The taxpayers as well as collectors will have to mention a unique Document Identification Number (DIN) with their communication with the Income Tax (I-T) department. The Document Identification Number (DIN) is on the lines of the existing Permanent Account Number (PAN) and Tax Deduction Account number (TAN).According to the Central Board of Direct Taxes (CBDT), Document Identification Number/DIN will be compulsory with respect to every notice, order, letter or any tax-related communication, including the filing of returns for the financial year 2010-11. The Document Identification Number (DIN) will be generated by the I-T department and will distribute the numbers to assessees soon. Interestingly, the Income tax officials will also be allotted the numbers to streamline the tax filing process. Thus, the taxpayers and the tax officials will have to mention the DIN on every communication. Any communication without DIN will be considered no communication. DIN is expected to be useful for an error-free filing of returns and claiming refunds by the tax payers. A new Section 282B (in the Finance Act, 2010, ) was inserted for the allotment of DIN. The new section has come into effect from October 1, 2010. Under the provisions of the section 282B of the Finance Act, 2010, every I-T official 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. It further says, “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”. It is certainly a welcome move by the tax department as DIN aims at bringing more transparency in tax administration but it will pose a great challange for the tax administrators as it involves a number of documents and pro formas
you may have read similar article/post in news paper,blogs etc recently .But actual picture is totally different from what it is understood/presented"
DIN is like PAN and TAN ?
The answer is Big no ,PAN is identity of a assessee for income tax payment and assessment ,TAN is identity to tds and tds assessment .DIN is not alternative for either TAN or PAN but for identify a document issued/received by Income Tax department .These number will be unique for each document and to be generated by computer.So there can multiple DIN in respect of one assessee.In simple language it is a replacement of Diary and despatch numbers.
We have to get DIN number from Income tax to file return ?
The answer is no this time also ,there is no need to get DIN to file the return for Financial year 2010-11 ,in fact DIN will a be issued to assessee as a token of receipt on filing of income tax return .Earlier on filing of return a receipt number was issued to assessee by receipt clerk ,DIN is replacement of the receipt number only. Further the same number will be used by assessing officer while serving notices to client .
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 ?
This time the answer is yes ,but implementation of this section has been postponed by Finance act 2010,to 01.07.2011.
Amendment of section 282B.
51. In section 282B of the Income-tax Act [as inserted by section 78 of the Finance (No. 2) Act, 2009 (33 of 2009)], with effect from the 1st day of October, 2010,
(a) in sub-section (1), for the words income-tax authority shall, the words, figures and letters income-tax authority shall, on or after the 1st day of July, 2011, shall be substituted;
(b) in sub-section (3), for the words received by, the words, figures and letters received, on or after the 1st day of July, 2011, by shall be substituted.