Penalty on tax payers who fail to make Compulsory Deposits. - Income Tax - 917/CBDT

INSTRUCTION NO. 917/CBDT Dated : February 5, 1976 Section 10 of the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974 provides for imposition of penalty on tax payers if they fail to make Compulsory Deposits. Some of the Commissioners of Income-tax desired to know the head of Account under which such penalty should be credited. They also sought clarification as to whether any separate challan should be used for this purpose. The matter was referred to the Department of Economic Affairs. That Department has decided, in consultation with the C AG, that for adjustment of penalties imposed under the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974, the following head of classification should be used:- "065- Other Administrative Service- Other Services - Other Receipts". 2. It is also clarified that the existing challan used for making payments of tax on completion of regular assessment by non-company assessees will be utilised for this purpose, indicating therein the above classification and after scoring out, with red ink, the existing major head on that challan, namely, "21-Taxes on Income other Corporation Tax". 3. This also disposes of the points raised by Commissioner of Income-tax, Tamil Nadu-I, in para 6 of his letter No. C.229-I(6)/75, dated 29-1-75 and by the Commissioner of Income-tax, Andhra Pradesh-I in his letter No. Pdl.17 (VER)/74-75, dated 28-10-1975.