Accounting of receipts of direct taxes. - Income Tax - 1325/CBDT

INSTRUCTION NO. 1325/CBDT Dated: March 27, 1980 A reference is invited to the C.B.D.T. M. No.385/85/78-IT(B) dated the 30th November, 1979, (herein-after referred to as the 1979 O.M.) on the above subject. The modifications effected in the accounting of receipt of direct taxes detailed therein were discussed with the various officers of the CTUs and LTUs on the 25th and 28th of January, 1980. In pursuance of the above discussions, the following further clarifications are issued, on certain points of doubt raised by the officers. Para 3 (b) of the 1979 O.M. point - 1 ========= Some of the participants mentioned that a rubber stamp containing the date of the main scroll is being put in some charges on the challans to facilitate control over their distribution by the CTUs. The question arose as to whether the rubber stamp containing the Month of Account should be in addition to this stamp. Clarification: The Month of Account stamp is very essential to the modified system for ensuring complete and detailed accounting of all the challans. There would, however, be no objection if a single stamp containing both the Month of Account and the date of the main scroll is affixed on each challan. It has to be ensured that the main scroll of the preceeding month, if received after the cut off date, should bear the next month of account stamp and should be accounted for in the next month. Para 5(b) of the 1979 O M. Point :2 Whether cut-off date fixed for accounting of chalans/refund advices during a month viz., 5th of the following month will be applicable for the month of March ? Clarification : No. All the challans/refund advices received upto the last main scroll of the focal point bank for the month for March will have to be accounted for in that financial year, even if there is a delay of a few days in their receipt. In other words, all such chalans/refund advices will have to be accounted for in the same financial year. Para 5 (c) of the 1979 O.M. Point : 3 Whether the columns in the distribution memo for recording serial number and amount of challans should show the individual amounts of each challan or only the total of all the amounts ? Clarification : The distribution memos will show the individual amount of each challan. The modified formats of CTU, DCUs and LTUs Distribution memos of chalans and Refunds are enclosed as Annexure A1 to A4. Para 5 (f) of the O.M. Point : 4 Should each DCU/LTU maintain 6 separate CDRSs/CRDRs ? Clarification: Not necessary. Depending upon the number of entries to be made, there is no objection if CDCRs are bound in one volume and similarly CRDRs bound in another. Care has, however, to be taken that appropriate type of loose forms are inserted while binding them in a volume. Para 5(g) of the 1979 O.M. Point No.5 Does ITO-wise segregation of challans as mentioned in para 5(g) of the 1979 O.M. mean posting in the CDCRs/CRDRs ITO-wise ? Clarification : No. It does not mean that the entries have to be made in separate ITO-wise CDCRs/CRDS. Segregation ITO-wise, before their entry would, by and large, indentify challans not pertaining to a particular DCU. After such segregation, entry should be made by DCU in only one set of CDCR/CRDR. Point : 6 In certain Cs.I.T. charges (e.g. CIT Kerala) the LTUs do not distribute the challans direct to the ITOs, but send them to circles(s) incharge of an IAC(s) who in turn send the same to the ITOs. In such cases, the Central DCRs can be maintained only in the circles and not at the level of the LTUs. Is there any objection in following this practice ? Clarification : No. There is no objection. The LTUs, will in such cases, virtually function as CTUs and the Circles as DCUs. Point No.7 Where the LTUs have been sending challans directly to the ITOs, but considering the large number of challans, entry in CDCRs/CRDRs will result in delays can two or more I.A.C.-wise circles be created and CDCRs/CRDRs maintained there instead of by the LTU ? Clarification : Yes. However, the first priority, repeat the first priority is to ensure that the challans reach the respective ITOs normally within 5-6 days of their receipt by the CTU/LTU. Point No.8 It has been stated that before making entry in the CDCRs/CRDRs, LTUs/DCUs will also check the clarification on the challans/refund advices and make necessary corrections thereon as per the procedure prescribed under DOMS Circular No.26 dated 30.6.78. As these corrections will be made without consultations with the concerned ITOs, the misclassifications may persist ? Clarification : Furnishing of detailed accounts by DCUs/LTUs on the basis of their entering the challans in a Central D.C.R. without waiting for the accounts from the large number of individual ITOs is one of the basic concepts of the new accounting procedure. As regards misclassifications, the DCUs are mostly headed by IACs in-charge of the ward ITOs and the LTUs are also headed by the IACs or the principal ITOs. Hence, these officers and their staff will be having a fair knowledge of the charges of their assessing ITOs and should be in a position to correctly classify the challans at the time of their entry in the Central D.C.Rs. The knowledge can be updated by supplying the list of company assessees under the particular DCU/LTU. Some orientation lectures may also be arranged for such staff about correcting the classification on the challans. Even, so, any corrections subsequently intimated by the individual ITOs should be carried out by the DCUs/ITUs but the monthly compilation of detailed accounts as per the Central DCRs should not be delayed on this account. Such chances of misclassification can also be minimised by associating the ITOs or their staff to the extent possible at the time of making entry in the Central DCRs by the DCUs/LTUs. Para 5(k) of the 1979 O.M. Point No.9 How will it be ensured that all the challans sent to the concerned ITOs have been entered in their DCRs/D CRs, since self assessment and most of TDS challans have to be entered only in the DCRs but not in the D CRs ? Clarification : While the DCUs/LTUs send the chalans and the distribution memos the abbreviations 'Ad' and 'R' may be used to denote 'Advance Tax' and 'Regular assessment' challans respectively. The ITOs will be required to return a copy of the distribution memo with the D CRs Nos written against such entries. In respect of other challans which do not require their entry in the D CR, viz, self-assessment chalans, T.D.S. challans the columns 'D CR No.' in the Distribution Memo will not be filled in. However, the ITOs may be asked to give a certificate that all the challans/refund advices mentioned in the memo have been entered in the DCRs. The receipt of these distribution memos should be closely watched. Para 7 of 1979 O.M. Accounting of inter/intra-zonal transfer challans/refund advices Point No.10 Since it has been decided that 'transfer challans' received by a Designated Officer (D.O.) should be accounted for in his 'Detailed Accounts' (irrespective of the circle to which these are to be transferred) should not the amount of challans be included in the collections of the CIT under whom the said D.O. is working ? Clarification : No. The final accountal of transfer chalans by the Designated Officer is only for purposes of his rendering accounts to the ZAO, who in turn submits the accounts to the C.C.A. and the Controller General of Accounts (CGA). So far as the managerial and budget statements (I.T.N.S.71) furnished by each Commissioner to the Board are concerned, the CIT should include in their reports only the net collection figures pertaining to this charge. Thus, the monthly telegraphic report from the CIT to the Board will be worked out as under- (a) Total collections as per bank scrolls for the month; (b) Less collections pertaining to other Commissioner's charges (transfers out-ward); (c) Balance; (d) Add: collections transferred by other Commissioners charges as and when received from them (transfers inward); (e) Total net collections for the CIT charge. Similar adjustments should also be carried out by them at the time of their sending the detailed account statements referred to in para 8(d) of the 1979 O.M. Detailed instructions in this regard will be sent by CCA. Para 7(e) of 1979 O.M. Point No.11 The format of the proforma accounts to be maintained in respect of transfer chalans referred to in this para has not been communicated. Clarification : The proforma accounts may be maintained as per enclosure at Annexure 'B' So far as the challans to be transferred out are concerned, as these are to be finally accounted for before their transfer, these will have to be entered in a Central DCR or in a separate part of the Central DCR titled "Outward Transfers CDCR" to be maintained by D.O. Before their posting. the chalans pertaining to (i) Outstation Designated Officer within the same zone and (ii) those outside the zone should be segregated. These would then be posted in separate sections of the relevant CDCR/part of the CDCR. The figures pertaining to (ii) only will get reflected in the Proforma Accounts. So far as 'transfer in' challans are concerned (i.e., challans received by a CIT from another circle where they have already been accounted for), these will also have to be segregated into (i) received from within the same zone and (ii) received from outside the zone. The chalans of the latter type may be titled "Inward transfer chalans received from outside the Zone" by the D.O. as they have already been once accounted for but have to be entered in the collection figures as shown in the proforma account (Column 6). The chalans pertaining to the same Zone would not require similar treatment as they would have already been included in the detailed accounts of the same zone by the Designated Officer receiving them initially. Point No.12 What will be the procedure to be adopted for transmission of "accounted for" challans/refund advices ? Clarification : The challans/refund advices which have been entered in the Central DCRs/CRDRs by any accounting unit will be forwarded by means of a forwarding letter (Annexure XXIII of the DOMS booklet) and the procedure outlined in part VIII of the DOMS booklet followed mutatis mutandis. The revised form of annexure XXIII is also enclosed as Annexure 'C' . Para 132 of 1979 O.M. Point No.13 It was felt that in some charges it may be difficult to provide the requisite number of additional hands to the DCUs/LTUs to manage the additional workload in maintaining the CDCRs/CRDRs. This may cause delays in the transmission of chalans to the ITOs. Clarification: The maintenance of CDCRs/CRDRs will reduce the number of accounting points for furnishing accounting statements. Thus will bring about speed and CsIT will also be able to exercise a much better control. Board therefore desires that the saving in man-power due to simplification of the accounting procedure in the CTUs/LTUs should be diverted for the maintenance of CDCRs/CRDRs. If some extra manpower is still needed for this work, it may for the present be diverted by the Commissioners from within their sanctioned strength. The CDCRs/CRDRs should be introduced from 1.4.80 except in cases specified in para 5(j) of the 1979 O.M. . The charges where CDCRs are already being maintained, in all the IACs' Ranges or in some of them will continue to be taken to see that the detailed accounts are not delayed on this score. Further even in such a contingency, the CTUs/LTUs can maintain CDCRs in respect of 'floating chalans/transfer challans' to ensure rendering of complete detailed account. Point No.14 Since the new procedure has been introduced w.e.f. 1.1.80, there will be two patterns of accounting for the year 1979-80 viz., the old procedure upto 31.12.79 and the new procedure from 1.1.80 to 31.3.80. Will this not create confusion in accounts ? Clarification: While most of the changes are of an administrative nature and the accounting change is mainly in respect of transfer challans only, there should be no difficulty in following the new procedure in respect of the challans pertaining to the main scrolls bearing the date 1.1.80 and onwards. However, the transfer chalans pertaining to the earlier period received in January '80 and later months' accounts will have to be accounted to as per the old procedure only. It is also mentioned that the existing procedure already prescribed in the 'System of Accounting for Direct Receipts and Refunds' issued by DOMS and 'Departmentalised Accounting System for Direct Taxes Receipts and Refunds' issued by CBDT will continue to be followed except the changes as indicated in the 1979 O.M. and clarifications given above. These booklets will be revised and issued in due course.