Govt okays Phase II of TIN

In a move that will pave way for a low-cost paperless filing of income tax returns and elimiate TDS frauds, the government on Wednesday gave the go-ahead for setting up of the Phase-II of the tax information network (TIN) at a cost of over Rs 100 crore. Necessary legal changes have been made in the income tax with effect from April 1 in line with the setting up of TIN.

According to a an official release, Phase-II will provide for collection of deductee-wise data in TDS/TCS (tax collected at source) returns for eventual dematerlisation of TDS certificates, computerisation of annual information returns of high value transaction and integration of information relating to processing of returns of income.

Phase-II of TIN is estimated to cost Rs 101.25 crore over a period of three years. Out of this, a sum of Rs 68.75 crore will be payable by the government and Rs 32,5 crore will be realised from tax deductors. Phase-I of TIN has become operational. The Cabinet also approved the implementation of the India-Croatia treaty acccording to which diplomatic and official passport holders of India and Croatia will be given visa exemption.