After PAN, TAN comes DIN to ease taxpayers' pains
29 Nov 2010
Tax payers will now be required to quote a unique document identification number (DIN) on every communication with the income tax (I-T) department, according to a new government notification.
The number, which will be mandatory in respect of every notice order, letter or any-tax related correspondence as also the filing of returns inclusive of returns in respect of 2010-11, is on the lines of the permanent account number (PAN) and tax deduction account number (TAN).
According to a senior income tax official, DIN would be generated by the I-T department and the Aayakar Sampark Kendras would distribute the numbers to assessees from this month.
He added that income tax officials would also be allotted the numbers to streamline the tax filing process. He said taxpayers as well as tax officials would need to quote the number on every communication without which no communication would be considered as received.
According to him, DIN would prove useful in ensuring error-free filing of returns and claiming of refunds. A new Section 282 B was introduced for the DIN allotment in the Finance Act, 2010 and the implementation of the new section was made effective from 1 October.
Under the provisions of the section, all IT authorities will allot a computer-generated DIN in respect of every notice, order, letter or correspondence issued by them to any other income tax authority, assessee, or any other person which shall be quoted thereon. Documents without the DIN would be treated as invalid and deemed never to have been issued. The provisions also apply to the documents received by an I-T authority, or on behalf of such authority.
Each incoming and outgoing communication will bear the DIN so that the communication's existence cannot be denied. However, the I-T department would need to put the requisite infrastructure and facilities in place before its get down to actual implementation of the order.
The objective behind the exercise is to bring greater transparency in tax administration as the whole exercise involves a number of documents and pro formas. Taxpayers deal with the department to avail a variety of financial services which the DIN will help to facilitate.