PAN 2.0: Will existing PAN card remain valid or do you need to upgrade?

The Indian government has announced the PAN 2.0 Project, a major initiative aimed at modernising the taxpayer registration system under the Income Tax Department.
The project was approved by the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, and was announced on Monday, 25 November 2024. With an investment of Rs 1,435 crore, the government aims to introduce advanced Digital PAN/TAN services as part of this e-governance reform.
PAN 2.0 is a modernised version of the existing Permanent Account Number (PAN) system. It includes enhanced features, such as a QR code for better digital security and ease of access. The initiative is designed to create a seamless digital tax ecosystem, making processes like Know Your Customer (KYC) verification simpler and improving data accuracy for taxpayers and businesses.
For those wondering if their current PAN cards will still be valid, the answer is yes. According to experts, the existing PAN cards will remain valid, and there is no compulsion to upgrade to the new version.
Sudhir Kaushik, Co-founder and CEO of Taxspanner, confirmed this and said”Existing PAN cards issued to taxpayers continue to remain valid, with no change in their status. However, taxpayers now have the option to upgrade their current PAN cards to a new version that includes a QR code for enhanced convenience and security.”
The upgrade will be provided free of cost, ensuring there is no financial burden on taxpayers who choose to access these new features.
The new PAN card under PAN 2.0 will include a QR code that can be scanned for digital verification, improving the speed and accuracy of processes like identity authentication.
Anand Kumar Bajaj, Founder, MD, and CEO of PayNearby, highlighted the benefits and said, “The upgraded PAN with QR code integration will simplify KYC processes, improve data accuracy, and enhance service delivery for users. Any individual applying for a new PAN card will automatically receive these features. Existing PAN cardholders can opt for the upgrade at no cost.”
For businesses, PAN 2.0 is set to play a larger role as a universal identifier. Currently, companies in India are required to manage multiple registration numbers such as PAN, TAN, GSTIN, CIN, and EPFO numbers. Under the new system, PAN could become a single common identifier, streamlining compliance and reducing administrative burdens.
CA Anand Bathiya, President of the Bombay Chartered Accountants’ Society (BCAS), explained, “The key aspect of the PAN 2.0 project is the upgraded technology framework that will enable PAN to be used as a universal identifier for businesses. This combined identifier powered by technology will add to the ease of running a business in India.”
For individuals or businesses applying for a new PAN card, the advanced features, including the QR code, will be included by default. This ensures that new entrants to the tax system automatically benefit from the latest technology.