Document identification number (DIN) | ID for taxpayers

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Document identification number (DIN) | ID for taxpayers

Calcutta, Nov. 28: The government has made it mandatory for taxpayers as well as collectors to quote a unique document identification number (DIN) on every communication with the income tax (I-T) department.

The number is on the lines of the permanent account number (PAN) and tax deduction account number (TAN).

According to a guideline brought out by the Central Board of Direct Taxes, DIN will be mandatory in respect of every notice, order, letter or any tax-related correspondence, including the filing of returns for 2010-11, with the I-T department by the taxpayers.

“DIN will be generated by the I-T department and the Aayakar Sampark Kendras will distribute the numbers to assessees from this month,” a senior income tax official said.

“Income tax officials will also be allotted the numbers to streamline the tax filing process. Taxpayers as well as tax officials will have to quote the number on every communication without which no communication will be considered as received,” he said.

According to him, DIN will be useful for error-free filing of returns and claiming refunds. In the Finance Act, 2010, a new Section 282B was inserted for the allotment of DIN. The implementation of the new section was made effective from October 1.

Under the provisions of the section, every I-T authority shall 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 such number shall be quoted thereon. The document, which does not bear DIN shall be treated as invalid and be deemed never to have been issued. The same applies for the documents received by an I-T authority, or on behalf of such authority.

The I-T department will allot DIN on each incoming or outgoing communication so that no one can deny its existence. However, the I-T department needs to have the requisite infrastructure and facilities in place before it can cover the gamut of services mentioned in Section 282B on a pan-India basis.

DIN is aimed at bringing more transparency in tax administration as the whole exercise involves a number of documents and pro formas.

A taxpayer deals with the department for various financial services, which the DIN will help to ease.

Source: Telegraph