How PAN 2.0's QR code can save you from fraud; check why issuing a new PAN card can be useful

PAN 2.0 card: The Centre is introducing PAN 2.0 with the aim of establishing it as a universal identifier for multiple business and tax requirements, similar to the Aadhaar card which serves as the primary proof of identity. The PAN 2.0 number will serve as a universal identifier linked to various key registrations such as PAN, GSTIN, EPFO number, among others, each of which has its own distinct number. Managing multiple numbers can be challenging, thus the need for a universal identifier number if technology allows for it.

PAN 2.0 incorporates several features to enhance its functionality. These include improved data security with a secure PAN data vault, QR code integration for convenient access to information, and centralised PAN/TAN services accessible through a single portal. 

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Usage of QR codes

The introduction of dynamic QR codes in PAN 2.0 ensures that users always have access to the most up-to-date information, thereby improving usability. These enhancements transform the PAN card into a versatile identifier suitable for a range of business and professional applications.

According to experts, the inclusion of a QR code on the new PAN card will enhance security measures against duplication and tampering. The encrypted personal data within the QR code can only be accessed by authorized individuals utilising designated software, thereby mitigating the potential misuse of personal information by fraudsters. 

Typically, fraudsters manipulate the name and photograph on PAN cards while retaining the original PAN number. The QR code on the PAN card enables financial institutions to authenticate the printed information on the card.

The QR code present on the new PAN card might enable fast and efficient identity verification. 

By scanning the QR code, verification can be completed nearly instantaneously, providing a secure defense against impersonation and identity theft. This feature is particularly beneficial during financial transactions as it helps reduce errors and prevent fraudulent claims.

Mohit Chobey, Director, Digital, Trust and Transformation, Forvis Mazars in India, said: "The upgraded PAN card with QR codes introduces advanced security features that significantly reduce the risk of fraud. For individuals with older white-coloured PAN cards upgrading to the new version enhances protection by embedding secure, scannable data within the QR code, making the card more resistant to tampering or duplication. This technology allows for instant and verified authentication by authorities and financial institutions, ensuring the safety of personal and financial information."

Why issuing a new PAN card can be useful

By switching to the updated PAN card, individuals can rest assured that their information adheres to the latest format mandated by the Income Tax Department. By adopting the new PAN card design, users are aligning with the current identification criteria established by the government, thereby promoting a safer financial landscape. The inclusion of a QR code on the new PAN card also adds an additional layer of security, making it challenging for fraudsters to accurately replicate and duplicate the card.

"Upgrading to PAN 2.0 aligns with modernised systems, offering robust fraud prevention while retaining the existing PAN number," added Chobey.

According to Ankit Ratan, CEO and Co-founder of Signzy, the introduction of a new PAN design that includes a QR code is a crucial advancement in the fight against fraud and improvement of compliance measures. 

"QR codes add an essential layer of security and authenticity because it has encrypted details of the cardholders. This makes duplication or forgery of PAN cards exceedingly difficult, as the QR code can only be decoded by specific software, ensuring the card is legitimate and linked to its rightful owner. Additionally, the QR-enabled PAN system creates a secure, centralized data repository that minimizes the risk of breaches while adhering to modern cybersecurity standards," he added. 

How to update your PAN card

The government has announced that existing PAN users do not need to reapply for PAN 2.0 upgrades. All current PAN cards will remain valid with the introduction of PAN 2.0.

The updated PAN card, which includes a QR code, will be sent to the taxpayer's specified email address. A request for a reprint of the PAN card can be submitted after any necessary corrections or changes to the PAN details in the income tax records have been made. Once the details have been updated, the revised PAN card with a QR code will be delivered to the taxpayer's registered email address. The rectification and updating service for PAN details is provided at no cost.

To apply for a reprint of your PAN card, you can visit the websites of Protean (formerly NSDL) or UTIITSL, as these are the only authorized agencies by the Income Tax Department to issue physical reprints of PAN cards.

If you need to update or correct information on your existing PAN card, such as your name or date of birth, you can request a reprint or apply for a new PAN card. The fee for obtaining a physical copy of the new PAN card is Rs 50 for delivery within India, with an additional charge of Rs 15 plus postage fees for delivery outside of India.