Discontinuance of Fidelity Insurance bonds by TROs/ITIs. - Income Tax - 1826/1989

INSTRUCTION NO. 1826/1989 Dated: August 28, 1989 Reference is invited to boards instruction No.315 dated 26-7-71 wherein board had clarified the mode of dealing with cash whenever TRO's/ITI's received payment of taxes in cash. As per para 3 of the instructions, the TROs/ITIs are required to furnish fidelity Insurance Bonds for Rs.5000 each. In a study conducted by the Directorate of Organisation and Management Services (IT), it was found that the stipulation of these bonds was not necessary as it may not serve any purpose. It was also pointed out that officers who are sent on search and seizure work are not required to execute similar bonds even though they deal with cash and other valuables. Considering all these aspects it has been decided to dispense with the need for furnishing of fidelity bonds by Tax Recovery Officers/ Tax Recovery Inspectors. Wherever it has already been done, necessary action may be taken to discontinue the same. These instructions may be brought to the notice of all the officers working in your region/charge.