PAN 2.0: Common business identifier and robust system for taxpayers

A revamped permanent account number (PAN) 2.0 will have a common business identifier for all their activities as well as a robust system for individual taxpayers. 

 

This offers an opportunity to reflect on how PAN card issuance has evolved over the years. As of now, 780 million PAN cards have been issued, covering approximately 54 per cent of the population. On the other hand,1.39 billion Aadhaar cards have been generated.

 

At the end of March 31, 2024, 746 million PAN cards were issued, while 1.38 billion Aadhaar cards were generated.

 

To address inconsistencies such as the issuance of multiple PANs to a single individual or one PAN being assigned to multiple people, the income tax department mandated the linking of PAN with Aadhaar in July 2017. According to the department’s latest report, 605 million PAN cards have been linked to Aadhaar.

 

As many as 98 per cent of PAN holders are individuals, with male holders still outnumbering female holders. However, the gender gap is steadily narrowing.

 

For instance, 65.37 per cent of PAN card holders were men, while 34.63 per cent were women in 2019. By 2024, the distribution had shifted to 57.55 per cent men and 42.46 per cent women.