CBDT’s PAN 2.0 Project Awarded To LTIMindtree, Set To Go Live In 18 Months

In a significant step towards improving the Income Tax infrastructure, the Central Board of Direct Taxes has awarded the PAN 2.0 project to LTIMindtree Ltd., according to Finance Ministry sources.

The project, aimed at modernising the Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) systems, is expected to go live within the next 18 months. The PAN 2.0 project was approved by the Cabinet Committee on Economic Affairs (CCEA) in November 2024. 

The PAN 2.0 initiative aims to streamline and digitise the entire lifecycle of PAN and TAN, offering a unified platform for services such as allotment, updates, Aadhaar-PAN linking, reissuance, online validation and grievance redressal. By using advanced technologies, the project is set to improve service delivery, reduce processing times and make the user experience better for millions of taxpayers.

It forms a major part of the government’s larger Digital India vision. Once implemented, PAN 2.0 will serve as a single source of truth, ensuring consistency of taxpayer data across all participating government systems. It will also allow PAN to be used as a common identifier across digital platforms of various government departments, streamlining data flow and improving administrative efficiency.

According to reports, LTIMindtree will serve as the Managed Service Provider (MSP) responsible for the design, development, implementation, operation and maintenance of the PAN 2.0 system.

Currently, PAN-related services are spread across three platforms: the e-Filing Portal, UTIITSL Portal and Protean e-Gov Portal. The new initiative seeks to unify these under a single and integrated system. The project will include a database of over 81.24 crore PANs and more than 73 lakh Tax Deduction and Collection Account Numbers (TANs).

The revamped system is even expected to promote eco-friendly practices, cut operational costs and strengthen data security through a more agile and optimised infrastructure.

PAN, introduced under Section 139A of the Income Tax Act, 1961, has played an important role in India’s tax infrastructure since its rollout nationwide in 1975. It became mandatory to quote the 10-digit alphanumeric PAN on all tax-related financial transactions from 2005. More recently, from June 2023, linking PAN with Aadhaar has been made compulsory.

Shares of LTIMindtree Ltd. closed 1.44% higher at Rs 5,090 apiece on Monday, compared to a 0.64% rise in the benchmark Nifty50 at 24,722.75.