The Central Government has officially awarded the much-anticipated PAN 2.0 project of the Income Tax Department to LTI Mindtree Ltd for a contract value of ₹792 crore.
According to people familiar with the development, the project is scheduled to go live within 18 months, marking a major overhaul in how Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) related services are delivered to Indian taxpayers.
What is PAN 2.0?
PAN 2.0 is envisioned as a unified, digital-first platform that will consolidate and modernise all services related to PAN and TAN.
This advanced system will cover:
- Allotment of new PANs and TANs
- Updates and corrections in PAN/TAN data
- Aadhaar–PAN linking
- Re-issuance of PAN cards
- Online PAN validation
The platform will also integrate grievance redressal mechanisms to make service delivery more transparent, efficient, and user-friendly.
Current System vs. PAN 2.0
At present, PAN-related services are spread across three different portals:
- e-Filing Portal (Income Tax Department)
- UTI Infrastructure Technology and Services Limited (UTIITSL) Portal
- Protean e-Gov Technologies Limited Portal
PAN 2.0 will merge all these services into one consolidated platform, eliminating duplication and confusion for taxpayers.
Scale of the Project
The PAN 2.0 project will handle a massive database:
- Over 81.24 crore PANs
- More than 73 lakh TANs
PAN is a 10-digit alphanumeric identifier issued to Indian taxpayers, while TAN is assigned to entities responsible for deducting or collecting tax at source.
Government Approval and Funding
The Cabinet Committee on Economic Affairs (CCEA) had approved the ₹1,435 crore project on November 25, 2024.
LTI Mindtree will serve as the Managed Service Provider (MSP) for the design, development, implementation, operations, and maintenance of the new platform.
Key Features of PAN 2.0
- Entirely digital process for allotment, updates, and corrections
- Free of charge for taxpayers
- Electronic PAN (e-PAN) delivered to registered email IDs
- Faster service delivery with improved accuracy and security
- Enhanced data integration across departments for fraud prevention
Impact on Existing PAN Holders
Current PAN holders do not need to reapply under the upgraded system. All existing PAN and TAN data will be migrated seamlessly to the new platform.
Why PAN 2.0 Matters?
The new system will not only simplify taxpayer interactions with the Income Tax Department but also enhance compliance, reduce errors, and speed up processing times.
With its integrated grievance redressal system, taxpayers can expect quicker resolutions to issues without having to navigate multiple platforms.
LTI Mindtree’s Role
As the Managed Service Provider, LTI Mindtree will be responsible for:
- Designing the new platform
- Developing and testing the system
- Deploying the solution nationwide
- Maintaining and upgrading the system post-launch
The company’s experience in digital transformation projects is expected to play a crucial role in the successful delivery of PAN 2.0.
Market Response
Following the announcement, shares of LTI Mindtree were trading at ₹5,090.50 on the BSE, up 1.46% on Monday. This reflects positive market sentiment and investor confidence in the company’s ability to deliver such a large-scale government project.