Govt. to Launch PAN 2.0 Soon: Enhanced Security & Unified Digital Identity for 78 Crore Indians

Union Minister Ashwini Vaishnaw announced on Monday that the government will soon roll out PAN 2.0, an upgraded version of the existing Permanent Account Number (PAN) system, which serves as a unique taxpayer identification number. The new system is set to bolster security and streamline digital services across the country, addressing concerns over misuse of PAN and the challenges posed by its widespread use.

Speaking to the media, Vaishnaw explained that the decision to launch PAN 2.0 comes amid growing concerns about the misuse of PAN cards, particularly in cases where individuals share photocopies of their PAN for various services. The upgrade, which will be free of cost for the 78 crore PAN card holders in India, is part of the government’s broader initiative to enhance the security of personal identification systems in the digital era.

“The entire digital backbone of the system will be upgraded. There was a demand from the industry and commercial world for a single number for all activities, rather than requiring several different numbers,” Vaishnaw said. “We will explore the possibility of using this as a common identifier across different platforms. The current software is outdated, and we need to bring in new technologies,” he added.

Key Features of PAN 2.0
The PAN 2.0 project is a significant e-Governance initiative aimed at modernizing taxpayer registration services. It will incorporate a variety of features, including:
* System Upgrade: A comprehensive overhaul of the existing infrastructure, leveraging cutting-edge technology to improve operational efficiency.
* Common Business Identifier: The upgraded PAN will serve as a universal identifier, making it easier for businesses and individuals to engage with multiple government agencies and services.
* Unified Portal: The new platform will consolidate all PAN-related services into a single portal, providing a seamless user experience.
* Cybersecurity Measures: Enhanced security protocols will be put in place to protect user data from potential cyber threats, ensuring a safer digital environment.
The new system will consolidate both core and non-core PAN activities, including validation services, to provide a more unified and efficient experience for taxpayers.

Financial Implications and Digital Vision

The project is estimated to cost around Rs 1,435 crore and is aligned with the government’s Digital India vision. Vaishnaw emphasized that PAN 2.0 will help create a unified digital identity across various government platforms, allowing smoother integration and reducing administrative hurdles.

The PAN system, which has been in use since 1972 under Section 139A of the Income Tax Act, currently covers 98% of the Indian population, with a total of 78 crore PAN cards issued. The launch of PAN 2.0 is expected to further modernize the system, making it more robust, secure, and adaptable to future technological advancements.​