The purview of the section was expanded in the budget to include credit card holders and club members. The section entails mandatory filing of tax returns for persons possessing a vehicle, telephone, flat and those who have travelled abroad or sponsored a foreign trip.

The department has identified around 30.53 lakh persons who satisfy the conditions under section 139(1). These include 16.27 lakh telephone owners, three lakh house property owners, 7.26 lakh vehicle owners and four lakh persons who have travelled abroad.

So far, information relating to 19.50 lakh persons has been sent to concerned commissioners of income tax. It is estimated that the additional two criteria would cover a few thousand persons.

According tosources in the revenue department, information in respect of the other two new criteria -- credit cards holders and members of clubs -- is in the process of being assembled.

Sources acknowledged that there are some difficulties while collating data about persons holding credit cards and club memberships. "Most of the clubs and credit card companies are not furnishing the desired information on the ground that under the law they are not liable to furnish information about all their clients and members," they added.

The information regarding the other four criteria has been processed after eliminating the common names and addresses appearing under two or more heads. The information has also been segregated according to the territorial jurisdiction of the respective additional/deputy commissioners of income tax.

However, the information relating to central and state government departments, companies and public sector undertakings has been excluded.

The department has also sent letters to almost all thesepersons who are required to file returns under section 139 (1). As the provision is mandatory, any failure on the part of the persons would call for penal action.

The income-tax department has intensified its drive to widen the tax base and drawn up an action plan for fiscal 1998-99 to meet the target set for computerisation. "Computerisation will not only help us in tapping new assessees but also keep a track of unreported transactions and a watch on tax evaders," said chief commissioner of income tax (II), KVM Pai.

He added that the Central Board of Direct Taxes (CBDT) is in the process of inviting tenders for networking the regional computer centres with the main system at Delhi.

The action plan of the department entails completion of the permanent account number (PAN) allotment, putting arrear demands on computer and processing of returns and assessment through Assessment Information System.

The allotment of PAN would assist the department in using the integrated computerised system developed bythe DIT (systems). Until July 1998, around 8.9 lakh PANs were allotted in Mumbai while data for around 10.17 lakh has been fed into the system.

The gap between the number of PAN-alloted and the PAN applications received by the department is a result of defective 49A forms. The department is also facing the problem of assigning correct jurisdiction of an assessee in the computer.

For instance, of the 8.9 lakh PANs allotted, in 4.95 lakh cases the assessment jurisdiction is available in the department's database but for the remaining around 3.96 lakh PANs, the assessment jurisdiction is not known.