In a significant move to tighten corporate governance and enhance traceability, the Central Board of Direct Taxes (CBDT) has made it mandatory for companies to disclose the Director Identification Number (DIN) of all directors in their income tax returns. This requirement, applicable from the current assessment year, aims to improve data transparency and facilitate better inter-departmental coordination between the Income Tax Department and the Ministry of Corporate Affairs (MCA). Companies filing ITR-6 must now ensure that each director’s valid and active DIN is properly reported in the designated section of the return form.

The updated instructions clarify that returns submitted without accurate or valid DIN entries may be treated as defective, prompting resubmission and scrutiny. Inactive or deactivated DINs will also trigger alerts during filing, compelling companies to verify and regularize such inconsistencies beforehand. This measure is expected to curb shell company operations, cross-directorship misuse, and enhance accountability of corporate promoters and key managerial personnel.

To assist in compliance, the e-filing portal has been equipped with a real-time DIN verification tool that cross-checks details with the MCA database. Companies are advised to review their director records in advance, confirm DIN activation statuses, and update MCA filings if discrepancies are found. The inclusion of DIN in returns strengthens the government’s commitment to corporate transparency, financial discipline, and the early detection of non-compliant business practices.