In a significant move toward digital tax infrastructure reform, the Income Tax Department has entrusted LTIMindtree with the development and execution of PAN 2.0, a next-generation Permanent Account Number system, according to official sources in the Central Board of Direct Taxes (CBDT).
The PAN 2.0 initiative aims to revamp the current PAN ecosystem, making it more agile, secure, and interoperable with other financial and regulatory systems. The new system is expected to bring real-time data validation, better fraud detection, and smoother taxpayer verification through API-based integrations with Aadhaar, banking systems, and digital KYC services.
What’s New in PAN 2.0?
Unlike the current structure, PAN 2.0 will be built on microservices architecture and is expected to enable faster issuance and updates to PAN cards. This upgrade also supports India’s Digital Public Infrastructure strategy by ensuring tighter integration across government platforms.
With LTIMindtree winning the multi-year contract, the company will take charge of building the back-end infrastructure, user interfaces, and AI-based modules to automate PAN-related workflows and monitoring.
CBDT’s Focus on Tech Modernization
The project aligns with the CBDT’s broader push for technological transformation in tax compliance and governance. PAN 2.0 is projected to reduce the operational burden on the Income Tax Department while improving user experience for citizens, NRIs, and businesses alike.
Sources indicate that implementation will begin later in 2025, with pilot testing planned across select regions before nationwide rollout in 2026.
India Advocacy Insight:
PAN 2.0 reflects India’s growing emphasis on tech-enabled transparency and efficiency in financial systems. Stakeholders in compliance, banking, and fintech should prepare for changes in PAN-linked workflows.
Stay tuned with India Advocacy for future updates on PAN 2.0 and tax digitization reforms.
