After PAN, taxpayers get another number from the IT Department.
Income tax payers will now need a new number to file returns and communicate with the Income Tax Department. The unique Document Identification Number (DIN) is to be quoted on every income tax-related communication, including returns to be filed next year - financial year 2010-11. According to the Central Board of Direct Taxes (CBDT)'s new guidelines, DIN will be mandatory 'in respect of every notice, order, letter or any correspondence' with the department, by taxpayers.
Generated by the IT Department, DIN will be useful for error-free filing of tax returns, claiming refunds and other communication with the department by the assesses. The public will not be inconvenienced, as the numbers will be generated and allotted by the department itself, through the Aykar Sampark Kendras. The number has to be produced for every interaction with the department.
Taxpayers and tax collectors are currently required to quote Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) among others when returns are filed with the department. DIN aims to bring more transparency in tax administration. Apart from regular filing of taxes, a taxpayer deals with the department for various other financial services, which DIN is expected to ease. IT officials will also be allotted numbers to streamline the tax filing process.
A new Section 282B, inserted in the Finance Act 2010 for the allotment of DIN, came into effect from October 1, 2010. Under the Section, every IT official should allot a computer-generated DIN in respect of every notice, order, letter or correspondence issued by him to any other income tax authority, assessee, or any other person and the number should be quoted on it. It further says, 'A document, which does not bear DIN should be treated as invalid and be deemed never to have been issued. The same applies for the documents received by an IT authority, or on behalf of such authority'.
DIN will pose a challenge to tax administrators as it involves a number of documents and proformas.
