Introduction of unique transaction number shelved

The government has decided to shelve the introduction of the unique transaction number (UTN), which taxpayers need to quote along with the permanent account number (PAN) when tax is deducted at source.

The scheme was to have come into force from the new year. However, the finance ministry has not ruled out the possibility of introducing a new identity number like UTN from the next financial year, in addition to PAN to ensure prompt verification and granting of tax credits to taxpayers.

“The introduction of UTN, which was scheduled to be implemented from January 2010, has been shelved in all probability. The process of filing tax returns remains the same as earlier,” a senior finance ministry official said.

A similar arrangement of having a new identity number was “under contemplation”, but it would only happen from the next financial year, the official said.

The government had earlier said the system of allotting UTN was “expected” to become operational by January 1, 2010.

The move to introduce UTN had invited concerns from taxpayers, as it would have brought in a slew of formalities for them, through their respective collectors and deductors to avail of the new number and file their returns on time.

The exercise to have a new identity number like PAN is huge and it would have brought a lot of complications for taxpayers, the finance ministry official said.

The Central Board of Direct Taxes (CBDT) had deferred UTN’s introduction on June 30 this year, saying, “taxpayers filing their income tax returns for 2009-10 or any other earlier assessment year, may continue to file their returns without UTN”.

CBDT, in a circular earlier, said UTN was mandatory for filing tax returns due to certain lacunae like individuals having more than one PAN.