1. What is PAN 2.0?

PAN 2.0, approved by the Cabinet Committee on Economic Affairs (CCEA) on November 25, 2024, is a revolutionary e-Governance initiative aimed at modernizing the existing PAN/TAN system. With a budget of ₹1,435 crore, the government intends to enhance taxpayer convenience, streamline business processes, and improve the digital experience for individuals and businesses.

This upgrade integrates PAN and TAN services into a unified system, ensuring faster, more secure, and eco-friendly processes. PAN 2.0 will introduce a QR code feature, making PAN cards more technologically advanced and aligned with modern digital infrastructure.

2. What are the benefits of PAN 2.0?

The PAN 2.0 initiative offers several benefits, including:

• Faster Service Delivery: Improved efficiency and ease of access for taxpayers.
• Data Consistency: PAN as the single source of truth across government digital systems.
• Eco-Friendly Processes: Reduced paperwork and optimized costs.
• Enhanced Security: Strengthened infrastructure for safer and faster digital transactions.

3. Are existing PAN cards still valid?

Yes, your current PAN card remains valid. Union Minister Ashwini Vaishnaw confirmed that taxpayers are not required to apply for a new PAN number. However, you can upgrade your existing PAN card to include the new QR code features at no additional cost.

4. Why do NRIs need a PAN?

Non-Resident Indians (NRIs) must obtain a PAN if they:

• Need to file income tax returns in India.
• Engage in economic or financial transactions where quoting PAN is mandatory.

5. How can NRIs apply for a PAN under PAN 2.0?

NRIs can apply for a PAN through:

• Online Application: Via the websites of UTIITSL or Protean (formerly NSDL eGov).
• Offline Application: By submitting Form 49A along with the required documents and fees at PAN application centers.

6. What documents do NRIs need for PAN application?

When applying for a PAN, NRIs must provide:

Proof of Identity (POI):

A copy of their passport.

Proof of Address (POA):  Choose from:

A copy of the passport.

A copy of a bank account statement from their country of residence.

A copy of an NRE bank account statement showing at least two transactions in the last six months, attested by the Indian Embassy/Consulate, high commission, or a bank manager.

NRIs can also provide a foreign address as their residential or office address if they lack an Indian address.

7. What are the fees for PAN application for NRIs?

The application fees for a PAN card are ₹994 if the communication address is outside India. This includes both processing and dispatch charges.

8. How can NRIs correct errors in their PAN card?

NRIs can correct errors in their PAN details like name, address, or signature by filing a Request for New PAN Card or/and Changes or Correction in PAN Data through:

• Offline mode: Submitting the form at UTIITSL or Protean centers.
• Online mode: Through the websites of UTIITSL or Protean.

9. Can NRIs hold multiple PAN cards?

No, holding multiple PAN cards is illegal under the Income-tax Act, 1961, and can attract a penalty of ₹10,000 under Section 272B. If you possess multiple PANs, surrender the additional cards immediately.

FAQs About PAN 2.0 for NRIs

1. Is it mandatory for NRIs to upgrade to the new PAN 2.0 card?

No, upgrading is optional. Existing PAN cards remain valid, but NRIs can opt for the upgraded card with QR code features for better functionality.

2. Can I apply for a PAN card with a foreign address?

Yes, NRIs can provide a foreign address as their residential or office address if they do not have an Indian address.

3. How long does it take to get a PAN card?

It usually takes 15-20 business days for the PAN card to be processed and dispatched. NRIs should ensure all documents are in order to avoid delays.

4. Can NRIs use PAN 2.0 for digital transactions abroad?

Yes, the new QR code-enabled PAN card enhances usability for global digital systems linked with Indian financial and economic transactions.

5. What happens if I lose my PAN card?

In case of loss, you can apply for a duplicate PAN card online or offline by providing your PAN details and proof of identity.

For more expert insights on PAN for NRIs and NRI tax planning compliance, visit dineshaarjav.com. Explore our blogs for the latest updates, financial tips, and tax planning strategies tailored for NRIs.