PAN 2.0's QR code can save you from fraud: Here's why you should apply even though optional The new design under PAN 2.0 comes with a QR code that can help taxpayers minimise the risk of fraud using their PAN number. Hence, even if the existing PAN cards are valid, then also taxpayers should apply for new PAN
The income tax department has clarified that the existing PAN card holders are not compulsorily required to apply for a new PAN under the PAN 2.0 project. Taxpayers can apply for a new PAN under the PAN 2.0 project, free of cost, if there are any corrections to be made or updation required of their existing PAN details such as name, date of birth etc. However, taxpayers having PAN with the old design i.e., white colour PAN cards or smart card design of PAN without a QR code should upgrade to the new PAN design with a QR code. According to experts, the new upgraded PAN card design under PAN 2.0 minimises the fraud risk due to the QR code integrated in it and also allows instant verification.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}
How QR code on PAN will help in minimising frauds
Vikram Babbar, Partner, EY Forensic & Integrity Services - Financial Services says, "Upgrading to the new PAN card design with a QR code is a proactive step for users to safeguard their identity and financial information. It helps reduce the likelihood of falling prey to fraudulent activities."PAN 2.0 Project: Do you have additional PAN? Steps to surrender to avoid Rs 10,000
Concurring with the view, Ankit Ratan, CEO & Co-founder, Signzy - an online identity verification and customer onboarding company says, "Under the PAN 2.0 initiative, the entire process of PAN application has been digitized. This enables provision of seamless PAN authentication and validation services to various organisations, including financial institutions, banks, and governmental bodies at both central and state levels."
How QR code in PAN 2.0 project will help taxpayers
Babbar from EY Forensic & Integrity Services - Financial Services spells out how QR code will help the taxpayers:
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Enhanced security: Because the new PAN card comes with a QR code it is more difficult to duplicate or tamper with. The QR code contains encrypted personal data, which can only be read by authorized personnel using specific software. This reduces the risk of personal information being misused by fraudsters. Usually, fraudsters change the name and photo on the PAN card while keeping the PAN number the same. The QR code on PAN helps financial institutions to verify the information printed on the PAN.
PAN 2.0 comes with the QR code: What happens to the current PAN card?
Swift verification: The QR code on the new PAN card allows for quick and simple identity verification. Since the verification takes place almost instantaneously when the QR code is scanned, the updated PAN card acts as a safeguard against impersonation and identity theft. This feature is also useful during financial transactions as it minimizes the chances of errors and fraudulent claims.
Up-to-date information: By upgrading to the new PAN card, users can be assured that their details are in line with the latest format set by the Income Tax Department.
Compliance with latest government regulations: By transitioning to the new PAN card design, users are complying with the most updated identification standards set by the government, contributing to a more secure financial environment.
Prevention of misuse: It is difficult even for fraudsters to replicate a QR code accurately which makes it less likely for the PAN to be duplicated by them.
Ratan from Signzy says, "The introduction of an upgraded PAN design featuring a QR code marks a significant step in combating fraud and enhancing compliance. QR codes add an essential layer of security and authenticity because it contains 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. This move not only strengthens trust in the system but also underscores the government's commitment to innovation and enhanced security in critical identification processes."
Mohit Chobey, Director, Digital, Trust and Transformation, Forvis Mazars in India - a consulting firm says, "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. Upgrading to PAN 2.0 aligns with modernised systems, offering robust fraud prevention while retaining the existing PAN number."
However, Sandeep Jhunjhunwala, Partner, Nangia Andersen LLP has a different opinion. He says, "Printed PAN cards carry QR code on them, now as well. Hence, while an upgrade to a new PAN card could be done anytime, it may not necessarily mean that under PAN 2.0 project, this would always protect the taxpayer against any potential fraud. The new system is expected to include features such as mandatory Aadhaar linkage, real-time validation and advanced data analytics, all of which could potentially help in identifying and preventing frauds. However, it remains unclear now as to how effectively these features would address the potential of fraud. As PAN 2.0 evolves, stakeholders could watch out for further updates from the authorities to understand how these features would be implemented and whether additional measures would be introduced to specifically tackle the menace of financial frauds."
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This story originally appeared on: India Times - Author:Faqs of Insurances
