CBDT Current Affairs - 2019

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CBDT launches Documentation Identification Number

The Central Board of Direct Taxes (CBDT) has launched a computer-generated Document Identification Number (DIN) to ensure greater transparency and accountability in tax administration. Thus from now onwards, every CBDT communication will have to have a documentation identification number. The DIN system has been created as per the direction of Nirmala Sitharaman, Union Minister of Finance.

About Documentation Identification Number (DIN)

The path-breaking DIN system became operative from 1 October 2019 and will apply to all kind of communications from Income Tax (IT) Department, whether it is related to investigation, assessment, rectification, appeals and penalty among other things. On first day of systems’ implementation, nearly 17,500 communications have been generated with DIN.

Mandate: Any communication from IT Department without a computer-generated DIN, be it a notice, letter, order and summon or any other correspondence, would be treated as invalid and shall be deemed as if it has never been issued. Also, all such communications with DIN would be verifiable on e-filing portal and no communication would be issued manually without DIN. The only exceptional circumstances is in the case if the communication is issued manually and it would have to be uploaded and regularised on the system portal within 15 days of its issuance.

Benefits: DIS system would ensure greater accountability and transparency in tax administration. This development would also help taxpayers detect fake notices and letters as the notice would be verifiable on e-filing portal of department.

CBDT notifies creation of special cell for startups

Central Board of Direct Taxes (CBDT) has created five-member special cell to address grievances of startups with relation to angel tax and other tax-related issues. It will be headed by member (Income Tax and Computerisation) of CBDT. This initiative is the latest amongst the recent initiatives taken by the CBDT to further ease the compliance issues pertaining to startups.

Special Cell

It will work towards redressal of grievances and mitigate tax-related issues in case of startup entities with respect to administration of Income-tax Act, 1961. Startup entities can approach the cell for speedy resolution of their grievances.

Background

Finance Minister Nirmala Sitharaman her recent press conference had announced creation of such a cell in the CBDT and had declared exempting startups from the so-called angel tax. She had mentioned that Government has decided that section 56(2)(viib) of the Income-Tax Act shall not be applicable to a startup registered with DPIIT. She also had notified that startup having any income tax issue can approach cell for quick resolution of the same for mitigating genuine difficulties of startups and their investors.