PAN 2.0 is going digital: Will you still need a physical PAN card as ID proof and KYC document?
, a digital version of the Permanent Account Number (PAN) card issued by the Income Tax Department of India. Here are the key points:
- PAN 2.0 is digital: The new system focuses on a paperless process with a digital PAN card. However, existing PAN card holders can still get a physical card in the new format if they choose.
- Physical cards optional: Taxpayers with existing PAN cards (white color or smart card design) are not required to apply for a new PAN under PAN 2.0. They can keep using their current physical card.
- Digital PAN as ID proof: Both PAN 1.0 (existing) and PAN 2.0 (digital) can be used as valid ID proofs for various purposes.
- Physical card may not be required: Experts believe that in most cases, a digital PAN will suffice for ID verification, and a physical card may not be necessary.
- Convenience of digital PAN: The digital nature of PAN 2.0 offers convenience as it eliminates the need to carry a physical card.
In essence, while PAN 2.0 is a digital shift, existing PAN card holders have options. They can continue using their current physical card or obtain a new physical card in the PAN 2.0 format, but a digital PAN itself is likely to be sufficient for most identification purposes.