PAN 2.0 to go live in 18 months: What it means and how it affects you
The Income Tax Department has chosen LTIMindtree to lead a major digital upgrade of India’s PAN and TAN systems. The project, known as PAN 2.0, aims to make the process of issuing, updating, and managing PAN and TAN easier, faster, and more secure for users.
The Rs 1,435 crore project will focus on simplifying taxpayer registration services and improving the overall experience through a new, unified online platform.
LTIMindtree, a part of the Larsen & Toubro group, won the bid with an adjusted bid value of around Rs 792 crore, according to government officials.
WHAT IS PAN 2.0?
The PAN 2.0 Project is a major step towards modernising how taxpayers register and manage their PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) through digital systems.
With a budget of Rs 1,435 crore, it aims to bring all related services onto one platform, making them faster, easier to use, and more efficient for users.
Currently, the Income Tax Department has more than 78 crore PANs and over 73 lakh TANs in its database.
WHAT WILL CHANGE?
The PAN 2.0 Project brings a tech-led change to taxpayer registration services, offering several user-friendly features. It will provide a single portal for all PAN and TAN services, making access easier.
The entire process will be paperless and eco-friendly. PANs will be issued free of cost with much faster turnaround times.
Stronger security, including a PAN Data Vault, will help protect personal information. A dedicated call centre and helpdesk will also be available to assist users with their concerns.
WHEN WILL IT GO LIVE?
The upgraded system is expected to be ready in the next 18 months, a person familiar with the project said.
The Cabinet Committee on Economic Affairs cleared the project in November 2024.
Meanwhile, the government hopes that by integrating and streamlining PAN and TAN services, it can offer quicker, more reliable services to taxpayers while reducing operational costs. The platform will also help in improving transparency and make it easier to track financial activities for tax compliance.
