Besides being a tax identifier, PAN works well as a physical identity proof. However, the Permanent Account Number (PAN) system is becoming digital under the new PAN 2.0 project. The government spent Rs 1435 crore for a complete overhaul of the existing PAN system.

As per the FAQs released by the Finance Ministry, current PAN cards will remain valid under the upgraded PAN 2.0 system. Existing PAN cardholders are not required to apply for a new card, but they have the option to upgrade their PAN at no additional cost.

PAN card holders can update their addresses for free and receive an e-PAN with a QR code via email. They can also request a physical copy for Rs 50. The initiative, PAN 2.0, aims to digitise the PAN and TAN administration system for better taxpayer services.