Arrears of annuity. - Income Tax - 1214/CBDT

INSTRUCTION NO. 1214/CBDT Dated : October 27, 1978 Reference is invited to the Board's letter F.No.375/26/76-IT(B) dated 19th April 1976 on the subject and to say that the question whether arrears of annuity deposits which have become irrecoverable can be written off in the manner as in the case of income-tax arrears was examined by the Board in consultation with the Department of Expenditure, C AG and Ministry of Law. It has now been agreed that the arrears of Annuity deposits which have become irrecoverable can be written off in the same manner as provided for writing off of arrears of income-tax. The procedure of write off/scaling down of income-tax arrears would therefore apply mutatis-mutandis in the case of writing off of arrears of annuity deposits. The powers of write off by various authorities would be regulated as under: ------------------------------------------------------------------------- Name of the authority Amount of write off ------------------------------------------------------------------------- i. Full Board with the approval of the Above Rs.50 lakhs Minister. ii.Full Board Between Rs.25 lakhs 50 lakhs iii. Individual Member of the Board Between Rs.10 lakhs 25 lakhs iv. C.I.T. Upto Rs. 10 lakhs. v. I.A.C. Rs.10,000 vi I.T.O.Class 1 Rs.1000 vii I.T.O.Class 2 Rs.500 ------------------------------------------------------------------------- 2. For the purpose of writing off/scaling down the irrecoverable arrears of Annuity deposit, it is clarified that the limits for the exercise of the powers will be determined with reference to the aggregate of the amount both of Annuity Deposit and Income-tax outstanding from a tax payer at the time of their write off or scaling down. 3. All cases of arrears of annuity deposits may please be reviewed and those found irrecoverable may be written off in accordance with the above instructions. The cases in which income-tax arrears were written off with the approval of the Board but the annuity deposit arrears were kept alive pending finalisation of the procedure need not be referred to the Board again unless the amount of annuity deposit arrears and income-tax arrears - in partial write off cases now outstanding exceeds Rs.10 lakhs.