Tax Information Network (TIN)

The Income Tax Department has been regularly introducing few measures to unearth black money. Tax on cash withdrawals and the annual information returns (AIR) are only few to be named. Now it has come up with TIN - Tax Information Network. Though it was announced in the Union Budget 2003-04, this is the second phase of the proposed system. We will look into the features of TIN, the objectives and the benefits to the government.

Features of TIN

The banking system will be linked to the TIN central system.
The banks will be providing online accounting information on tax paid by various entities to the TIN central system.
TIN also provides direct uploading by deductors through a web interface.
TIN design provides TIN Facilitation Centres for different entities having different computer skills.

Objectives of TIN

The demat of TDS/TCS certificates will enable paperless filing of I-T returns by assessees.
The cross verification of the TDS and the TCS by the various organisations (deductors) with the credit claimed by the respective assessees will also help in eliminating TDS frauds.
e-filing of TDS returns by the Government and corporate employer organisations will eliminate the need to enclose copies of challans and other documents and thus lead to a marked reduction in the cost of tax compliance.
The computerisation of AIRs on high value transactions will result in eventual widening and deepening of the country's tax base.

Benefits to the Government from TIN

Tax deducted at source (TDS) and advance tax payments are to be monitored through TIN.
The network will process data on tax payers filing returns on the basis of their permanent account number (PAN).
Amendments to the Prevention of Money Laundering Act and the setting up of Financial Intelligence Unit will also aid in tracking down tax offenders.
Investigation and audit are also to be strengthened to boost collections.

TIN Facilitation Centres

National Security Depository Ltd. (NSDL) has established TIN Facilitation Centers for receiving, digitisation and upload of e-TDS returns, TAN & PAN Applications to the TIN central system.

TIN Facilitation Centers are setup at 252 locations specified by the Income Tax Department (ITD) across the country to facilitate deductors furnish their e-TDS returns.

Activities carried out by TIN Facilitation Centres

Receive e-TDS returns from deductors and upload them to the central TIN central system.
Receive Form 49B (application for issuance of TAN ) from deductors.
Receive Form 49A (application for issuance of PAN ) from applicants.
Receive Request for New PAN card and / or Changes or Correction in PAN data from applicants.

Back

Keywords:

taxation, direct taxation, indirect taxation, tax planing, tax, tin, tax information networkm, taxation admin, taxtation procedure, facilitation center, tin facilitation centers