Tax Information Network (TIN)

Tax Information Network (TIN)

Black money has always been the problem for the government. Indian tax depart from time to time comes with a unique method and system to unearth this black money. Some of the measures taken by the Income tax department in the past include- Tax on cash withdrawals and the annual information returns (AIR). Latest in this is TIN - Tax Information Network which was announced in the Union Budget 2003-04.

Features of TIN
TIN has certain features which every tax payer should know

• Now the whole banking system will be linked to the TIN central system.
  
• The banks will provide all 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 Centers for different entities having different computer skills.
  

Objectives of TIN

• The demat of TDS/TCS certificates will help the assessee to file the paperless IT returns .
  
• TDS fraud can be eliminated through the cross verification of the TDS and the TCS by the various organizations (deductors) with the credit claimed by the respective assessees..
  
• Government and corporate employer organizations can file TDS returns through electronic medium. This e-filing 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.
  
• AIR computerization on high value transactions will result in eventual widening and deepening of the country's tax base.
  

Benefits to the Government from TIN

• TIN will monitor the Tax deduction at source (TDS) and advance tax payments
  
• On the basis of permanent account number (PAN), TIN will process data on tax payers filing returns
  
• Amendments to the Prevention of Money Laundering Act and the setting up of Financial Intelligence
  
• Tax offenders can be tracked down easily
  
• Collection will be boosted by strong Investigation and audit.
  

TIN Facilitation Centers

• TIN Facilitation Centers has been set up by National Security Depository Ltd. (NSDL) for receiving, digitization and upload of e-TDS returns, TAN & PAN Applications to the TIN central system.
  
• As per the specifications of the Income Tax Department (ITD), TIN Facilitation Centers are setup at 252 locations across the country to facilitate deductors furnish their e-TDS returns.
  

Activities carried out by TIN Facilitation Centers

• Obtain e-TDS returns from deductors and upload them to the central TIN central system.
  
• Receive Form 49B (application for issuance of TAN ) from deductors.
  
• Get 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.