RBI Master Circular No: RBI/2009-10/60 (Ref: DGBA.GAD.No. H-2 /42.01.034/2009-10) (01-Jul-09) Master Circular â Collection of Direct Taxes- OLTAS
All Agency Banks
Master Circular -- Collection of Direct Taxes- OLTAS
Please refer to our master circular RBI/2008-09/81 dated July 01, 2008 on the above subject which was issued with a view to facilitate quick reference to all the extant instructions issued on the subject at one place. We have now updated the master circular incorporating important instructions issued by us till end June, 2009. A copy of the same is enclosed for your information. This circular may also be downloaded from our website www.mastercirculars.rbi.org.in
Please acknowledge receipt.
B. K. Mishra
Encl: As above
Master Circular on Collection of Direct Taxes
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.
2. The Principal Chief Controller of Accounts (Pr.CCA) 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 located at various places.
3. Major Heads of Account
The various types of direct taxes collected by the Income Tax Department are classified under the following Major Heads:
|i)Corporation Tax (C.T.)||0020 Corporation Tax|
|ii)Income Tax (I.T.)||
0021 Taxes on Income other than Corporation Tax
|iii) Wealth Tax (W.T.)||0032 Taxes on Wealth|
|iv)Gift Tax (G.T.)||0033 Gift Tax|
|v)Fringe Benefit Tax||0026|
|vi)Banking Cash Transaction Tax||0036|
4. Prior to 1st April 1976, Income and other Direct taxes were accepted by the Offices of Reserve Bank of India (RBI), the branches of State Bank of India (SBI), its associates conducting Government business, treasuries and sub-treasuries. With a view to increasing the number of points at which these taxes could be deposited conveniently by the members of the public,a scheme for collection of income tax and other direct taxes through the branches of public sector banks was introduced with effect from 1st April 1976.
5. ''Accounting System for Direct Taxes'' - Revised procedure
(RBI Circular DGBA.GAD.No.H-684/42.01.001/2003-04 dated January 9, 2004)
After studying the issues relating to Accounting and reporting, delays in remittance and in dispatch of documents etc., the ''Working Group on Government Accounts'' suggested the revised procedure which came into effect from 1st October 1988. Reserve Bank has issued comprehensive instructions on acceptance of CBDT dues and its accounting and reporting vide its publication ''Accounting System for Direct Taxes'' which came to be known as the Pink Booklet.
6. With a view to improving customer service to direct taxpayers, special attention was drawn to the following provisions of ''Accounting System for Direct Taxes'':
(RBI/2004/135 (DGBA.GAD.No.1142 /42.01.001/2003-04) dated April 2, 2004)
(i) Issue of Token: While instructions issued by Reserve Bank regarding the issue of paper token as an acknowledgement of payments are very clear, it is observed that a large number of authorised branches do not issue such tokens. In many places, there are informal arrangements wherein the taxpayer is asked to collect the challan after a specific date from the bank branches. In some cases, the receipted challans are not kept securely and are placed in an open box. The customers are allowed to freely pick up their challans without any identification. In the case of challans deposited with cheque or draft, the receipted challans will be issued on realisation of the amount of cheque or draft and hence the paper token should indicate the date on which the receipted copies of the challans would be kept ready so that the assessee makes an arrangement to collect the receipted challan on the date given in the token.
(ii) Receipted Challan: The receipted challan should be made available to the assessee within 4-5 days, based on the local Clearing arrangements. The branches should ensure that this stipulated waiting period must not be exceeded and any deviation in this regard will be viewed seriously by Reserve Bank. The receipted challans should be handled with care and in a secured manner till they are handed over to the assessee across the counter on presentation of the relevant paper token. Under no circumstance, the receipted challan should be kept in open box accessible to customers.
(iii) Double Date Stamp on Receipted Challan: It is reiterated that the challan should bear two dates i.e. the 'Date of tender' of challans and instruments and the 'Date of realisation' of proceeds of the instruments as specified in Annexure-V of the Pink Booklet.
(iv) Acceptance of Clearing Cheques: It is observed that some of the banks are reluctant to accept cheques drawn on other banks while receiving taxes resulting in practice of Chartered Accountants/Tax Consultants tendering their own cheques on behalf of their clients. As accepting cheques drawn on other banks will greatly facilitate the customers, banks are advised not to turn back customers who tender challans with cheques drawn on other banks.
(v) Do's and Don''ts : A list of Do's and Don'ts as given in the Annexure-IV of the Pink Booklet were not being supplied to the bank staff dealing with the Direct Tax collection work as required. The same may be issued to the branches.
7. Online Tax Accounting System (OLTAS)
(RBI/2004/131 (DGBA.GAD.No.1008/42.01.034/2003-04) dated April 1, 2004, RBI/2004/145 (DGBA.GAD.No. H-1068 /42.01.034/2003-04) dated April 16, 2004 & RBI/2004/184 (DGBA.GAD.No.H-1114/42.01.034/2003-04) dated April 29, 2004)
7.1 A High Powered Committee (HPC) was constituted by Reserve Bank for setting up OLTAS in January 2003. The HPC set up a Sub-Committee to suggest the Accounting Procedure for Online Tax Accounting System. The Accounting procedure duly approved by CGA and CAG was introduced for OLTAS w.e.f June 01, 2004.The new accounting procedure (Annexure) was forwarded to all agency banks on April 16, 2004. The salient features of the new accounting procedure are the introduction of a single copy challan with tear-off taxpayer''s counterfoil, branding of acknowledgement stamp with unique serial number known as Challan Identification Number (CIN) on the single copy challan and on taxpayer''s counterfoil. Tax payers are now able to view the tax paid by them by logging on to http://tin-nsdl.com. Further, the new file structure required by Income Tax Department was also forwarded to Agency banks for developing suitable software for the OLTAS.
7.2 Under the new procedure banks were advised to issue acknowledgement in respect of challans tendered with clearing cheques/drafts (i.e. other than cash and transfer cheques/drafts) only after the realization of such cheques/ drafts. Banks were further advised to issue paper token in respect of such challans indicating the date of tender and the date on which the counterfoil will be kept for delivery. The receiving banker was advised to return the tear-off portion of taxpayers'' counterfoil on realization of such cheques/ drafts after branding with the rubber stamp acknowledging the payment with Challan Identification Number (CIN) comprising of the following:
7.3 The tear off portion of the challans accompanied with cash or cheques drawn on the same receiving branch may be returned to the taxpayer on the same day with necessary acknowledgement by branding with the rubber stamp prescribed above.
7.4 All the non-computerised/ non- networked branches were advised to ensure that data pertaining to those branches be transmitted from its nearest computerized/networked branch to the Nodal branch and from Nodal branch to Link Cell electronically so that complete data pertaining to all the authorized branches of a bank throughout India are seamlessly transmitted to the Tax Information Network (TIN) hosted by NSDL.
7.5 It was further advised that the new accounting procedure under OLTAS will replace the existing procedure in so far as the sending of scrolls and challans to the Income Tax Department is concerned. It was also advised that except for the changes proposed in the OLTAS Accounting Procedure forwarded to banks, the instructions contained in the Pink booklet "Accounting System for Direct Taxes" (Updated upto June 30, 1999) will continue to be in force.
7.6 Further, need for transmitting data online to TIN in addition to the normal practice of sending paper scrolls and challans to the ZAO and Income Tax department was also emphasised.
7.7 It was suggested to banks that their Link Cells at Nagpur may be connected to TIN (NSDL) at Mumbai with a dedicated leased line to ensure secure two way communication.
8. Transmission of data to NSDL - Validation Checks
(RBI/2004/75 (DGBA.GAD.No. H-69 /42.01.034/2004-05) dated July 28, 2004,
DGBA.GAD.No.H-8649/42.01.034/2005-06 dated December 23, 2005)
8.1 Various types of errors noticed by National Securities Depository Ltd. (NSDL)/Income Tax Department in the data uploaded by banks have been advised to the banks. In particular, data entry errors noticed in respect of PAN/TAN Number, incorrect nodal scroll branch data, assessment year, absence or incorrect tax-payer's name, CIN Numbers, major head codes and amounts were brought to the notice of banks.
8.2 To counter the lacunae observed, it has been decided that each bank will incorporate the following validation checks with immediate effect in the OLTAS software for all Record Types:
(i) Value for the field NOD_BR_COL_SC_DT and NOD_BR_PYMT_SC_DT in RT01 and RT06...
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