04 April 2010

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Know About Document Identification Number (DIN) – A new Compulsory Number –

Know About Document Identification Number (DIN) – A new Compulsory Number –


Reality views by sm -
According to a Central Board of Direct Taxes "insertion of new Section 282B" in the I-T Act, Document Identification Number DIN, will be mandatory "in respect of every notice, order, letter or any correspondence" with the department.



From this year that is the financial year (2010-11) it will become mandatory to quote mention on "every" tax related communication or correspondence.

Now the question is how the number will be given by Tax Department?

The department will soon put in place a tech-based mechanism to generate 'DIN' which will be allotted to taxpayers. The DIN will be generated by the computer.

The number will be generated by the department and will be useful essentially for error-free filing of tax returns, claiming refunds and other communication with the department by the assesses.

Assesses, that is tax payers will not be put to any trouble as the numbers will be generated and allotted by the department itself.
Once allotted, the assessee will have to quote it thereon.
I-T officials will also be allotted the numbers as the effort is to streamline the process.

As per the new section 282B, it is provided that where the notice, order, letter or any correspondence issued by any income-tax authority does not bear a Document Identification Number, such notice, order, letter or any correspondence shall be treated as invalid and shall be deemed never to have been issued.

The purpose behind the introduction of DIN is that to bring more transparency in the administration of tax.

It is also provided that every document, letter or any correspondence, received by an income-tax authority or on behalf of such authority, shall be accepted only after allotting and quoting of a computer generated Document Identification Number.
Further, it is provided where the document, letter or any correspondence received by any income-tax authority or on behalf of such authority does not bear Document Identification Number, such document, letter or any correspondence shall be treated as invalid and shall be deemed never to have been received.
It is expected that from the October 2010 the department will start to give the DIN numbers.