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Sunday, June 21, 2009

PAN Card for Vehicle Registration

Update: Considering the difficulties of implementing the policy, the Andhra Pradesh government exempted two wheelers, three wheelers and Tractors from this rule.


Buying a new vehicle is going to be a complex affair from now on. The Andhra Pradesh Regional Transport Authority mandated that any new vehicle registration should accompany with the PAN card details of the citizens. So, before buying a new Car, Motor Cycle or any automobile; First Apply for a PAN card.

PAN (Permanent Account Number) is a national identification number for the Income Tax purpose in India. PAN cards are issued by the Income Tax Department of Government of India. In 2006, the Union Government has suggested the Regional Transport Authorities to capture the PAN numbers of the applicants, as part of the vehicle registration process. RTAs mandated that the vehicle C-Book should carry the PAN number of the owner.

Now, the Government made it mandatory to produce PAN card details for the purpose of registration. It is already in implementation at various RTO offices in the state of Andhra Pradesh.

While the new rule seems to be good to curb any malpractices in funding for the vehicles, it sure is a burden on people who work in the unorganized sector. As the rule is imposed for all registrations, the buyers of small two wheelers, mopeds; most of whom are students and small wage earners – are severely affected. It is rare that these people carry a PAN card.

Further, the RTAs are coming up with a new rule that makes it mandatory for the buyer to be present at the RTA office at the time of registration. Till now, the vehicle dealers or Agents used to carry out the registration of vehicles at the RTAs. As per the new rule, the owner should attend the registration process and sign in the Digital Pad.

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