Getting that all-important PAN card

When shopkeeper Rajiv Shah decided to take his family on a "phoren" holiday, little did he realise that he would have to quote his permanent account number (PAN) if he paid over Rs 25,000 in cash to his travel agency.

This 10-digit alpha-numeric number is issued on a card by an income tax assessing officer.

It must be compulsorily quoted on income tax returns, on transactions like the sale or purchase of immovable property or vehicles, even when applying for a telephone line, making a time deposit of over Rs 50,000 or a cash deposit of Rs 50,000 and above in a bank.

If Shah had decided to apply for a PAN card earlier in the year, he would have had to do the rounds of the income-tax office.

Moreover, the process could have taken anywhere from several months to even a couple of years - pending applications still abound as do cases where applicants have received the PAN number but not the card.

Since July, however, the tax department has outsourced this to UTI Investor Services Ltd (UTIISL), which has opened nearly 600 IT PAN Service Centres in around 492 of the 501 cities specified by the department.

This includes around 80 offices of Bajaj Capital Ltd, with which UTIISL has a tie-up. Cities like Mumbai have almost 20 PAN service centres.

Shah can locate a centre by either checking with his local income tax office, any Unit Trust of India or UTIISL office or by simply logging on to http://www.utiisl.co.in.

So how long does it take to get a card? Although the tax department aims to issue PAN cards within 15 working days initially and 10 working days eventually, some issuing centres say that in practice, it takes at least 20 days to over a month.

The delay is mainly at the tax department, which issues the number "" UTIISL sends the applicants' data to the income tax department's national computer centre in Delhi, which, in turn, transmits it to the concerned regional computer centre (Mumbai, Delhi, Calcutta, Chennai and Hyderabad), which issues the PAN. UTIISL then prints and dispatches the cards.

Tax offices like the one in Mumbai, in fact, are reportedly delaying the process. (Some service agents claim that this is due to union protests against the outsourcing.)

To apply for a PAN card, Shah needs to fill form 49A, which he can buy for Rs 5 from any IT PAN Service Centre or download from UTIISL's website.

He must submit the form with a processing fee of Rs 60 (plus Rs 5 if it is a downloaded form) - the sum is used to buy a distinctive coupon that must be affixed on the form.

In addition, Shah must submit:

A recent stamp-sized (3.5 cm x 2.5 cm) colour photograph (for individual applicants only)

Proof of identity: This could be a ration card, passport, voter identity card, driving licence, school-leaving or matriculation certificate, college degree, credit card, depository or bank account, water bill or property tax assessment order. It could also be a certificate of identity signed by a MP, MLA, municipal counsellor or gazetted officer.

Proof of address: Again, this could be a ration card, passport, voter identity card, driving licence, electricity or telephone bill, credit card, depository or bank account, property tax assessment order or certificate of identity from a MP, MLA, municipal counsellor or gazetted officer.

The only tedious detail that Shah has to fill is his income tax ward and circle number.

He can obtain this from the nearest income-tax office. PAN service centres guide applicants on where this tax office is located. They also have a list of the accompanying assessing office (AO) type, number, area code and range number, which they help applicants to fill.

Older applicants, who have received a PAN number but not a card, can apply afresh. The procedure is the same except for the fact that the applicant must quote the PAN number on the form.

Also, anyone who has applied for a PAN card before June 30, 2003, but hasn't received either the number or card must apply afresh. Again, the procedure is the same.

Existing PAN cards are still valid but if anyone wants to get the new tamper-proof card, he can do so by going through the same application procedure. Such cardholders must, however, surrender their old card albeit their PAN number will not change.

NOT TOTALLY SIMPLE

Getting a PAN card may have become simpler in some ways, but not entirely.

For instance, it's not possible to track an application's status "" UTIISL was supposed to have a web-based tracking system on its site but this in not yet in place.

Although it has an internal querying module, it's not easy to chase UTIISL officers for the same. Also, there is no provision to collect the card in person.

So Shah must wait till it is hand-delivered at his stated address. And since the onus of issuing the number still rests with the income tax department, it may be a while before it irons out the delays.