Union Cabinet-led by Prime Minister Narendra Modi approved a Rs 1,435 crore project on Monday to upgrade the current system of issuing PAN cards. The PAN 2.0 project, set to roll out next year, aims to introduce a QR code-based system to enhance security, prevent duplication, and make it easier to identify fake PAN cards. This initiative will ensure that taxpayers cannot possess multiple PAN cards, significantly reducing the risk of fraud.
The Income Tax Department clarified that individuals with existing PAN cards are not required to apply for a new one unless updates or modifications are needed. Under PAN 2.0, users requiring updates can apply for a new card equipped with advanced security features. According to experts, the upgraded PAN card will include a QR code containing encrypted personal information, which can only be accessed by authorised personnel using specialised software.
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This QR code-based system will enable financial institutions to instantly verify personal details, making it difficult to tamper with or duplicate PAN cards. Fraudsters typically manipulate names or photos on PAN cards while retaining the same PAN number. With PAN 2.0, such frauds will become more challenging, providing better protection against misuse of personal information.
The new system will also streamline verification processes and protect common citizens from potential fraud, marking a significant step forward in securing financial data and identity.