PAN 2.0: The Modi government has approved a new PAN 2.0 project, and taxpayers' first issue is whether they should apply for the upgraded PAN Card through PAN 2.0. Those who need to change or update their information, such as their name or date of birth, will be able to apply for a new PAN at no cost. It's crucial to note that the Income Tax Department has published a statement indicating that current PAN cardholders are not required to obtain a new PAN under the PAN 2.0 scheme.
Should you replace your old PAN with a new PAN card under PAN 2.0?
Experts believe that people who have outdated white PAN cards or PAN cards without QR codes should upgrade to the current version with a QR code. Experts believe that the redesigned PAN card design with PAN 2.0 will lessen fraud risks by including a QR code and allowing for speedy verification.
What are the advantages of PAN Cards with QR Codes?
Vikram Babbar, Partner, EY Forensic & Integrity Services - Financial Services, told ET that upgrading to the new PAN card design with a QR code is a proactive measure for customers to protect their identity and financial information. It reduces the risk of falling victim to fraudulent activity."
Ankit Ratan, CEO and Co-founder at Signzy, an online identity verification and client onboarding startup, told ET that the entire PAN registration process has been automated as part of the PAN 2.0 program. This enables the provision of seamless PAN authentication and validation services to a variety of organisations, including financial institutions, banks, and governmental agencies at both the central and state levels."
According to Babbar, the QR code connection with the PAN Card provides various benefits to taxpayers: Strengthened security features: The use of QR code technology in the new PAN card considerably decreases the risk of duplication or manipulation. The encrypted personal information included within the QR code is only available to approved persons using specialized software. This security precaution prohibits fraudsters from changing names and photos while keeping the original PAN number. Financial organizations can use QR codes to authenticate printed material. Efficient authentication process: The redesigned PAN card's QR code scanning feature streamlines identity verification. The rapid verification method provides security against identity theft and impersonation. This functionality is especially useful during financial transactions, since it reduces errors and fraudulent activity.
Current Information Maintenance: The updated PAN card guarantees that user information complies with the most recent formatting specifications set out by the Income Tax Department. Regulatory Adherence: By complying with the government's new identification protocols, users of the redesigned PAN card promote a more secure banking system. Fraud Prevention: When fraudsters try to replicate PAN cards, the technological difficulty of precisely replicating QR codes poses a serious obstacle.
According to Ratan from Signzy, the new PAN card design that includes a QR code is an important step forward in preventing fraud and adhering to regulations. Through the storage of encrypted cardholder data, QR code technology offers improved security and verification capabilities. The advanced encryption effectively prevents PAN card replication because authorized software is needed for QR code verification, which verifies the card's legitimacy and rightful owner, he adds.
Furthermore, as per Sandeep Jhunjhunwala at Nangia Andersen LLP, “Printed PAN cards now have a QR code. As a result, while upgrading to a new financial transactions is possible at any moment, it is not guaranteed that the PAN 2.0 initiative will always safeguard taxpayers from potential fraud. The new system is planned to incorporate features like mandatory Aadhaar linkage, real-time validation, and powerful data analytics, all of which could aid in detecting and deterring fraud. However, it is unknown how successfully these measures will handle the risk of fraud. As PAN 2.0 evolves, stakeholders should keep an eye out for further updates from the authorities to learn how these features will be implemented and whether further safeguards will be included to expressly combat the threat of financial fraud."
