"Departmentalised Accounting System for Direct Taxes Receipts and Refunds". - Income Tax - 1117/CBDT

INSTRUCTION NO. 1117/CBDT Dated : November 16, 1977 Reference is invited to clause (ii) of para 6.6 of the booklet "Departmentalised Accounting System for Direct Taxes Receipts and Refunds" issued by the Central Board of Direct Taxes, according to which separate instructions were required to be issued regarding the taxes deducted at source from the State Government employees etc. 2. The CCA has since issued instructions to the Zonal Accounts Officers vide Instruction No.CCA-7-R (F.NO.101/29/77-CCA) dated the 17th August, 1977, a copy of which is printed below. The Minister of Finance (Department of Expenditure), New Delhi, has also written to all the State Governments on this subject vide Office Memorandum F.No.2(112)/176/sc/VOL-II dated the 2nd September, 1977, a copy of which is printed below. The procedure to be followed for accounting of tax deducted at source from the salary and other bills of the State Government, within the Income-tax Department by the Commissioners of Income-tax is indicated below:- (i) while the ZAOs have been assigned the task of obtaining cheques/demand drafts and supporting schedules etc. from the Accountants General in respect of the tax deducted at source by the State Governments and depositing such cheques/drafts with the focal point banks, the Commissioners of Income-tax concerned will also use their good offices with the Accountants General in case of any delay, on being advised by the ZAOS. The list of ZAOs nominated for this purpose is given in Annexure II of the O.M. dated 2nd September, 1977 from the Department of Expenditure, referred to above. The bank will intimate through a separate scroll to the Zonal Accounts Officer only, and not to the CTU/UTC/ designated officer the amount of tax which has been credited in the account of the CBDT (Revenue). As soon as the bank scroll is received by the ZAO, he will inform the CIT (CIT-I in multi-Commissioners' charges) at the place where the office of the ZAO concerned is located, the amount which has been credited to the account of the CBDT (Revenue). A copy of the schedule and other particulars obtained from the Accountant General will also be furnished to that CIT. On receipt of the intimation, the amount will be included initially by the CIT under the major head "021-Taxes on Income other than Corporation-tax" and reported in the Monthly Telegraphic Net Collection Report which is sent by him to the Board. (ii) The ZAO will also furnish detailed major, minor and sub-headwise break-up of the amount of tax deducted at source by State Government to the CIT and these details would be included in the Additional Information Statement of net collection of the month in which the amount is included in the Telegraphic Net Collection Report. In case of delays in receipt of detailed break-up from some Treasuries, the Cs.I.T. concerned will also take up the matter with the Treasury Officers of the respective State Governments, on being informed by the ZAOs. However, if the said break-up is not received before the due date for the submission of the Additional Information Statement, the amount should be shown against a suspense head in the said statement after column 10(g) of the proforma circulated vide Board's letter F.No.370/76/74-IT(B) dated 15.3.75. The nomenclature of the suspense head is "Amounts deducted at source kept in suspense pending receipt of detailed classification". On receipt of the break-up of collections from the ZAO, the suspense head should be cleared by transferring the amount to appropriate heads/sub-heads of account. This suspense head may also be operated for showing other collections of TDS (including those by Central Government departments - applicable, for CIT, Delhi-I, New Delhi only) for which minor/sub-headwise break-up is awaited, at the time of submission of the Additional Information Statement of a month to be cleared later on after receipt of the head/sub-headwise break-up. (iii) As regards the organisation of the CCA, the accountal of TDS by State Government Department will be done by the respective ZAOs. The payments intimated to the CIT by the ZAO should not, therefore, be included in the Monthly simple Account Statement and in the Monthly Detailed Account Statement which are furnished to the ZAO by each designated officer in view of paras 4.10 and 2.5(iii) of the booklet. "Departmentalised Accounting system for Direct Taxes Receipts and Refunds." 3. In case there are more than one Cs.I.T. in the State, the ZAO will furnish details of the tax deducted at source containing treasury-wise figures. The CIT who receives the information from the ZAO will arrange the Treasury-wise figures CIT charge-wise and pass on the same to the Cs.I.T. having jurisdiction to receive the annual salary returns under section 206 of the Income-tax Act from the concerned DDOs of the State Government. The information so received should be appropriately made use of the by the Cs.I.T.. and in particular for ensuring that the Treasuries/Pay and Accounts Offices etc. are regularly transmitting the figures of the tax deducted at source by them to the A.Gs concerned. 4. The amounts deducted at source by the State Government will be included in the Budget of the CIT who receives intimation from the ZAO. As a result of this arrangement, all matters regarding increasing or reducing the targets of collection of the current year of other affected charges should be settled by the Cs.I.T. concerned. The CIT whose target would be so increased, will intimate to the Board by 10th December, 1977 the amount of increase in the target of collection for his charge over that fixed by the Board with the corresponding reduction in the targets of collection of each of the others affected Cs.I.T. The Board hopes that this increase/decrease will be effected on an agreed basis among the concerned Cs.I.T. However, if any difficulty arises, the CIT will make a reference to the Board indicating the precise points of dis-agreement and the views of the other Cs.I.T. in this regard.