updated PAN will address this need by serving as the common business identifier. A unified, paperless portal will be launched to replace outdated software, which is 15-20 years old. The new system will focus significantly on grievance redressal.

The PAN 2.0 project is part of the e-governance initiative to streamline and modernize the business processes associated with taxpayer registration services, particularly PAN and TAN services.