OFFICE OF THE PRINCIPAL CHIEF CONTROLLER OF ACCOUNTS CBDT MIN. OF FINANCE 9TH FLOOR LOK NAYAK BHAWAN NEW DELHI 110003
THE ORGANISATION
(A) THE CENTRAL BOARD OF DIRECT TAXES
The
Historical Background of the Board is that The Central Board of Revenue as the
Department apex body charged with the administration of taxes came into
existence as a result of the Central Board of Revenue Act, 1924. Initially the
Board was in charge of both Direct and Indirect Taxes. However, when the
administration of taxes became too unwieldy for one Board to handle, the Board
was split up into two, namely the Central Board of Direct Taxes and Central
Board of Excise and Customs with effect from 1.1.1964. This bifurcation was
brought about by constitution of the two Boards u/s 3 of the Central Boards of
Revenue Act, 1963.
The
Central Board of Direct Taxes is a statutory authority functioning under the
Central Board of Revenue Act, 1963. The officials of the Board in their
ex-officio capacity also function as a Division of the Ministry dealing with
matters relating to levy and collection of Direct Taxes and formulation of
policy concerning administrative reforms and changes for the effective
functioning of Income-Tax Department.
Composition
and Functions of C.B.D.T.
The Central Board of Direct Taxes consists of
a Chairman and following six Members:-
1.
Member Income Tax
2.
Member Investigation
3.
Member Audit and Judicial
4.
Member Legislation
5.
Member Personnel
6.
Member Revenue
The Chairman and Members of the Central Board of Direct
Taxes are assisted by Joint Secretaries, Directors, Deputy Secretaries, Under
Secretaries and ministerial staff to carry out their day-to-day functions.
Other subordinate offices comprise 110 Chief Commissioners of Income Tax
& DGIT’s who head the Income-tax Department at the Regional level. The
Commissioners of Income Tax and Commissioners of Income-Tax
(Appeals), Appropriate Authorities work under
them. The Commissioners function in a
territorial jurisdiction or have jurisdiction over a particular class or group
of assesses. The Commissioners of Income-Tax
are assisted by Deputy Commissioners of Income-Tax (Appeals), Assistant
Commissioner of Income-Tax and Income-Tax Officers. The Deputy
Commissioners, Assistant Commissioners and Income-Tax Officers, who are in charge
of assessment work, are referred to as Assessing
Officers. Job classification norms have been laid down to divide
assessment work amongst different cadres of Assessing Officers.
Inspectors of Income-Tax and the clerical staff assist Assessing Officers.
(B) ORGANISATION
OF THE PRINCIPAL CHIEF CONTROLLER OF ACCOUNTS, CENTRAL BOARD OF DIRECT TAXES.
The Principal Chief Controller of Accounts
(Pr. CCA) heads the accounting organization of the Central Board of Direct
Taxes with Revenue Secretary as the Chief Accounting Authority. At the field level, there are 52 Zonal
Accounts Offices (ZAOs) under the jurisdiction of Principal Chief Controller of
Accounts, Central Board of Direct Taxes. Earlier there were only 24 ZAOs,
however on Account of Restructuring of Accounts Wing of CBDT 28 new ZAOs &
4 E-PAOs have been created. The organization chart reflecting the different
tiers of posts and jurisdiction is shown in chart 1.3.
The main responsibilities allocated to the
Office of Pr. CCA and its offices throughout the country are:
·
Payment functions of entire Income
Tax Department.
·
Expenditure and Revenue Accounting
of offices under CBDT
·
Authorization and
Deauthorisation of Bank Branches to undertake direct tax collection and refund
work.
·
Imposition of interest on
delayed remittances.
·
A close monitoring of the
Direct Tax collection made through the nominated Banks and ensuring their
timely remittance to Govt. Accounts.
·
Processing the cases for
opening of Personal Deposit Accounts.
·
Conducting Internal
Audit/Inspection of the formations under the Income Tax Department and the
nominated/accredited banks.
·
Rendering financial and
technical advice to CBDT on matters relating to the collection, accounting,
remittance and reconciliation of Direct Taxes.
52 ZAOs with a spatial spread encompassing
the whole country assist the Pr. CCA in
discharging these responsibilities. In
addition there are 1404 Drawing and Disbursing Officers (DDOs) of which 41 are
Cheque Drawing (CDDOs). The rest i.e. 1363 Non-Cheque Drawing DDOs submit their
bills either to the CDDOs or directly to the concerned ZAO. The details of the Drawing and Disbursing
Officers are given in Annexure ‘A’.
ANNEXURE ‘A’
Sr. No.
|
Zonal
Accounts Office
|
FPU
|
No. of NCDDOs under ZAOs
& FPUs
|
|
AGRA
|
ALIGARH
|
20
|
|
AHMEDABAD
|
BHAVNAGAR
JAMNAGAR
|
47
|
|
AMRITSAR
|
BHATINDA
|
21
|
|
ALLAHABAD
|
VARANASI
GORAKHPUR
|
38
|
|
BANGALORE
|
MYSORE
|
47
|
|
BHUBANESHWAR
|
CUTTAK
BEHRAMPUR
SAMBHALPUR
|
33
|
|
BHOPAL
|
JABALPUR
GWALIOR
|
38
|
|
KOLKATA
|
-
|
48
|
|
CHENNAI
|
-
|
42
|
|
COCHIN
|
TRICHUR
CALICUT
|
25
|
|
NEW DELHI
|
CBDT FPU
CIT FPU
|
52
|
|
HYDERABAD
|
VIJAYAWADA
GUNTUR
TIRUPATI
|
138
|
|
JAIPUR
|
AJMER
|
24
|
|
JALANDHAR
|
-
|
11
|
|
KANPUR
|
-
|
20
|
|
LUCKNOW
|
-
|
29
|
|
MEERUT
|
GHAZIABAD
MUZZAFFARNAGAR
|
10
|
|
MUMBAI
|
-
|
33
|
|
NAGPUR
|
AKOLA
|
36
|
|
PATNA
|
MUZZAFFAPUR
|
47
|
|
PUNE
|
KOLHAPUR
SHOLAPUR
|
30
|
|
PATIALA
|
-
|
16
|
|
ROHTAK
|
FARIDABAD
|
33
|
|
SHILLONG
|
SILCHAR
AGARTALA
IMPHAL
|
13
|
|
DURGAPUR
|
-
|
10
|
|
MADURAI
|
-
|
17
|
|
LUDHIANA
|
-
|
10
|
|
BAREILY
|
MORADABAD
HALDWANI
|
29
|
|
UDAIPUR
|
AJMER
|
24
|
|
RAIPUR
|
-
|
20
|
|
DEHRADUN
|
-
|
10
|
|
JAMMU
|
-
|
9
|
|
CHANDIGARH
|
-
|
17
|
|
PANCHKULA
|
KARNAL
|
14
|
|
JODHPUR
|
BIKANER
|
25
|
|
COIMBATORE
|
-
|
18
|
|
TRICHI
|
SALEM
|
26
|
|
TRIVANDRUM
|
-
|
13
|
|
VISHAKAPATNAM
|
-
|
31
|
|
NASIK
|
-
|
7
|
|
THANE
|
-
|
11
|
|
SHIMLA
|
-
|
14
|
|
INDORE
|
-
|
19
|
|
PANAJI
|
MANGALORE
|
18
|
|
BARODA
|
-
|
15
|
|
SURAT
|
-
|
12
|
|
RAJKOT
|
-
|
15
|
|
JALPAIGURI
|
-
|
15
|
|
GUWAHATI
|
JORHAT
DHUBRI
DIBRUGARH
|
59
|
|
BHAGALPUR
|
-
|
12
|
|
RANCHI
|
DHANBAD
|
26
|
|
HUBLI
|
-
|
16
|
Total
|
41
|
1363
|
The
Operative Aspects of Tax Collection
Direct taxes are
collected through the authorized branches of the Reserve Bank of India, the State Bank of India, 26 other Public Sector
Banks, the Jammu and Kashmir Bank Ltd. and 4 Private Sector Banks backed by
Institutional funds, viz. HDFC Bank, Axis Bank, IDBI Bank and ICICI Bank. The Refund work of Direct Taxes is, however,
handled by the Reserve Bank of India and specified branches of SBI or its
associate Banks where SBI branches are not available. However, the Reserve Bank of India has
decided to exit the business of handling Income Tax Refund Orders. 152 branches of the State Bank of India have been authorised to handle the
work at the centers where Reserve Bank of India has been handling the Refund
work.
The Collections
made by the Central Board of Direct Taxes are accounted for in the following Major Heads:-
0020 Corporation
Tax
0021 Taxes on Income (Income-Tax)
other than Corporation Tax
0023 Hotel Receipt Tax
0024 Interest Tax
0026 Fringe Benefit Tax
0028 Other Taxes on Income and
Expenditure
0031 Estate Duty
0032 Taxes on Wealth
0033 Gift Tax
0034 Securities Transaction Tax
0036 Banking Cash Transaction Tax
The
Major Head wise net collection of Direct Taxes has been reflected in Statement
1.1, Chart 1.1 and 1.2.
EXPENDITURE ACCOUNTS
The Expenditure Accounts of the Central
Board of Direct Taxes present the total picture of receipts and disbursements
under Revenue, Capital & Public Accounts Heads in respect of Income Tax
Department. The Revenue disbursements reflect the total Expenditure (Charged
& Voted). The Revenue Receipts show the total non-tax revenue like interest
receipts, license fee and repayment of loans by the Government servants and so
on as also the tax revenue on account of the 'Central Tax Deducted at Source' from
the salary and contractors' bills. The Capital disbursements show the
expenditure incurred on acquisition of immovable properties under Chapter XXC
of the Income Tax Act, 1961 (MH 4075), of ready built office accommodation (MH 4059),
of ready built flats for Income Tax Employees (MH 4216) and payment of loans to
Government servants (MH 7610). The Capital Receipts show payment of loans paid to Government servants (MH
7610). The recoveries on account of sale
of immovable properties under Chapter XXC of the
Income Tax Act, 1961 are also adjusted against the disbursement under M.H.
4075. Hence, only net effect is shown in the Accounts.
The receipts and disbursements of Public Account Head '8658', `8443' & '8675' are
operated in the Revenue Accounts of the
CBDT. While the Statement of Central Transactions of Revenue
and Expenditure Accounts
of C.B.D.T. are prepared separately, these are put
together in the Finance Accounts. Total receipts and disbursements under Revenue,
Capital & Public Account Heads as per the Finance Accounts of CBDT for 2010-2011
have been shown at Statement 3.1 of Accounts
Highlight, which depicts
balances lying under Debt, Deposit, Suspense
& Remittances Heads (i.e.Loan & Advances and Public Account upto 2010-2011).
A comparative statement for receipts
under Consolidated Fund of India for the last 5 years (2006-2007 to 2010-2011)
is given at Statement 3.2 of Accounts Highlights.
Contingency Fund of India
No
advances were drawn by CBDT from the Contingency Fund of India during 2010-2011.
Preparation of
Monthly Accounts
The Government
Accounting System encompasses various stages
from recording the initial transactions in challans/ vouchers to the
preparation of Annual Accounts. The monthly
accounts are compiled by the Zonal Accounts Offices on the basis of receipt/payment
scrolls received from the Accredited Bank Branch and Field Pay Units (FPUs). The compiled Accounts are
than submitted to the Principal Accounts Office. The Accounts from
all the 24 ZAOs are being received in the Pr. Accounts Office in the Electronic
Format that is
COMPACT. The Principal
Accounts Office
consolidates
the Accounts received from all the ZAOs and sends the same
to the Office of Controller General of Accounts
through E-lekha. The Annual Accounts and Appropriation Accounts are audited and certified by the Comptroller and Auditor General (C&AG) of India and
subsequently placed before the Parliament as a constitutional requirement.
Appropriation Accounts
The Office of
Pr.CCA , prepares the Head-wise Appropriation Accounts in respect of 'Grant No. 42-Direct Taxes'. In this
Grant, two major heads viz., ' 2020- Collection of Taxes on Income and Expenditure' and '2031 –Collection of Taxes on Wealth Tax, Security Transaction Tax and Other Tax are operated below the
Revenue Section. In the Capital Section three Major
Heads viz., '4075- Capital
Outlay on Miscellaneous General Services', '4059- Capital Outlay on Public
Works' and '4216-Capital Outlay on Housing' are operated. While the expenditure
is directly booked under the
Major Heads '2020 ' at the initial
stages, the expenditure under the major head '2031' is allocated by way of
apportionment at the end
of financial year on
the basis of the prescribed formula. (Statement 3.3 & Chart 3.1).
The
Appropriation Accounts for 2010-2011 of Grant No.42- Direct Taxes, show a total
expenditure of Rs. 2697.96 (voted) crore against the sanctioned Final Grant of Rs.2731.84 crore (Voted) under the Revenue Section. Total expenditure
is Rs.1572.28 crores against the Final Grant of Rs 1575.17 crore under the
'Capital Section'. Details of Head-wise budget allocation and expenditure
during 2010-11, may be seen at Statement
3.4 and Chart 3.2 and the Appropriation Accounts for the
year 2010-11 at Statement 3.6
and Chart 3.1.
Collection Charges
Collection
charges appearing in the Accounts indicate the expenditure incurred in collecting various kinds of Direct Taxes. The Income Tax Department collects these taxes from the public. However, disputed
cases are referred to the court of law, either by public or by the Income-Tax Department and collections
are made through court after the finalisation
of such disputed
cases. A part of expenditure incurred on the
adjudication of disputed taxation cases pending in the court are adjusted in
the books of M/o Law and Justice in
their respective Grant under the Major Head ‘2020’ Collection of Taxes on
Income and Expenditure and intimated to the Office of Pr.CCA, CBDT for the
purpose of allocation of collection charges.
The Expenditure is initially booked under the
Minor Head 'Direction and Administration', 'Collection Charges -Income - Tax' and 'Other Expenditure' below
the Major Head '2020'. At the end of financial year, the total
expenditure is proportionately allocated as collection against
various categories viz., Income Tax, Corporation
Tax, Taxes on Wealth Tax, Security Transaction Tax and Other Tax etc.
on the basis of formula assigned by the Central Board of Direct
Taxes. Collection charges relating to Taxes on Wealth Tax, Security Transaction Tax and Other
Tax are then deducted
from the Major Head '2020' and
transferred to the Major Head
'2031'. The formula used for apportionment of collection charges for the year 2010-2011 is
given below:
1. Income
Tax and Corporation Tax 97.50%
2. Taxes on
wealth 0.25%
3. Security
Transaction Tax 0.50%
4. Other
Tax 1.75%
Total 100.00%
Note: The inter-se allocation of Corporation Tax and Income Tax is done in
the ratio of 1: 6.5
Statement of Cash Flow
The statement of cash flow for the year 2010-2011
is placed at Statement No 3.10 The flow indicates that total expenditure is Rs.
4802.71 crores of which Rs.4665.20 crores
is financed from Consolidated Fund of India and Rs 137.51 crores from Public Account. Out of total receipts of Rs. 440967.02
crores Rs.440339.29 crores have been
credited to Consolidated Fund of India and Rs. 627.73
to Public Account.
Other
Vital Account Highlights are available in Statement
No 3.7 to 3.13 and Chart No.3.1, 3.2 and 3.3.
INFORMATION TECHNOLOGY
During the
last one year several important initiatives have been taken in the area of
information Technology in order to enhance the efficiency of the day to day
functioning of the ZAOs. Around six high level application software packages
are presently being used of the HQs and in all the 24 ZAOs across the Country
for monitoring budget execution, maintaining receipt and expenditure accounts.
Bank reconciliation, evaluation of penal interest charged to banks for late
remittances of government receipt etc.
COMPACT The
new version of this software (6.0) launched by the NIC has been installed at
all the ZAOs. All the 24 ZAOs are on live run and the account in respect of
them are being received in the H.Q. office in electronic format. This software
covers all the major accounting functions i.e. pre-check, compilation, GPF,
budget and pension.
It captures
the accounts data from the original source i.e. the bill and this improves the
quality of data used for compilation and consolidation of accounts. The
software also provides functional interfaces among various modules to enhance
data integrity and enforce process validation and this integrates information
through electronic incorporation through Text files.
All area
requiring troubleshooting are clarified and set right from Hqrs. Office. In
case of any problem in Expenditure Account at any of the ZAO, the data base of
the said ZAO is required to be received
at HQ through VPN for sorting out the
problem in consultation with NIC. Vendor Technical Support (VTS) have been
provided to a few ZAOs as per their requirement for this software as well as
for implementation of RAMS, e-lekha etc.
The account
of all the 24 ZAOs consolidated through COMPACT is uploaded in e-lekha for
further transmission to the Controller General of Accounts office for
consolidation of the monthly accounts of the entire Government of India.
The basic
functions of Principal Accounts Office covered by this [software are as
follows:-
Ø Annual Account –
Finance Accounts and Appropriation Accounts
Ø Authorization from
other Ministries and their Reporting/Monitoring
Ø Budget preparation
and Monitoring
Ø Bank
Reconciliation.
NPS A New Pension Scheme was launched by
government of India W.e.f. 01.01.2004 for all fresh recruits who joined the
Central Government on or after 1st Jan 2004. In this regard software
for implementation of New Pension Scheme has been installed and is running
successfully at all the 24 ZAOs of CBDT. For implementation of this scheme all ZAOs,
CDDOs and NCDDOs are required to be registered with NSDL. Thereafter, ZAOs/CDDOs have to upload the
details of monthly contributions deducted from salaries of each employee under
their control. The registrations of all as above with NSDL
have been completed. All ZAOs and CDDOs have
started uploading the details as required .
CDDO2PAO Package The CDDO2PAO package introduced by o/o the
CGA as one of the module of COMPACT for incorporation of expenditure details of
CDDOs in monthly account has been installed in most of the FPUs under the ZAOs.
For successful implementation of this module adequate hardware have been
provided at most of the FPUs and at few FPUs Vendor Technical Support have also
provided. The same is running successfully at most of the FPUs under all the
ZAOs. Earlier, the paid vouchers were received in the ZAO office from the FPUs
who in turn feed the vouchers received from the FPUs manually in the COMPACT
Software. With the implementation of CDDO2PAO package in most of the FPUs the
vouchers are now being fed at the level of the FPU and an electronic copy of
the same is sent to the ZAOs for incorporation in COMPACT.
Multi Protocol Level Virtual Private network MPLS VPN O/o Pr.CCA, CBDT has
set up MPLS VPN to link up all the ZAOs on line to HQs. All software
applications and reference data used by the ZAOs are now developed and
maintained centrally in the HQ IT – Centre. Applications and reference data
updates (such as bank directories, account codes etc) are maintained centrally.
This is a giant step towards improving the quality of information and data
provided to the M/o Finance and O/o CGA. The main advantages of VPN are:
Ø It provides network at all the 24 Zonal Accounts Offices
spread throughout the country and the Office of Principal Chief Controller of
Accounts at Delhi.
Ø It enables real time transfer of data and information
between the ZAOs and the Office of Principal Chief Controller of Accounts.
Ø It also enables the Office of Principal Chief Controller of
Accounts at Delhi to monitor the day to day functioning of the Zonal Accounts
Offices.
Ø It enables the use of centralized application of software
for both Receipt and Expenditure Accounts.
Ø It will enable the centralized processing of payments
through ECS which will result in better cash management on Expenditure side.
Ø On the revenue side it enables the provisioning of Revenue
details, detailed head wise figures of revenue on a daily basis, if required.
Ø It replaces the existing system of use of FAX, Telephone,
E-mail etc. for compiling flash figures.
E-payment: This office had started the process of
implementation of e-payment in all the 24 ZAOs as per directions of O/o
CGA. As per directions of CGA, e-payment
has to be made functional in all the 24 ZAOs w.e.f 31.3.2012. In
this system, after ZAO passes a bill for payment the electronic payment file
will be digitally signed by the ZAO (using a public key and a private key) and
uploaded to the bank for making the approved payment to the beneficiary. Each approved
payment would carry a unique identification number generated by “COMPACT”. The
bank will decrypt the file using the same public key and transfer the funds to
the beneficiary. Details of the purpose of the payment (invoice no. of the
vendor, description of the payment, etc.) will also be transferred
electronically along with electronic fund transfer. The bank will send an
electronic confirmation of the payment to the ZAO. For this purpose, all the
preparatory work such as obtaining digital signatures of the officers,
providing hardware of specific requirement, providing necessary training etc.
have already been initiated.
Some of the benefits which would ensure are:
Ø Reduction in the government liability towards Banking Cash
Transaction Tax.
Ø Increased transparency, reduction in delays and the
elimination of rent seeking activities in the PAOs Office.
Ø Improved cash management.
Ø Reduction in the number of manual business processes
associated with the printing, custody and issue of cheques.
Receipt Accounting Management System
This software is basically meant for receipt accounting at
ZAO level. This office in technical support with NIC has developed this
software; however, a few of the module of this software are still at developing
stage. The software has been developed in such a way that the receipt accounts
may be incorporated in the COMPACT so as to integrate Receipt and Expenditure
Accounts through a single unified package. The salient features of this
software are enumerated as follows:
Ø Automatic reconciliation of receipt and remittance.
Ø Data upload through electronic files (Pre-formatted)
received from banks (i.e. NDMS, DMS etc) apart from manual entry.
Ø Calculation of Penal Interest on delayed remittances.
Ø RAMS is capable of comparing the TIN data with its database.
The RAMS software is now full-fledge operational in all ZAOs
and Monthly Receipt Account is also prepared in RAMS which is then
uploaded in e-lekha for further
submission to CGA office.
(Details on RAMS may
kindly be seen in Receipt Section)
INTERNAL
AUDIT
The Central Board of Direct Taxes is dealing with
matters relating to levy and collection of Direct Taxes and formulation of
policy concerning administrative reforms and changes for the effective
functioning of Income-Tax Department. During 2010-11, its expenditure was Rs.2697.96 Crores. Principal Chief
Controller of Accounts, Central Board of Direct Taxes has been assigned the
duties of conducting Internal Audit of the expenditure incurred by the Offices
of the Income Tax Department spread through out the Country. Besides this the
Internal Audit Parties are also entrusted with the responsibility of conducting
the Audit of the Receiving and Nodal Branches of the Agency Banks. The Duties
on this account have increased in view of the implementation of “On Line Tax Accounting System (OLTAS)”.
24 Internal Audit Parties have been constituted in each ZAO w.e.f. 01.04.2007
to conduct Internal Audit.
FUNCTIONS AND DUTIES
ENTRUSTED TO THE INTERNAL AUDIT :
The Central
Board of Direct Taxes is a statutory authority functioning under the Central
Board of Revenue Act, 1963. The officials of the Board in their ex-officio
capacity also functions, as a Division of the Ministry/dealing with matters
relating to levy and collection of Direct Taxes.
The Principal Chief Controller of Accounts (Pr.CCA)
heads the Accounting Organization of the Central Board Direct Taxes with
Revenue Secretary as the Chief Accounting Authority. At the field level, there are 24 Zonal
Accounts Offices (ZAO) under the jurisdiction of Principal Chief Controller of
Accounts, Central Board of Direct Taxes.
The conducting of internal
audit is one of the main responsibilities allocated to the office of Pr.CCA and
its offices throughout, the country.
The
Objective of Internal Audit:
The objective of conducting Internal Audit is to ensure
compliance of Rules & Regulations & to guide & assists Drawing
& Disbursing Officers in maintaining records in the prescribed format.
Risk
Based Model Audit:
To help the organization accomplish its objective in a
systematic, disciplined manner and to evaluating & improve risk management
process. It has been decided by the higher authorities to perform a Risk Based
Audit, and later this methodology can be used for conducting Internal audit in
future.
I. The
duties of Internal Audit wing includes:
1. Study
of the accounting procedures adopted by the Department with a view to examine
their correctness, adequacy and free from any defects or lacuna.e in the
system;
2. Watch
the implementation of the prescribed procedures and the orders issued from time
to time ;
3. Scrutiny
and check of payment made by the Drawing & Disbursing Officer;
4. Investigation
of important areas and other connected records;
5. Co-ordination
with Controller General of Accounts and Ministry of Finance with regard to
Internal Audit Procedures;
6. Periodical
review of all Accounting Records;
7. Pursuance
& Settlement of objections raised by Statutory Audit Wing i.e. Comptroller
& Auditor General of India and other matters relating to Statutory Audit;
Besides above, the Internal Audit also
undertakes the audit of the banks authorized for collection of Direct Taxes and
their remittance to the Govt. account along with the levy of penal interest on
delayed remittances.
As such the internal audit wing plays
an important role in planning, improvement and adopting of corrective measures
to be taken before the statutory audit.
II.
Arrears,
of audit and steps taken to clear the same.
Out
of 1625 units under the jurisdiction
of this office, 907 units came under
the purview of audit during the financial year 2010-11 on the basis of annual
forecast of IAPs (depending upon periodicity whether Annual, Biennial and
Triennial). There has been a rapid growth in the number of administrative
units, consequent upon restructuring of the Income Tax Department. However on the other hand the number of IAPs
and the associated working strength has reduced. On account of this and other administrative
reasons, 357 units including Banks
could be audited in 2010-11 with a short fall of 550 units. The shortfall in the no. of units audited was due to
acute shortage of staff in the Internal Audit Wing. A Major Step was taken by the Principal Chief
Controller of Accounts, CBDT to clear the arrears by restructuring the Internal Audit. All the 24 ZAOs were directed to
form a Party on rotational basis for Internal Audit of all the DDOs/
Banks/Personal Deposit Account under their jurisdiction.
Further, with the specific aim to
clearly bring out the procedure for booking & reconciliation of refunds
with the Refund Banker & Reserve Bank of India , an audit of Refund Banker was conducted by the O/o Pr.CCA, CBDT.
In addition to above, this office also
conducted Audit Inspection of “Personal
Deposit Account” of 56 offices of Income-Tax department. Audit parties
raised 292 paras of audit observations.
III.
General
conditions of maintenance of Internal Accounts Records :-
The state of maintenance of accounts records has been
found mostly unsatisfactory. The point has been repeatedly emphasized in the
audit reports which are submitted to the concerned administrative heads after
completion of audit of the DDOs under the charge of the respective ZAO`s. Most
of paras are due to poor Knowledge of DDOs in field offices.
IV. Broad reasons responsible for (III) above
and remedial measures, if any taken or proposed to be taken:-
Absence
of sufficient trained staff in the outstation field units and low priority
accorded to accurate accounting of receipts and expenditure seems to be the
principle reasons for (III) above. At
the instance of Internal Audit, essential records which were not being
maintained are now being maintained in some of the offices which have been
audited by IAPs. Following remedial
measures are needed:
1. Raising
the level of DDO:- It has been noted that DDO function is being performed at
very low level such as Inspectors/ Tax Assistants etc. Many a times they are
not sensitive to the criticality of the
role of DDO.
2. Appropriate
training to be imparted to DDO:- DDO function has undergone tremendous change
in the wake of new developments such as NPS
(New Pension Scheme) & ETBAF (Electronic
TDS Book Adjustment Form). In view of
above, it is crucial to impart training to DDOs.
V . Detail of schematic review, if any, made
by the Internal Audit:-
The
audit on the functioning of computer centers and wards for refund orders was
conducted by the Internal Audit Parties and deficiencies noticed e.g.
maintenance of stock register of refunds voucher books, quarterly review of the
enchased vouchers, physical verification of stock taking of voucher books had
been pointed out in the audit report for rectification but the department has
not shown significant improvement.
The Income-Tax Department initiated a
pilot on the concept of “Refund Banker” from 01.10.2007 for the purpose of
implementing the scheme of “Refund Banker” through the State Bank of India.
Further, with the specific aim to clearly
bring out the procedure for booking & reconciliation of refunds with the
Refund Banker & Reserve Bank of India, an audit of “Refund Banker” i.e. State Bank of India, Cash Management
Product Centre, Mumbai for two years i.e. 2008-09 &2009-10 was
conducted during the period from 31.05.2010 to 11.06.2010. During the Audit, it
was found that Government had to shell out more Rs. 5.34 Crores in addition to
agency commission charged by the Bank (paid by RBI) and Service Charges,
charged by Refund Bankers (paid by ITD) as per the MoU. This amount pertains to
the period when the Refund Banker scheme was implemented only in 14 cities and
till now, the scheme has implemented in all over India. It may result in
significant increase in the cost of refund, which is to be borne by the
Government.
Audit
observations on performance of Refund Banker i.e. State Bank of India are listed below:-
·
Audit Report has pointed
out that the percentage of returned refunds (both number of returned refunds
and amount of returned refunds) has been on the rise. Product-wise analysis shows that paper
refunds & NECS have been the major product categories contributing to
returned refunds;
·
It has also been brought
out in Audit Report that the accounting procedure for the pilot of Refund
Banker Scheme which is being circulated to all ZAOs , is also required to be
circulated to the CPM branch, Mumbai which is dealing with the Refund Banker
Scheme, so that the refunds could be accounted timely and accurately.
·
Audit
Observation regarding various important issues as well as several performance
& efficiency related issues on part
of Director General of Income
Tax(Systems) are listed below:-
·
Performance and Efficiency
implications of changes made in MoU;
·
Cost implications of the
changes/amendments made in MoU;
·
Cost effectiveness of the
Refund Banker Scheme to Government of India;
·
Wrong data feeding by the
Income Tax Department;
·
Need for regular meetings
of High Level Committee constituted for implementation of pilot of Refund Banker Scheme;
·
The important changes
required with regard to performance and economy parameters in the MoU signed on
25th September 2008 over the earlier entered on 4th April
2007 between the Refund Banker & DIT(System);
·
Corrective actions as
pointed out in the Audit Report were required to be taken by the Income Tax
Department so that the Refund Banker Scheme could be implemented in most
effective and efficient manner.
Also,
an Internal Audit Inspection for the period 2004-05 to 2009-10 in r/o O/o the Additional Commissioner of Income
Tax, Range-I, Gorakhpur was conducted by the Internal Audit Party, ZAO, CBDT, Allahabad
with a specific aim of checking the Refund Cheques belonging to the period of
fraudulent payment of Refund of Income-Tax made by ACIT Gorakhpur. There has
been fraudulent payment of
Income-Tax amounting to Rs.35,25,600/=
in the O/o Additional Commissioner of Income-Tax, Range-I, Gorakhpur. This happened due to following shortcomings on part of DDO, as
observed by the audit party:-
1. No
basic records such as “Refund Register” (wherein daily refund payment
details e. g. Cheque Number, date & amount etc. are
required to be mentioned) were found maintained in O/o the
ACIT, Range-I, Gorakhpur, in absence of which Rrconciliation between actual payments
made by the bank and list of Refund cheques could not be done in order to check
the genuineness of the payment.
2. Besides,
the non-maintenance of important records, it was noticed by audit party that
even the basic procedures/precautions to avoid fraudulent payments were not
observed by the DDO.
3. The
fraudulent payment of Rs.32,25,600/= was made due to copying of signature of an
authorized officer, Sh. A. P. Mani, Income Tax Officer who was posted in the
ward 1(1) for the period August 2005 to
November 2008. The cheques, with
signatures of Sh. A. P. Mani beyond this period and with stamps of different
wards, were encashed by the bank.
4. It
has been observed that besides the fact that basic procedures to avoid
fraudulent use of Income-Tax Refund Cheques were not observed by the DDO,
the bank also did not observe the basic
security measures such as:-
(1)
To
check the period of posting of officials whose signatures have been authorized
to issues ITROs –
In the event of any change in the incumbency
of the signing official on account of transfer to other
ward/retirement/termination of service/ expiry etc. duly attested signatures of
relieving official are furnished to the bank, and the signatures of previous
incumbent are required to be deleted from the record. The prescribed procedures
of deleting the name of previous incumbent was not followed by the bank
strictly, resulting in above irregularity.
(2) To check the serial numbers of Cheque Books
to be used in different wards-
The serial numbers of ITRO Books allotted to
each ward/Circle and the distinct number of foils in each ITRO books is
required to be intimated to the Bank by the DDO. It has been found that in case
of fraudulent cheques, stamps of different wards below the signatures of Sh. A.
P. Mani were affixed.
(3)
Not verifying high value Refund Payments with concerned authorized signatories
–
Cross verification of the high value Income Tax Refund Order Advice, on
receipt, is supposed to be done by the Bank with the concerned Income Tax
Officer for its genuineness, and the fact is recorded on the ITRO Advice. But the same was not followed by the bank.
Economy
as suggested in “Public Deposit Account”
During the conduction of “P D Account Audit” of various offices
of Income Tax department, it has been observed by the audit parties that the
money seized by DIT(Investigation) goes through 3 bank accounts before it finally
gets credited to Consolidated Fund of India. As per new system, in all the
search & seizure cases, the money
seized during raids is transferred to Central Circle I, II and III. Subsequently, these are then transferred from
CIT (Central) to the concerned CIT under whose jurisdiction the assessee falls. This leads to enormous delay in credit of
funds to the Consolidated Fund of India. In certain cases, it has taken more than 2
years . This multi-layered process
results in undue delay in remittance of money seized through Search &
Seizure operations to Government account.
Part-II
LIST OF MAJOR
IRREGULARITIES IN THE YEAR 2010-11
1. Cases of
Non Recovery of Govt. dues from Central Govt.
Dept./State Govt./Govt. Bodies/Pvt. Parties.
|
|||
SL. No.
|
Name
of Office
|
Amount
(in
Rupees)
|
Brief
Particulars
|
1.
|
Corporation Bank, Nodal Br. Kol.,
(I.R. No.1)
|
4,72,302
|
Non-payment of penal interest for
delayed remittance of CBDT Receipts.
|
2
|
CBI Nodal Br. Kol (I.R. No. 4)
|
3,20,409
|
-DO-
|
3
|
Allahabad Bank, Nodal Br. Kol(I.R.
No. 17)
|
7,61,505
|
-DO-
|
4
|
S.B. Travancore, Nodal Br. Kol (I.R.
No.28)
|
1,11,123
|
-DO-
|
5
|
U.B.I. Nodal Br. Kol. (I.R. No. 30)
|
32,69,385
|
-DO-
|
6
|
DDO, O/o CIT-XIV, Kol. (I.R. No. 14)
|
92,701
|
Less deduction of Income Tax in
respect of Sh. Virendra Singh, CIT-XIV, Kol
|
7
|
State Bank of India
Ahmedabad
|
87 laks
|
Penal interest pending since long time
|
8
|
State Bank of India
Ahmedabad
|
85,649
|
Delayed Remittance
|
9
|
Corporation Bank & two nodal
branches
Ahmedabad
|
2,76,000
|
Penal interest pending since long time
|
TOTAL
|
1,40,89,074
|
2. Cases of Overpayments
|
|||
SL.
No.
|
Name
of Office
|
Amount
(in
Rupees)
|
Brief
Particulars
|
1
|
Addl.
CIT, Ratlam
|
56,795
|
Excess
Payment in LTC claim of Sh. Manish Jain
|
2
|
CIT
Bhopal
|
77,552
|
Excess
payment in LTC Claim of Sh. Anadi Dixit
|
3
|
CIT
(A-1) Bhopal
|
50,000
|
Ommission
of debit in the ledger of GPF group “D”
|
4
|
Addl.
CIT Bhilai
|
73,000
|
Ommission
of debit in the ledger of GPF group “D”
|
5
|
ITO,
Betul
|
50,000
|
Ommission
of debit in the ledger of GPF group “D”
|
6
|
ITO,
Jagdalpur
|
74,000
|
Ommission
of debit in the ledger of GPF group “D”
|
7
|
Addl.
CIT R-1 Raipur
|
1,15,000
|
Ommission
of debit in the ledger of GPF group “D”
|
8
|
DDO/ITO,
New Alipurduar. (I.R. No.8)
|
95,000
|
Overpayment
of pay & allowances in respect of official due to wrong pay fixation.
|
9
|
AO/DDO,CIT
(A)-I Kol (I.R. No.42)
|
1,72,970
|
Excess
drawal of T.A. plus D.A. from time to time during study leave in respect of
Smt. Smita Srivastava, CIT(A)-I, Kol
|
10
|
AO/DDO,CIT
(A)-I Kol (I.R. No.42)
|
50,211
|
Excess
drawal of HRA in respect of Smt. Smita Srivastava CIT (A)-I, Kol.
|
11
|
AO/DDO,O/o
Addl. CIT
Navasari
|
1,00,000
|
Sh.
J.S. Chavda AO/DDO was imposed minor penalty in 1986 for withholding
increment for three years with cumulative effect. Later on he has been allowed those three increments.
|
12
|
DDO,
Audit Rg-I
|
1,59,366
|
Excess
Drawal of Pay and Allowances
|
13
|
-DO-
|
1,93,000
|
Non
posting of GPF advance/withdrawals
|
14
|
-DO-
|
98,388
|
Excess
Leave Salary paid
|
15
|
-DO-
|
1,39,348
|
Over
payment of pay and allowance in respect of Shri Ramchadra M Balmiki, Peon
(absconding)
|
16
|
DDO,
Range-16(1)
|
2,44,805
|
Non
posting of GPF advance/withdrawals
|
17
|
-DO-
|
2,07,200
|
Excess
leave salary Drawn to the turn of Rs. 2,07,200
|
18
|
-DO-
|
53,344
|
Non
recovery of pay and Allowances for the period treated as Dies-Non.
|
19
|
DDO,
MSTU
|
77,257
|
Overpayment
of Pay and Allowances
|
20
|
-DO-
|
67,962
|
Excess
Leave Salary
|
21
|
DDO,DIT
(INV)
|
1,40,991
|
Excess
Drawal of Pay and Allowances
|
22
|
-DO-
|
3,37,230
|
HRA
to be disallowed in respect of Shri Bhupendra K.Singh, ADIT
|
23
|
-DO-
|
1,93,924
|
Unauthorized
Absence in respect of Sh. V.R. Pawar, DB
|
24
|
-DO-
|
52,120
|
Less
recovery of CGHS
|
25
|
-DO-
|
60,212
|
Overpayment
of Pay and Allowances due to unauthorized absence
|
26
|
DDO,
Range-22(1)
|
68,833
|
Excess
Drawal of Pay and Allowances
|
27
|
-DO-
|
85,895
|
Overpayment
of salary in respect of S.R. Javir, TA
|
28
|
-DO-
|
92,259
|
Overpayment
of Salary in respect of Swapna Subodh
|
29
|
-DO-
|
90,228
|
Recovery
of overpaid leave salary in respect of four officials.
|
30
|
DDO,DIT
(IT)
|
3,13,060
|
Recovery
arising due to reversion of Sh. R.S. Bhaduria from sr. TA to TA
|
31
|
-DO-
|
1,90,885
|
Recovery
of special allowance in respect of six Gr. A officers
|
32
|
DDORange-12
(1)
|
89,785
|
Excess
Drawal of Pay and Allowances in respect of 11 officials.
|
33
|
-DO-
|
90,230
|
Less
recovery of CGHS in respect of 104 officials
|
34
|
DDO,CIT-II
PUNE
|
56,908
|
Over
payment of pay in respect of Sh. B.N. Tribhuwan, ITO
|
35.
|
AO/DDO,
Navsari
|
50,000
|
Pay
fixation – over payment
|
TOTAL
|
40,67,758
|
3. Idle Machinery and Surplus
Stores.
|
||||
SL. No.
|
Name of Office
|
Amount
(in Rupees)
|
Brief Particulars
|
|
1
|
JCIT,
Korba
|
1,92,400
|
Five
ACs were purchased in addition to the available 5 for the same rooms.
|
|
TOTAL
|
1,92,400
|
|||
4.
Loss/Infructuous Expenditure.
|
||||
SL. No.
|
Name of Office
|
Amount
(in Rupees)
|
Brief Particulars
|
|
1
|
CIT
Ujjain
|
63,567
|
Loss
due to improper agreement of hired vehicle
|
|
TOTAL
|
63,567
|
|||
5. Irregular Expenditure
|
|||
SL. No.
|
Name of Office
|
Amount
(in Rupees)
|
Brief Particulars
|
1.
|
ITO,
Shivpuri
|
67,498
|
Excess
expenditure against budget estimate
|
2.
|
ITO
Balaghat
|
3,00,000
|
Approval
of HOD i.e. CIT not taken on file for hiring vehicle
|
3.
|
CIT
(Audit) Bhopal
|
2,69,041
|
Expenditure
made out of wrong head for non availability of fund
|
4.
|
DDO,O/o
the Addl. CIT, R-I & 2 Midnapore. (I.R.No.6)
|
8,86,000
|
Irregular
expenditure on hiring of vehicles during 2007-08, 2008-09,2009-10
|
5.
|
DDO/ITO,O/o
the DCIT, Port Blair, A & N (I.R. No.7)
|
2,88,199
|
Irregular
expenditure on visit of Parliamentary Committee which was required to be
borne from grants of Secretariat of Lok Sabha and Rajva Sabha.
|
6.
|
DDO,
R-31, Kol (I.R. No.32)
|
2,12,718
|
Expenditure
incurred on civil works without obtaining sanction order of the competent
authority.
|
7.
|
DDO,
Safema, Mumbai
|
4,19,100
|
Expenditure
incurred for repairs and renovation for hired office
|
8.
|
2,66,195
|
Outsourcing
of Data Entry Work
|
|
9.
|
Addl.
CIT, Range-I, Sambalpur
|
1,45,198
|
Case
of irregular expenditure of hiring vehicles
|
10.
|
DDO,
Range-22(1), Mumbai
|
8,77,561
|
GFR
Rules not followed for the work of hiring of vehicles.
|
11.
|
ACIT,
Gandhi Dham, Kutch, Gujarat
|
88,374
|
Shortcoming
in sub-vouchers/duplicate vouchers.
|
TOTAL
|
38,19,884
|
6. Irregular Purchase
|
|||
SL. No.
|
Name of Office
|
Amount
(in Rupees)
|
Brief Particulars
|
1.
|
JCIT,
Korba
|
5,70,125
|
Redundant
procurement of store to exhaust budget to the tune of Rs.5,70,125/- The
procurement has been made pushing aside the remarks of JCIT to put up the
proposal to the purchase committee.
|
2.
|
CIT(Audit),
Bhopal
|
1,92,920
|
Limited
Tender not invited, purchase splitted to avoid codal formalities
|
3.
|
DDO,R-25,
Kol. (I.R. No.34)
|
1,70,000
|
Violation
of provisions in GFR in procurement of
goods
|
4.
|
DDO,
CIT (ITAT), Kol. (I.R. No.41)
|
2,89,323
|
-DO-
|
5.
|
CIT
(Audit)
Bhubneswar
|
2,26,213
|
Case
of Irregular purchase private publication.
|
TOTAL
|
14,48,581
|
7. Cases
of Non-adjustment of Advances
|
||||
SL. No.
|
Name of Office
|
Amount
(in Rupees)
|
Brief Particulars
|
|
1
|
CCIT,
Bhopal
|
97,000
|
Temporary
advance
|
|
2
|
CCIT,
Bhopal
|
2,43,250
|
LTC
Advance
|
|
3
|
CCIT,
Bhopal
|
1,80,000
|
LTC
Advance
|
|
4
|
ADIT,
Bhopal
|
1,80,000
|
LTC
Advance
|
|
5
|
ITO
(Admn) Gwalior
|
2,00,000
(app.)
|
TA/LTC
Advance
|
|
6
|
Addl.
CIT R-1 Raipur
|
89,975
|
TA/LTC
Advance
|
|
7
|
DDO,
R-11, O/o the CIT-IV, Kol. (I.R. No.5)
|
86,535
|
Non-adjustment
of LTC Adv. For the financial 2008-09 & 2009-10
|
|
8
|
DDO,
R-16, O/o CIT, Kol. (I.R. No. 11)
|
2,16,270
|
Non-adjustment
of LTC Adv. For the financial 2005-06, 2006-07 & 2007-08
|
|
9
|
DDO,
DIT (INV), Mumbai
|
2,59,000
|
Non
posting of GPF advance/ withdrawals in r/o Gr. ‘D’ Staff
|
|
10
|
-DO-
|
62,136
|
Unadjusted
Medical Advance
|
|
11
|
DDO,
Range-22 (1)
|
2,11,000
|
Non
posting of GPF advance/ withdrawals in r/o Gr. ‘D’ Staff
|
|
12
|
DGIT(Intelligence)
New Delhi
|
4,00,000
|
Advance
of Rs.4,00,00/- for search operations drawn by Sh. Arun kumar Gujar, Jt.
Director, but final adjustment bill not submitted till the date of audit.
|
|
13.
|
CIT-I,
Rajkot, Gujarat
|
68,000
|
Non-adjustment
of LTC advance.
|
|
TOTAL
|
22,93,166
|
|||
8. Cases of Blocking of Government
Money
|
|||
SL. No.
|
Name of Office
|
Amount
(in Rupees)
|
Brief Particulars
|
1
|
AO/DDO,
App. Authority & Val Cell, Kol (I.R. No.39)
|
8.59 Crores
|
Outstanding
Acquisition of Properties but not yer
disposed since more than decades.
|
2
|
CIT,
Kol-I, Kol (Para No.2, I.R. No. 21) P.D. Account No5055302013
|
16,32,988
|
Seized
cash lying in P.D. Account for more than decades without any valid reasons in
violation of Rule 192 of R & P Rules
|
3
|
CIT,
Kol-III, Kol, (Para No.3 I.R. No.22), P.D. accounts 5055302037
|
27,11,366
|
-DO-
|
4
|
CIT,
Kol-IV, Kol (Para No.2, I.R. No. 23) P.D. Account No5055302044
|
46,39,812
|
-DO-
|
5
|
CIT,
Kol-V, Kol (Para No.2, I.R. No. 24) P.D. Account No5055302051
|
16,82,386
|
-DO-
|
6
|
CIT,
Kol-VI, Kol (Para No.2, I.R. No. 25) P.D. Account No5055302068
|
15,21,934
|
-DO-
|
7
|
CIT,
Kol-VII, Kol (Para No.2, I.R. No. 26) P.D. Account No5055302075
|
10,16,597
|
-DO-
|
8
|
CIT,
Kol-VIII, Kol (Para No.2, I.R. No. 27) P.D. Account No5055302082
|
51,52,816
|
-DO-
|
9
|
CIT,
Kol-IX, Kol (Para No.2, I.R. No. 35) P.D. Account No5055302099
|
84,98,537
|
-DO-
|
10
|
CIT,
Kol-I, Kol (Para No.2, I.R. No. 37) P.D. Account No5055302116
|
39,29,514
|
-DO-
|
11
|
DDO,
Safema, Mumbai
|
20,83,812
|
Bank
Interest not deposited into Govt accounts
|
12
|
-DO-
|
2,74,15,900
|
Total
value of Unsold Properties
|
13
|
-DO-
|
6,22,07,500
|
Delay
in depositing the sales proceeds of forfeited properties into Govt. Account
|
14.
|
ACIT,
Gandhi Dham, Kutch, Gujarat
|
71,842
|
Challans
have not been entered in the Cash Book.
|
TOTAL
|
20,84,65,004
|
9. Non-accountal of Costly Stores/Government
Money
|
|||
SL. No.
|
Name of Office
|
Amount
(in Rupees)
|
Brief Particulars
|
1
|
ADIT,
Bhopal
|
1,97,036
|
Non
Accountal of Costly stores in dead stock
|
2
|
JCIT,
Korba
|
7,51,422
|
Stores
nor been taken into account.
|
3
|
ITO,
Itarsi
|
Stock register is not being
maintained
|
|
4.
|
Addl.
CIT, Range-1, Raipur
|
8,94,701
|
Stock
not taken into account.
|
TOTAL
|
18,43,159
|
10. Any other Irregularities of Special
Nature.
|
|||
SL. No.
|
Name of Office
|
Amount
(in Rupees)
|
Brief Particulars
|
1
|
DDO,
R-10, O/o CIT-IV, Kol (I.R. No.3)
|
(-) 6.05 Lakhs
|
Difference
of expenditure figures between ZAO, CBDT, Kol and DDO
|
2
|
DDO,O/o
Addl. CIT, R-1 & 2, Midnapore (I.R. No.6)
|
14.10 lakhs
|
-DO-
|
3
|
DDO/ITO,
New Alipurduar (I.R. No. 8)
|
0.95 Lakhs
|
-DO-
|
4
|
DDO/ITO,
O/o DCIT,Port Blair, A& N (I.R. No. 7)
|
14.30 Lakhs
|
-DO-
|
5
|
DDO,O/o
CIT (CO Systems), Kol. (I.R. No. 10)
|
98.99 Lakhs
|
-DO-
|
6.
|
DDO,
O/o CIT-XIV, Kol. (I.R. No. 14)
|
3.31 Crores
|
-DO-
|
7.
|
Allhabad
Bank, Nodal Br, Kol (I.R. No.17)
|
1.33 Crores
|
Difference
under PSB Suspense (Rev.)
|
8.
|
Bank
of India, Nodal Br. Kol (I.R. No. 13)
|
(-) 15.02 Crores
|
-DO-
|
9.
|
AO/DDO,
Ward-I Coochbehar (I.R. No.15)
|
0.62 lakhs
|
Difference
of expenditure figures between ZAO, CBDT, Kol and DDO
|
10.
|
DDO,
O/o DIT (Vig) Kol. (I.R. No. 18)
|
10.09 Lakhs
|
-DO-
|
11.
|
DDO,
R-54, O/o CIT-XIX, Kol (I.R. No. 19)
|
35.19 Lakhs
|
-DO-
|
12.
|
CIT,
Kol-IV, Kol, PD. Account (I.R. No.23)
|
0.58 Lakhs
|
Difference
in closing balance between ZAO, CBDT,
Kol and CIT, Kol-IV, Kol as on 31.03.2010
|
13.
|
CIT,
Kol-VI, Kol, P.D. Account (I.R. No. 27)
|
24.80 Lakhs
|
Difference
in closing balance between ZAO, CBDT,
Kol and CIT, Kol-IV, Kol as on 31.03.2010
|
14.
|
DDO,
R-31, Kol (I.R. No.32)
|
30.55 Lakhs
|
Difference
of expenditure figures between ZAO, CBDT, Kol and DDO
|
15.
|
CIT,
Kol-IX, Kol P.D. Account (I.R. No.35)
|
7.07 Lakhs
|
Difference
in closing balance between ZAO, CBDT,
Kol and CIT, Kol-IX, Kol as on 31.03.2010
|
16.
|
DDO,
R-25, Kol (I.R.No.34)
|
30.17 Lakhs
|
Difference
of expenditure figures between ZAO, CBDT, Kol and DDO
|
17.
|
Vijaya
Bank Nodal Branch Kolkata (I.R. No.36)
|
3.67 Lakhs
|
Difference
under PSB Suspense (Rev.)
|
18
|
CIT,
Kol-XI, Kol P.D. Account (I.R. No 37)
|
6.63 Lakhs
35.50 Lakhs
|
Difference in closing balance between ZAO, CBDT, Kol and CIT, Kol-XI,
Kol. as on 31.03.2010
Difference
in closing balance between Bank Pass Book and accounts maintained by CIT,
Kol-XI, Kol.
|
19
|
DDO,
CIT 9 ITAT, Kolkata
(I. R. No. 41)
|
13.18 Lakhs
|
Difference
of expenditure figure between ZAO, CBDT, Kol and DDO
|
20
|
Allahabad
Bank, Mumbai
|
4,15,728
|
Delay
in remittance of amount Rs. 340177831/- inviting penal interes
|
21
|
-DO-
|
7,99,066
|
Non-Payment
of penal interest
|
22
|
P.D.
Account of DIT (INV)-II
|
4,36,16,600
|
Delay
in remittance to the Bank of seized amount
|
23
|
P.D.
Account of CIT-2
|
--------
|
Non-maintenance
of Cash Book and Ledger
|
24
|
-DO-
|
--------
|
Missing
cheque books and counterfoils
|
25
|
DDO,DIT
(IT), Mumbai
|
--------
|
No
action taken against unauthorized absence for over five years in respect of
three officials
|
26
|
DDO,DTRTI,
Mumbai
|
--------
|
Sh.
G.S. Tambe was absent from duties since 1995. He was allowed to join duties
on 11.11.2005 after a lapse of ten years without initiating action against
the official under rule 11 of CCA Rules with Rule 32 & Rule 12 of Leave
Rules which states that no government servant shall be granted leave of any
kind for a continuous period exceeding five years
|
27
|
Addl.
CIT, Range-1, Allahabad
|
2,74,287
|
Excess
credit under GPF Gr. ‘D’
|
28.
|
ACIT-I,
Rajkot, Gujarat
|
19,80,000
|
Difference
between ACIT and ZAO’s figure.
|
29.
|
DDO,
DIT(IT), Mumbai
|
10,40,737
|
Purchase
of office furniture without adhering to GFR Rules.
|
TOTAL
|
(-)2,36,39,582
|
ZONE-WISE DISTRIBUTION OF AUTHORISED BRANCHES | |||||
Sl No. | NAME OF THE ZAO | R.B.I. | STATE BANK OF INDIA | OTHER PSBS INCLUDING PRIVATE SECTOR BANK | TOTAL NO. OF BANK BRANCHES |
1 | AGRA | 66 | 71 | 137 | |
2 | AHMEDABAD | 1 | 355 | 632 | 988 |
3 | ALLAHABAD | 87 | 107 | 194 | |
4 | AMRITSAR | 59 | 191 | 250 | |
5 | BANGALORE | 1 | 187 | 1031 | 1219 |
6 | BHOPAL | 351 | 330 | 681 | |
7 | BHUBANESWAR | 1 | 176 | 119 | 296 |
8 | CALCUTTA | 1 | 267 | 625 | 893 |
9 | CHENNAI | 1 | 307 | 875 | 1183 |
10 | COCHIN | 1 | 63 | 414 | 478 |
11 | DELHI | 1 | 146 | 872 | 1019 |
12 | HYDERABAD | 1 | 311 | 787 | 1099 |
13 | JAIPUR | 1 | 77 | 420 | 498 |
14 | JALLANDHAR | 65 | 285 | 350 | |
15 | KANPUR | 1 | 77 | 63 | 141 |
16 | LUCKNOW | 109 | 188 | 297 | |
17 | MEERUT | 101 | 207 | 308 | |
18 | MUMBAI | 2 | 112 | 849 | 963 |
19 | NAGPUR | 1 | 63 | 103 | 167 |
20 | PATIALA | 67 | 323 | 390 | |
21 | PATNA | 1 | 210 | 179 | 390 |
22 | PUNE | 207 | 533 | 740 | |
23 | ROHTAK | 73 | 231 | 304 | |
24 | SHILLONG | 1 | 117 | 94 | 212 |
TOTAL | 15 | 3653 | 9529 | 13197 |
RECEIPT
ACCOUNTS AND MONITORING OF RECEIPTS
INTRODUCTION
The Central Board of Direct Taxes is a revenue oriented department. Hence, separate ‘Accounts’ for Tax Receipts
are maintained by the Reserve Bank of India, Zonal Accounts Offices and Office
of Principal Chief Controller of Accounts.
‘Receipt Accounts’ comprise Direct Tax collected/refunded through agency
Banks and transactions routed through ‘Personal Deposit Accounts’ operated by Income
Tax Department for amounts seized from tax evaders during search and seizure
operations.
The Central Board of
Direct Taxes (CBDT) is responsible for administering various direct taxes
through the Commissioners of Income-tax located in different parts of the
country. The Commissioners of Income-tax
are entrusted with the task of collection as well as refund of Income-tax and
Corporation Tax, etc. under the Income-Tax Act, 1961.
The Principal Chief Controller of
Accounts is the apex authority
of the accounting organisation of the Central Board of Direct Taxes. Under the Departmentalised set up, the
Pr.CCA, CBDT has been assigned the functions relating to accounting of all
receipts and refunds pertaining to the Direct Taxes. The Pr.CCA sits at New Delhi and operates through
Zonal Accounts Offices (ZAOs) across the country. Presently there are 24 ZAOs (in operation for ‘Receipt Accounts’) located at various
places.
The various types of direct taxes
collected by the Income Tax Department are classified under the following Major
Heads:
Corporation
Tax (C.T) 0020-Corporation Tax
Income Tax
(I.T.) 0021-Taxes on Income other than
Corporation Tax
Wealth Tax
(W.T.) 0032-Taxes on Wealth
Gift Tax
(G.T.) 0033-Gift Tax
Fringe
Benefit Tax * 0026
Banking
Cash Transaction Tax # 0036
* Fringe Benefit Tax has been
abolished w.e.f. assessment year 2010-11.
# Banking Cash Transaction Tax has
been withdrawn w.e.f. 1st April 2009.
Since the departmentalization of accounts, a lot of changes have occurred
in the procedures regulating the Direct Tax collection. We have come a long way from the era of
Treasuries and Sub-Treasuries to the state of the art technology. The latest development in the field of
collection of Direct Taxes is the implementation of “Online Tax Accounting
System (OLTAS)”.
ONLINE
TAX ACCOUNTING SYSTEM (OLTAS)
The
Government in September 2002 constituted a “Task Force on Direct Taxes” with
the objective to rationalize and simplify the Direct Tax laws and redesign
procedures to bring them at par with the best International practices so as to
encourage voluntary compliance and reduce compliance cost. The Task force,
under the Chairmanship of Dr. Vijay L. Kelkar who was the Advisor to the Minister
of Finance and Company Affairs, submitted its recommendations to the Government
in December 2002. It was in accordance
with these recommendations that the Tax Information Network (TIN ) managed by National Security Depository
Limited (NSDL) was established and the Online Tax Accounting System (OLTAS) saw
the light of the day with effect from 1st June 2004.
Main
features of OLTAS
The
cumbersome process of filling of four copies of challans has been replaced by a
Single Copy Challan. Prior to implementation of OLTAS, the
taxpayers used to make payment of Direct Taxes through the ‘Receiving Branches’
authorised by Office of the Principal Chief Controller of Accounts and Reserve
Bank of India by filling up four copies of challan. Two copies were retained by
the Bank and other two copies duly stamped returned to the taxpayer (one to be
kept as office copy and the other to be attached with annual return of Income
Tax). The Nodal Branch used to consolidate the transactions of Receiving Branches
linked to it and prepare two sets of scrolls and challans and transmit the same
to Zonal Accounts Office and Regional Computer Center for accounting. In the post-OLTAS scenario the ZAOs have
become the sole repository of Single Copy Challan received in their office from
the Nodal Branches of authorised Banks.
The Regional Computer Centre of the Income Tax Department gets the
challan data through the Tax Information Network hosted by National Security
and Depositories Limited. Other features
and advantages of the OLTAS are as under:-
v Nodal
branches do not have to wait for physical challans from receiving branches for
preparation of Daily Main Scrolls. The Scrolls are prepared on the basis of
challan data loaded to TIN by
receiving branches.
v Instead
of sending physical challan/scrolls to Regional Computer Centers of Income Tax
Department, the receiving branches of Banks Upload challan data to the Tax
Information Network (TIN ).
v Faster
remittance of tax collection to CAS ,
RBI, Nagpur.
v The
taxpayers need not retain two copies of challans with them as the requirement
of enclosing copy of challan with Annual Income Tax Return, as proof of payment
of tax, has been done away with.
v Income
Tax Department affords credit to the taxpayer on the basis of information
available on TIN.
v The
taxpayers have been provided the facility of paying the Direct Taxes through
Internet from the comfort of their houses, workplaces or from any convenient
internet access point.
v Permanent
record of Challan Identification Number (CIN )
in the Bank Statement / Passbook, if payment made through the mode of Internet.
v Zonal
Accounts Offices account for the tax collection on the basis of the single copy
challan/scrolls submitted by the Nodal branches of the Agency Banks.
v Levy
of Penal Interest if tax collection does not reach Government Account within
T+3 days. However, this was held in
abeyance till 31st of March 2005 with the modification that the
remittance period would be T+3 working days for the Public Sector
Banks. As the transactions are closed at
the RBI at 1 P.M., it has now been decided by the Controller General of
Accounts that the permissible period indicated would not include the Put
Through Date at RBI for calculating the T+3 working days in respect of Public
Sector Banks only. In respect of e-payment of Government transactions, RBI in
consultation with O/o CGA has decided that the remittance in respect of private
sector banks for all Govt. transactions including EASIEST & OLTAS receipts through e-payment will be T+1
working days (including put through date) w.e.f. August 1, 2008. In case of Public Sector Banks the remittance
period will be T+2 working days (excluding put through date) w.e.f. August 1,
2008, T+1 working day (excluding put through date) w.e.f. January 1, 2009 and
T+1 working day (including put through date) w.e.f. 01.11.2010.
v Regional
Computer Centers submit the Detailed Accounts to the Zonal Accounts Offices on
the basis of data available on the TIN.
v Zonal
Accounts Offices have been provided the facility to access the NSDL site
through which they are able to view the challans/scrolls uploaded to TIN and take up the matter with Banks/Income Tax
Department, if the data loaded to TIN
does not match with the tax collection
reported to them through physical challans/scrolls.
v All
the ZAOs have been allotted e-mail IDs through NIC and Reserve Bank of India
has been requested to issue instructions to all Agency Banks to forward soft
copy of Daily Main Scroll to ZAOs to facilitate them to compile Flash Figures
of direct tax collection without waiting for physical challan/scrolls from the
Banks. Office of Controller General of Accounts has been approached to allow
accounting of direct tax collection on the basis of soft copy of scroll as the
same will be replica of the hard copy of scrolls received with challans.
v Reserve
Bank of India has allowed access to their web site through which the ZAOs can
view the amount of put-through to Government Account by Agency Banks on day to day basis without waiting for
‘Monthly Closing Statement’ from RBI.
v It
has been decided in consultation with the Income Tax Department to introduce
Computer Generated receipts for challans payment of OLTAS transactions, w.e.f.
June 1, 2008 with the following features:-
·
Maker Checker System of Data Entry
·
Software Alert
·
Software Validation
·
Quality Assurance at Bank level
·
Re-upload of rejected file
REFUND
OF TAXES
Income Tax Refund Orders are payable at the Reserve
Bank of India, State Bank of India and the associate Banks of the SBI where SBI
Branch is not available. However,
the Reserve Bank of India has decided to exit the business of handling Income
Tax Refund Orders. There are 722 refund
bank branches of State Bank of India and its associates.
On receipt of Advice of Refund from the
Income Tax Department (Refunds for Rs. 10,000/- and above) the authorised bank
branches make payment of the Refund Order presented by the assessee. For Refunds below Rs.10,000/- Refund Advice
is presented by the assessee along with the Refund Order. Subsequently, RBI reimburses the refund
amount to the Banks. The Reserve Bank of
India, on its part, sends ‘Monthly Closing Statements’ of Refunds incorporating
these transactions to the Banks (Link Cells at Nagpur and GAD, Mumbai in
respect of SBI), and the ZAOs for accounting and reconciliation of
figures.
RECENT
INITIATIVES ON THE TAX COLLECTION FRONT
PAYMENT
OF DIRECT TAXES THROUGH INTERNET
A system of payment of
Direct Taxes by the assessees over ‘Internet’ under the On-Line Tax Accounting
System (OLTAS) was initiated and put in place in ‘2005. The Technical Committee
constituted by the High Powered Committee on OLTAS to examine the issue of
Direct Tax payments being made over the Internet had since finalized a Concept
Paper on Electronic Payment of Taxes through Banks having Internet Banking
facilities. As per the Concept Paper,
National Securities and Depositories Limited (NSDL) will provide the data
screen for entry of challan details and validate the same against the PAN/TAN
database, codes of Major Heads/Minor Heads, types of payment, etc. NSDL will also provide a secured link
between its website and the website of the participating Bank. Accordingly, NSDL had informed all the Banks
participating in OLTAS about the system becoming operational giving the
technical document on Internet payment.
The concept paper on this
subject circulated by the Indian Banks’ Association (IBA), outlining the main
features of the system is as follows (for reference)
“Concept Paper on
Electronic Payment of Taxes through bank having Internet banking facilities”
Income-tax Department
through Tax Information Network (TIN) will provide a screen at its website for
the taxpayers to fill up electronic challan in the prescribed proforma. It will be mandatory for the taxpayers to
quote PAN/TAN, Name and address of the taxpayer, Assessment Year, Major Head,
Minor Head, type of Payment, etc. The system will validate the PAN/TAN against
the database of PANs/TANs and also ensure that other particulars are filled up
properly with valid codes. Once the data is validated, a drop down menu will
appear indicating the names of various bank offering internet payment
facilities. The taxpayers can opt for any of these banks in which he has an internet
account. A link will transfer the data
to the web of the selected bank. The tax payer will be able to fill in the
payment details and amount on the bank’s website. After satisfying himself of
the correctness of the particulars, the taxpayer will complete the transaction
using the internet username and password allotted to him by his bank.
On completion of the
transaction, the taxpayer will have an option to download the counterfoil from
the website of the bank. This will contain all details available that are
usually given in the hard copy of the counterfoil including Challan
Identification Number (CIN). The
scheme has been rolled out and is in place with well-defined roles for TIN,
Agency Banks & Zonal Accounts Offices.
REFUND
BANKER SCHEME
As
a step towards obviating delays in the receipt of Refund Orders by the
assessees, the Income Tax Department (ITD) initiated a pilot on the concept of “Refund
Banker” in certain selected circles in Delhi and in Patna and in further
circles in Mumbai, Kolkata, Chennai & Bangalore from 01.10.2007, for the
purpose of implementing the scheme of “Refund Banker” through the State Bank of
India (SBI).
The
scheme was further extended to the non-corporate assessees in eight more cities
of Ahmedabad, Hyderabad, Bhubaneshwar, Pune, Kochi, Chandigarh, Allahabad and
Trivandrum w.e.f. 01.10.2009 and has been subsequently extended on pan-India
basis. SBI, CMP Branch, Mumbai is
acting as the “Refund Banker”.
A
Committee was constituted under the Chairmanship of Member (Revenue), CBDT for
working out the modalities for implementation of the Scheme of “Refund Banker”
for the Income Tax Department, of which Pr. CCA (CBDT) is one of the five
members. It was constituted to examine all
issues relating to implementation of the scheme as a pilot project including:
§ Selection
of the bank,
§ Cost
to the Department,
§ Issues
of pre-funding,
§ Issues
of security of refund,
§ Issues
of accounting of refunds,
§ Record
management, and
§ Submission
of periodic report/recommendations to CBDT, etc.
On
receipt of encoded file from ITD, SBI, CMP branch processes the refunds and
issues drafts or funds transfer on case to case basis. The scrolls/DMS are sent to respective ZAOs
by CMP branch and accounting of refunds is done by ZAO on this basis.
PAYMENT OF DIRECT TAXES THROUGH ATM
To ease the process of tax-payment further, CBDT initiated ‘payment of
direct taxes through ATMs’ utilizing ATM-cum-Debit Card of authorized/agency
banks.
The process of tax payment through ATM involves 2 stages. In the first
stage, the tax payer who is a debit card holder will register with the agency
bank, subject to normal validation checks. After registration, a template with
a display label will be created. For each sub-head, there will be single
registration leading to a single display label. In second stage, tax payer inserts
the debit card in ATM machine and makes the payment as per the displayed label.
The ATM payments will be treated as e-payments as per the provisions of
the CBDT Circular number 5/2008 dated 14th July 2008. Therefore, the
reporting and remittance discipline as applicable for the e-payments will be
applied to the ATM tax payment also.
BENEFITS OF PAYMENT OF TAX THROUGH ATM
·
Ensure immediate credit to the Govt. Account of
the Taxes paid by the taxpayer;
·
Faster and easier linking of challan payments
with the returns;
·
Good quality tax payment data will be
generated. This will enable efficient credit of taxes while processing returns;
·
No requirement of filling of physical challan –
paperless facilitation of tax payment. This will lead to error free tax payment
data as manual intervention for repetitive transaction is eliminated;
·
Instant CIN intimations to taxpayers confirming
tax payment;
·
Tax payment can be done in all 365 days and on
24X7 basis;
·
Tax payment data would be automatically
validated data with nearly 0% error in PAN quoting. This would help in easy
matching of tax payment with the returns being filed by the corresponding
taxpayers;
·
Since the account statement of the tax payer
would also contain details of the tax payment, including CIN of the taxpayers,
a permanent record of the tax payment having made through this mode would be
available with taxpayer. This would enable reconciliation, on later date if and
when need arises;
·
This system will also pave the way to bring the
small and medium taxpayer under the ambit of e-payment and relieve the stain on
tax payments involving physical challans as well.
CHALLAN
CORRECTION MECHANISM BY BANKS (ONLY FOR PHYSICAL CHALLANS) RECORD TYPE - RT(18)
At present, through a functionality termed
RT 08, banks were permitted to correct data relating to three fields only i.e.
amount, major head code and name. The other errors could be corrected only by
the assessing officers. Thus, in the current scenario, even after the
taxpayers/banks realize their mistakes in submitting/feeding erroneous challan
data they could not make any changes.
As
remedy to this situation for physical challans, a Challan Correction Mechanism termed RT-18 has been rolled out effective from 01.09.2011.
Under this mechanism, a window/staging period to banks has been allowed to
correct the errors in the OLTAS data after it is uploaded to NSDL database. For
this purpose the banks will be required to upload corrections in challan data
including those requested by taxpayers, in separate file in the same manner in
which they upload challan data to TIN and to the concerned Zonal Account
Offices (ZAOs) electronically.
REVENUE ACCOUNTING
MANAGEMENT SYSTEM [RAMS]
[CONCEPTUALISATION
& FUNCTIONAL OVERVIEW]
EVOLUTION
The Principal Chief Controller of
Accounts heads the accounting organization of the Central Board of Direct Taxes
and he is responsible for accounting of both Expenditure & Revenue (Direct
Taxes) on monthly basis through field formations i.e. Zonal
Accounts Offices (ZAOs) spread all over the country.
The Office of Controller General of
Accounts has taken a lot of initiatives for computerization of
Expenditure accounts through COMPACT & e-lekha. At present the expenditure account is being
compiled through COMPACT at all the 24 ZAOs successfully and uploaded on
‘e-lekha’ regularly. Further, since CBDT
is revenue oriented department, separate accounts for tax receipts are being
maintained by the Office of the Pr. Chief Controller of Accounts.
Revenue Account comprises Direct Taxes
collected/refunded [both via ‘physical’ & ‘electronic’ mode i.e. internet collection]
through authorized agency banks/branches and transactions routed through
Personal Deposit Account operated by Income Tax Department for amounts seized
from tax evaders during Search & Seizure operations.
Revenue Accounts of Direct Taxes are
compiled in Zonal Accounts Offices (ZAOs) Major head-wise from the Daily
Scrolls and Date-wise Monthly Statements (DMS) received from the Nodal Branches
of all the authorized agency Banks. The
procedure for acceptance of taxes at the receiving branches, preparation of
scrolls by the collecting branch, functions of Nodal Branch & the erstwhile
procedure of action to be taken by Zonal Accounts Office for accounting of
Direct Taxes has been elucidated in Civil Accounts Manual [the extract of which
has been reproduced earlier in this volume].
The Income Tax Department initiated
the computerization of revenue collection through OLTAS i.e. Online Tax Accounting
System w.e.f. June, 2004. But
accounting of revenue by ZAOs was being done on the basis of computer generated
printouts of scrolls/DMS submitted by agency banks and for Detail Account we
were dependent on Designated Officer/Regional Computer Centre of Income Tax
Department, which was made available only after a gap of almost 5-6 months.
To be in sync with I. T. initiatives
taken by the Income Tax Department, the agency banks and O/o CGA for revenue
collection & computerization of accounts, the need arise for developing an
application/software to align the Information Technology with business rules of
ZAOs and bringing efficiency in various processes performed in ZAO offices.
Thus was born “Revenue Accounting Management System [COMPACT (RAMS)]” – an offline
revenue accounting package – developed by N.I.C.
CONCEPTUALISATION
In view of large number of challans
involved, it was not possible for ZAOs to compile challan-wise account with
detailed classification at the first stage.
Moreover, since the banks had
already digitized the challan information at the first point of contact i.e. at
the dealing branch/receiving branch level, therefore, a process was
conceptualized whereby the challan information’s could be made available to the
ZAOs in a digitized form from the Nodal Branches.
The Office of Pr. CCA, CBDT
conducted pilots by taking data directly from banks for almost a year. Various file formats for physical payments,
e-payments, refund banker, scroll formats and error scroll formats were designed
and sent to all the banks for orienting their Information Technology department
to provide all direct tax receipts and refunds data in the prescribed format on
daily basis.
Subsequently, all the authorized
banks were directed to upload all the direct tax receipts and refunds data on a
centralized web-server on daily basis.
The web-server sorts the file pertaining to various ZAOs and serves them
to the concerned ZAOs. This office has
further automated the ‘Put-Through’ from Reserve Bank of India. RBI now sends an electronic file indicating
the put-through of all the Nodal branches, Major Head-wise & Bank-wise.
FUNCTIONAL
COVERAGE
The COMPACT (RAMS) software is at
the lowest level of revenue accounting and it provides information to higher
levels of accounting systems for further processing. The software covers all the major revenue
accounting functions i.e. compilation, bank reconciliation and consolidation of
accounts. It supports batch uploads and
integration of day-end revenue data to a central database which drives the
web-enabled application ‘e-lekha’ for financial management.
INFORMATION
INTEGRATION
·
It
will capture the accounts data from the original source i.e. the challans from
the banks to improve the quality of data used for compilation and consolidation
of accounts.
·
Functional
interfaces among various modules to enhance data integrity and to enforce
process validations.
·
Electronic
incorporation from text files i.e.
Ø The challans received
from various banks can be incorporated in the Compilation Module;
Ø Daily receipt/payment
scroll can be incorporated in the Compilation Module;
Ø Daily Summary scroll can
be incorporated in the Compilation Module;
Ø Monthly Summary scroll
can be incorporated in the Compilation Module;
Ø Reserve Bank’s
‘put-through’ is incorporated in the Compilation Module.
OPERATIONAL
EFFICIENCY
The operational efficiency of the
accounting processes will be improved due to proper validations, speed,
user-friendly interface and security features.
Ø Vital checks and
validations for the incorporation of challans;
Ø Online reconciliation of
challans during bank scroll entry;
Ø Mapping of all valid
combinations of 13-digit function-head with 2-digit object-head and 1-digit
category. This is further mapped to the
3-digit demand for grant and 6-digit DDO code;
Ø Second level of mapping
of accounting codes of the CGA’s organization with that used by the Income Tax
Department for classification of different challans;
Ø Access to the software
for authorized users;
Ø Pre-defined access rights
to the users of the forms and reports of the application;
Ø Client/Server application
with multi-user facility;
Ø Locking of MS-SQL server
instance running COMPACT (RAMS);
Ø Encrypted back-up option
through software.
PREPARATION
OF ACCOUNTS
The Government Accounting System
encompasses various stages from recording the initial transactions in challans
and refund vouchers to the preparation of Annual Accounts. The monthly accounts
are compiled by the Zonal Accounts Offices on the basis of challans submitted
by the Agency Banks with scrolls and submitted to Principal Accounts Office.
The Principal Accounts Office consolidates the Accounts received from all the
ZAOs and sends the same to the Office of Controller General of Accounts. The Annual Accounts and Appropriation
Accounts are audited and certified by the Comptroller and Auditor General
(C&AG) of India and subsequently placed before the Parliament as a
constitutional requirement.
The flow of Accounting Data to the
Parliament is shown in Chart 2.2 and to the Principal Chief Controller of
Accounts, Central Board of Direct Taxes in Chart 2.3.
HIGHLIGHTS OF THE DIRECT TAX
COLLECTIONS DURING 2010-11
During
2010-11, the gross collection of Direct Taxes upto March, 2011 (including J.E.
accounts) was Rs.5,22,139.80 crores
(including CTDS upto March, 2011 (Sy-II.)).
These figures include the Tax Deducted at Source (CTDS) by all
Departments/Ministries of the Central Government. CTDS figures are not reflected in the books
of RBI, as they do not follow the banking channel. However, in respect of Tax Deducted at Source
(TDS ) by the Accountant General
(AGs) in the State Governments, the figures are reflected in ZAOs
Accounts. The hike in net collection in 2010-11 over the collection of 2009-10 is
Rs. 68871.16 crores in terms of quantum and 18.22 in terms of percentage.
ZAO wise collections are shown in detail in Statement 2.1 & Chart 2.4
BANK-WISE
COLLECTION OF DIRECT TAXES DURING 2010-11
(Base:
RBI Report)
The
top ten Banks in terms of gross collection of Direct Taxes during 2010-11 were
following:
Sr. No.
|
Name of the
Bank
|
Amount [in
crores of Rs.]
|
1
|
State Bank of India
|
156277.29
|
2
|
HDFC Bank Ltd.
|
98980.35
|
3
|
IDBI Bank Ltd.
|
70300.57
|
4
|
AXIS Bank Ltd.
|
48757.79
|
5
|
ICICI Bank Ltd.
|
22411.80
|
6
|
Corporation Bank
|
16105.24
|
7
|
Punjab National Bank
|
10758.63
|
8
|
Bank of Baroda
|
10362.22
|
9
|
Bank of India
|
8933.56
|
10
|
Union Bank of India
|
7989.18
|
Thus,
State Bank of India accounted for 30.33% of gross Direct Tax collection during
2010-11. The Bank-wise collection is
shown in the Statement 2.2 and Chart 2.5.
Chart 2.6 reflects the collection made by top six Banks and the
rest. The State-wise collection and
refund of Direct Taxes are shown in Statement 2.3 and Chart 2.7.
MONITORING
SYSTEM FOR REVENUE RECEIPTS
Principal
Chief Controller of Accounts, CBDT, New Delhi monitors the receipts and
remittances of Direct Taxes. This
mammoth task is completed with the help of 24 Zonal Accounts Offices (operational
for Receipt Accounts) spread through out the length and breadth of the
Country. The monitoring process starts
on the receipt of scrolls & the challans from the Nodal Branches of the
designated Banks.
v The
ZAOs monitor the remittance of Direct Taxes from the date of its receipt in the
Bank branch to the date of the final put through at Central Accounts Section,
Reserve Bank of India, Nagpur. During 2010-11, the collection and reporting
procedures have gone high-tech. The On
Line Tax Accounting System (OLTAS) has been implemented with effect from 1st
June 2004. The time prescribed for the
remittance of the Direct Taxes to CAS ,
Reserve Bank of India, Nagpur was first reduced to T+3 days (inclusive of
Sunday and holidays) but later on it was retained at the pre-OLTAS level for
the year 2004-05. With effect from 1st of
April 2005 the prescribed time has been fixed at T+3 working days. As the
transaction are closed at the RBI at 1 P.M.
It has now been decided by the Controller General of Accounts that the
permissible period indicated would not include the Put through Date at RBI for
calculating the T+3 working days in respect of Public Sector Banks only. The
time limit for the Private Sector Banks was retained at T+3 days inclusive of
Sunday and holidays. If the collections
failed to reach the Government Accounts at Nagpur within the prescribed period,
interest was levied for the entire period of delay i.e. from the date of
realization of the instrument or receipt of cash to the date of Final Put
Through at CAS , Reserve Bank of
India, Nagpur.
v The
remittance period in respect of all government transactions made through
e-payments in respect of Public Sector Banks and Private Sector Banks will be T+1
working day (including put through date) w.e.f. November 1, 2010.
With
the implementation of OLTAS, there are no penal delays. The collections that were not remitted to
Government Accounts within the prescribed period were brought under the
category of penal clauses.
The
Controller General of Accounts had appointed a Committee to review the
expeditious movement of all categories of Government revenues to its exchequer
and other related issues. Based on the recommendations of the aforesaid
committee, it has been decided as under:-
1.
Applicability of exclusion of put
through date for the transactions (relating to revenue receipts) affected
during the period 1.05.2005 to 31.12.2006 for the cases in which penal interest
has already been paid.
2.
Permissible period for remittance of
Government revenues into Government account for outstation transactions under
Electronic Accounting System in Excise and Service Tax (EASIEST).
3.
Levy of petty amount of penal interest
on delayed remittances of Government receipts.
4.
Waiver of penal interest due to the
teething problems experienced by dealing branches during the initial period of
OLTAS.
(Reference CGA’s
OM No.S-11012/3/P.Intt(RP).CGA/2007/RBD/499 dated 06.04.2009)
In continuation of the above, the
following decisions have also been taken by CGA:-
1.
A period of T+12 working days
(excluding put through date & where T is the day when is money available to
the branch), is allowed with effect from 01.01.2010 to Public Sector banks for
manual remittance of Government receipts to CAS (RBI) in respect of branches
located in Jammu & Kashmir, Leh, Uttarakhand, Himachal Pradesh, Sikkim,
North Eastern Region (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram,
Nagaland and Tripura), Jharkhand and Chhattisgarh.
2.
The past cases, if any, pertaining to
the period from 01.01.2007 to 31.12.2009 may be considered for relation of
permissible period in respect of difficult/remote areas, on case to case basis.
3.
These revised norms for remote,
difficult and hilly areas will not be applicable to Private Sector Banks.
(Reference CGA’s
OM No.S-11012/3/P.Intt(RP).CGA/2007/RBD/304 dated 24.02.2010)
The
interest continues to be imposed by the ZAOs and intimated to the Banks. The cases of delay of more than Rs. 1.00
crore were reported to Headquarters for further action.
An effective system of reconciliation
of receipts has been put in place. The
designated Banks are required to certify on monthly basis that they have
reconciled the receipts with their Receiving Branches. However, instances of delays in the
reconciliation process have been noticed from time to time.
Local
Monitoring Committee Meetings & Apex Monitoring Committee Meetings for each
zone are held at the level of ZAOs and Pr. CCA respectively at six monthly
& annual intervals to review the performance of authorized banks in the
collection, remittance and reconciliation of Direct Taxes. The deficiencies observed
with respect to the individual Banks are highlighted in these meetings and
corrective measures are suggested. Effective Monitoring of the remittance
process by office of the Pr. CCA, CBDT and the implementation of OLTAS has paid
rich dividends. The overall delays in
the year 1995-96 were 19.30% of the gross collection. The average period of delays was 6 days.
Due to the measures enumerated above, the delays as on 31.03.2011 stood
at approximately 0.19% of the gross receipts.
It
would be relevant to mention here that the total number of ZAOs has come down
from 25 to 24 since the inception of departmentalized accounting system in
1977-78. On the other hand the
administrative Chief Commissionerates of Income Tax (CCITs)/ Commissionerates
of Income Tax (CITs) have gone up from 24 to 116 in the corresponding
period. The number of authorized Bank
Branches has gone up from 5104
in 1977-78 to approximately 12410 in 2010-11, which is
more than 143.14% increase. Statement 2.8 shows the break-up of the
total number of 12410 branches of RBI, SBI, other Public Sector Banks and
Private Sector Banks collecting Direct Taxes, corresponding to each ZAO. It may be seen that SBI alone accounts for
approximately 27.65% of the total number of authorized Bank branches.
Statements
2.9, Chart 2.10 & 2.11 show
the year-wise increase the number of authorized Bank branches as well as that
of the total number of Chief Commissionerates of Income Tax (CCITs) and ZAOs.
The
total Direct Tax Collections have increased from Rs. 2600 crores in 1977-78 to Rs.4,46,934.47
crores (Net) in 2010-11 with the number of challans + ITROs received in ZAOs
going up from around 50 lakhs in 1977-78 to more than 2.99 crores in 2010-11. However, the staff strength of ZAOs has grown
marginally from 925 in
1977-78 to 961 in 2010-11.
The
ZAOs have achieved result in such a scenario due to a relentless drive to
enhance the efficiency of the staff of Pr. CCA, CBDT along with an unfailing
commitment towards computerization and modernization of work processes.