Document Identification Number : IT Department Introduces A New Identification For Tax Payer.

The government has made it compulsory for taxpayers as well as tax collectors to quote a special 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).

Taxpayers will now have to procure a ‘new number’ for filing returns and making any communication with the Income Tax department. The unique Document identification number (DIN), on the lines of numbers like PAN and TAN, will be quoted on “every” income tax-related communication, including returns to be filed next year for the financial year 2010-11. According to the new guidelines brought out by the Central Board of Direct Taxes (CBDT), the DIN will be mandatory “in respect of every notice, order, letter or any correspondence” with the department, by the taxpayers.

“The DIN will be generated by the I-T department and will be useful, essentially, for error-free filing of tax returns, claiming refunds and other communication with the department by the assesses,” a senior Finance Ministry official said.

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

Apart from regular filing of taxes, a taxpayer deals with the department for various other financial services, which DIN will help to ease, the official said.

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