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.
How TIN works
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