PAN Card 2.0: Features, Process, Benefits and More

PAN Card 2.0 is an initiative by the Government of India to simplify and secure the process of using and obtaining a PAN card. The Permanent Account Number (PAN) is a crucial document for businesses and individuals to comply with income tax laws and track financial transactions in India. The launch of the PAN 2.0 project takes this a step further, as it is an upgraded version of the PAN Card that now features a QR code. This modernization and innovative approach by the government creates a paperless and online ecosystem in India for all taxpayers.

This guide provides comprehensive information about the new PAN Card 2.0 for NRIs, including its features, benefits, eligibility criteria, pricing details, application process, and more.

The Agenda Behind PAN 2.0?

The Cabinet Committee on Economic Affairs (CCEA) granted permission on November 25, 2024, for the PAN 2.0 Project, which was initiated by the Income Tax Department of India. The total budget allocated for the project is 1,435 crore. The primary objective of this project is to re-engineer the registration services for taxpayers by leveraging technology to enhance the TAN and PAN services, ultimately providing taxpayers with a seamless and improved digital experience.

PAN 2.0 project is a significant upgrade to the existing Permanent Account Number (PAN) framework, as 2.0 will integrate both core and non-core PAN and TAN services. Along with this, to align with the government's Digital India vision program, PAN validation will also transform into a unified paperless platform.

Key Features of PAN Card 2.0

Out of many, some of the key features of the Permanent Account Number (PAN) Card 2.0 are listed below.

• The primary key feature of PAN 2.0 is that it will enhance the current PAN framework by modernizing it and integrating advanced technology to improve the efficiency of PAN operations.
• To expedite the verification process and access to taxpayer details, PAN 2.0 will feature an integrated QR code; upon scanning, you will be able to access the holder's information.
• There will now be a single, unified platform that combines all PAN-related services, enabling users to manage their accounts easily.
• Cybersecurity measures have been improved under this project to protect the taxpayers' data from unauthorized breaches and access.
• PAN 2.0 isn't just helping the user but also Mother Earth by going paperless, which reduces its environmental impact.
• Since the entire project is driven by cutting-edge technology, this will enable the detection and shutdown of fraudulent activities much faster and more effectively.

Why Do NRIs Need A PAN?

NRIs are required to obtain a Permanent Account Number (PAN) card if they are engaged in any financial or economic transactions in India, where a PAN card is mandatory. Additionally, even if they need to file an income tax return in India, they must have a PAN card.

Documents NRIs Need for PAN Application.

NRIs must gather all the documents mentioned below to apply for a PAN application.

• Passport Copy
• Address Proof: Utility Bills, a copy of a bank statement from the resident's country of origin is required. Alternatively, a copy of their NRE bank account statements, which must have a minimum of two transactions made within the last six months, can also be provided. This copy has to be attested by the Indian Consulate, the bank manager, or the High Commission.
• Proof of DOB: School leaving certificate, Birth Certificate, Passport.
• In cases where NRIs lack an Indian address, they can provide their country of residence address, their office address, or their residential address.
• Two recent passport-size photographs
• If you are an Indian citizen, you must fill out Form 49A; a foreign national can apply for Form 49AA.
• Proof of identity: Aadhar Card, Passport, Driving Licence, etc.

Note that all documents outside India must be attested by either the Indian consulate or embassy or apostilled by the competent authority (as per the Hague Convention).

Are NRIs Eligible for PAN 2.0?

Yes, NRIs are eligible to apply for a PAN 2.0, but they must be an existing PAN holder to be eligible for a new PAN Card 2.0.

PAN Card 2.0 QR Code

This new, modernized PAN Card 2.0 features a QR code that stores all the information of the PAN Card holder in a digital format. Upon scanning the QR code, it fetches the current data from the Government of India database, which also ensures the legitimacy of the information being detected. Upon scanning, you can also verify the PAN Card holder's details and the card's authenticity.

The data hidden in the QR code is encrypted and contains information such as the PAN holder's full name, number, date of birth, Aadhaar card number, and other relevant details. This quick scanning speeds up and simplifies the verification process. Apart from this, when the PAN card is integrated with Aadhaar, the QR Code also enhances KYC verification by reducing manual checks, as everything is now handled by technology.

Features of QR Code

Not just the PAN Card 2.0, but the QR code also comes with various features, including:

Elevated Security Measures

You can only scan the QR code on the PAN card through authorized software, which keeps you'd data safe and reduces the chances of using the information for an illegitimate purpose. Not only this, but the unique QR code also prevents the creation of fake or duplicate PAN Cards.

Encrypted Data

All the data of PAN Holder, including PAN number, name, date of birth, Aadhaar card number, and more, is encrypted. This helps to minimize the fraudulent activities.

Instant e-PAN Generation

PAN 2.0 features Aadhaar authentication, enabling the instant generation of the e-PAN. This reduces the lengthy processing time for e-PAN generation to a faster medium.

Globally Accessible

OCI cardholders and NRIs can now get their e-PA online anywhere in the world. This makes the compliance and financial processes easier, regardless of the location.

What is the Difference Between PAN Card and PAN Card 2.0?

The traditional PAN card is a physical document issued by the Income Tax Department of India to businesses and entities, ensuring compliance with Indian income tax laws. PAN 2.0 is the upgraded version of the traditional PAN card, which is also governed by the Income Tax Department of India. Below is a detailed comparison of the two.

How To Apply for PAN 2.0 for NRIs?

If you have a current PAN card, you're automatically eligible for PAN 2.0. However, if not, you must first fulfill the standard requirements of having a PAN card.

Check Which Government Website Your PAN is Issued From

Before proceeding, you first need to check through which website your current PAN card was issued, whether it was through NSDL (National Securities Depository Limited) or UTIITSL (UTI Infrastructure Technology and Services Limited).

To find this out, look at the back of your PAN card. Now that you know who the issuer is, follow the instructions below.

PAN Card 2.0 Apply Online with NSDL

If your issuer is NSDL, follow these simple steps below:

Step 1: Go to the official website of NSDL

Once you are at the NSDL website, go to the NSDL PAN request page.

Step 2: Enter the requested information and tick the checkboxes to confirm that the information you have entered is correct.

Step 3: Submit all the details

Step 4: Choose the OTP (one-time password) delivery method, either via SMS or email, to validate the details you have entered.

Step 5: Agree to the terms and conditions and confirm your payment.

Step 6: Complete the payment procedure using debit/credit or net banking. Once you confirm the payment, you will get your e-PAN on your registered email ID within 30 minutes. Once you have the mail, you can proceed with the PAN Card 2.0 download.

PAN Card 2.0 Apply Online with UTIITSL

If your issuer is UTIITSL, follow the steps given below:

Step 1: Visit the UTIITSL e-PAN portal.

Step 2: Enter all the asked details, including your PAN number, date of birth, and captcha code.

Step 3: Confirm your email address and update it if it has already been registered.

Step 4: As an NRI, if you are applying for your e-PAN within 30 days of the issuance of your PAN card, you are not required to pay the fees. However, if you are applying outside of this timeframe, you will be required to cover the costs.

Step 5: Upon the completion of the fees, you will get the e-PAN at your email address once the income tax authorities have processed it. Once you get the mail, you can finish your PAN Card 2.0 download.

Fees of NRI PAN Card Application

The application fees for the NRI PAN card are approximately Rs 994, provided the communication address is outside India for the delivery of the physical card.

Benefits of PAN Card 2.0

NRI PAN Card 2.0 comes with several benefits, including:

Security: New PAN Card 2.0 features an integrated QR code, providing an additional layer of protection. This QR code contains the encrypted information of the holder, including name, date of birth, and PAN number. Since this information can only be accessed through valid and authorized software, the risk of a data breach decreases. Additionally, as the QR code is unique for every individual, it also minimizes the risk of fake PAN cards.

Streamline Verification: As the QR code can be instantly scanned, it provides quick identification verification of the cardholder. This benefits both parties: the organization conducting the checks and the cardholder.

Real-Time Information: New PAN Card 2.0 is all about cutting-edge technology, and hence, with its use, the cardholder's details are synchronized with the latest requirements and formatting of the Income Tax Department of India. And this does not stop here. Any outdated or inconsistent information will be automatically corrected and updated during the replacement process.

No More Frauds: Without the key decryption tool, it is impossible to access the encrypted information. This eradicates the cases of replicating information or counterfeiting.

100% Digital: One of the major objectives of PAN Card 2.0 is to digitalize the process of updating, reissuing, or applying for a PAN card. This helps to reduce the paperwork and makes the application process faster.

Get NRI PAN Card 2.0 with Savetaxs

PAN Card 2.0 initiative signifies the steps the Indian government is taking to simplify and secure India's income tax ecosystem, featuring advanced features such as a paperless system, enhanced security, and more. PAN Card 2.0 is in the game merely to elevate the experience of the taxpayers. The Digital India Vision is now spreading abroad as NRIs can easily access the PAN card 2.0 with Savetaxs.

Savetax has been helping NRIs obtain their traditional PAN cards for more than a decade now, and the satisfied clientele base of Savetax speaks for itself. Our experts bring over 30 years of experience; hence, with Savetax, you are in for the best guidance and assistance from the industry's top experts.