Statement of tax in arrears. - Income Tax - 1335/CBDT

INSTRUCTION NO. 1335/CBDT Dated: May 28, 1980 The problems of proper presentation of tax arrears and of ensuring their uniformity in different statements have been engaging the attention of the board. 2. The following decisions after considering the report of a Departmental committee have been taken in this regard:- i) Interest charged u/s.220(2) of the I.T.Act should be treated as current demand in the year in which its demand is raised even though it is in respect of arrear demand. ii) Quarterly statement of tax-in-arrears for the quarter ending 31st March if sent without completing the checking and reconciliation should be marked provisional. Only after the reconciliation and checking work has been completed in respect of all the IAC ranges the CIT should send the Final quarterly statement to the DI(RS P). A footnote should be given by the CIT in that quarterly statement that the checking and reconciliation of his charge has been completed. Similar footnote should be given by the range IAC in respect of the quarterly statement of the range etc., At the base level the ITOs/IACs should prepare separate provisional and final quarterly statements for the quarter ending 31st March to facilitate their consolidation by the range IAC/CIT. iii) From multi-commissioner's charges every quarterly statement of tax-in-arrears will hereafter be sent to DI(RS P) by each CIT separately instead of one consolidated statement being sent by CIT-I as at present. iv) The work of posting in the DCR and D CR of challans including out-station chalans in respect of payments made during the preceeding financial year should be completed as expeditiously as possible and preferably before the work of carry over of tax arrears is commenced. Challans pertaining to the preceeding financial year with month of account marked as March or an earlier month but received after the tax arrears have been carried over to the current years D CR and totalled should be accounted for as reduction out of arrear demand during the current year. Such challans should be entered in a separate portion of the DCR of the preceeding financial year to facilitate reconciliation of the arrear demand. At the same time in the relevant collection statements including the detailed account statement and the budget estimates in ITNS-71 such collections will have to be shown in the preceeding financial year as they would have been accounted for by the CTUs/LTUs in that year. The separate portion in the DCR in the preceeding financial year may be titled collection of the year affecting arrear demand in the next financial year. 3. Vide boards instruction No.1244 dated 30-3-79 it was stated that the work of checking and reconciliation should be completed before 15th June. Board desires that these instructions should be observed scrupulously so that there is no occassion for delay in the submission to the DI (RS P) of the final quarterly statement for the quarter ending 31st March of a financial year.