9911796707
TMI BlogMaster Circular - Collection of Direct Taxes - OLTAS - RBIX X X X Extracts X X X X X X X X Extracts X X X X ..... ler 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. Major Heads of Account 3. 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 deposi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nter 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) dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 insofar 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- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r' system of data entry must be adopted in all the bank branches. (ii) All collecting branches must compulsorily transmit Record Type 01 and Record Type 02 (Summary Record), if there is collection on that day. In branches where there has been no collection during the day, only Record Type 02 (NIL statement) is to be transmitted to the Nodal Branch. This would enable the TIN to accurately monitor the implementation of OLTAS. (iii) At the Nodal Branch level supervision has to be made to ensure that all the collecting branches are transmitting the Record Type 01 and Record Type 02. They should also ensure that those collecting branches that have no collection transmit only Record Type 02 (NIL Statement) with MAJ_HD_CD=0 and TOT_AMT=0 to their respective Nodal Branch. (iv) Branch Manager of Nodal Branch must ensure that the Major Head wise collection shown in the Nodal Branch Scroll of a particular date submitted to the ZAO, tallies with the corresponding totals in the OLTAS data transmitted to the Link Cell for submission to TIN. This exercise should be done in respect of all payments from June 1, 2004. (v) All the banks at Link Cell level should maintain an error record of acti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -Agency arrangement altogether. Banks were advised to designate their own Nodal branches wherever their branches were functioning under sub-agency arrangements. 11. Funds Settlement - Reporting to RBI, CAS Nagpur (RBI/2005/466 (DGBA.GAD.No.H. 5801 /42.01.034/ 2004-05) dated May 13, 2005 & RBI/2005/406 (DGBA.GAD.H 5236/42.01.034/2004-2005) dated March 29, 2005) 11.1 Keeping in view the decision to switch over to settlement of funds on the basis of on-line data uploaded to TIN with effect from April 1, 2005, the existing system of reporting CBDT transactions to RBI, CAS, Nagpur has been reviewed. Accordingly, it was decided that agency banks will submit the CBDT figures to RBI, CAS, Nagpur separately through digitally signed e-mail (to be signed by a class II certificate holder). The CBDT figures reported to TIN as at 13.15 hours on week days and 12.30 p.m. on Saturdays would simultaneously be reported to CAS, Nagpur for funds settlement through digitally signed e-mail. The data mailed after the cut-off time would not be accepted by CAS, Nagpur under any circumstances. 11.2 Banks were advised that any rejections by the system at RBI, CAS will not be accounted for on the same day ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dered with clearing cheques (i.e., drawn on other branches/banks) would have to be returned only on realisation of the instruments. The authorized official of the receiving bank branch was also required to sign the tear-off portion of the challan as well as original challan. 12.2 Banks were requested to visit Income Tax website (www.incometaxindia.gov.in) for Frequently Asked Questions (FAQs) on OLTAS. 13. Further, banks were advised to ensure full participation of authorized branches and ensure that every challan record is transmitted to TIN by every branch where tax collection has been made. It was reiterated that a NIL statement (Record type 02) may be transmitted to the nodal branch when there had been no tax collection during the day to enable TIN to monitor OLTAS properly. It was also emphasized that the data transmitted to TIN should be correct and complete and conforms to the stipulated procedures. 14. Banks were advised of the following critical short comings which were brought to the notice of RBI by Directorate of Income-tax: (RBI/2004/164 (DGBA.GAD.No.H-170/42.01.034/2003-04) dated September 4, 2004) 14.1 Non-capture of PAN/TAN by banks - It had been reported from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder OLTAS, it has been decided in consultation with the office of Principal Chief Controller of Accounts (Pr CCA), CBDT, New Delhi that any proposal for deauthorisation of branches should be submitted by the Head Offices of the Agency banks to RBI, Central Office keeping in view the following parameters/guidelines: (i) The existing branch has not received any Direct Tax in the previous year (April-March) (ii) The proposal for delisting of authorised branch has the approval of the Top Management of the concerned bank. 15.2 After the proposal is approved by RBI/Office of Pr. CCA, CBDT the concerned bank should give wide publicity to the effect that the specific branch will discontinue acceptance of taxes with effect from a specific prospective date and advise us accordingly. 16. File Segregation Utility developed by Tax Information Network (RBI/2005/81(DGBA.GAD.No.382/42.01.034 /2005-2006) dated July 26, 2005) Requests have been received from some banks that Tax Information Network (TIN) should not reject the entire file of OLTAS data received from a bank's Link Cell because of a few erroneous records. The banks have desired that TIN should accept the records which are with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthorisation for the concerned bank or the branch will be forwarded to the CGA for review with the recommendations of Pr CCA/CCA/CA. The banks are expected to build up their own internal control mechanism so that the preventive and corrective actions are taken by the bank for its branches well in time. Accounting Procedure relating to crediting of CBDT collections to Govt. Account - Private Sector Agency Banks 18. In the case of private sector agency banks the time limit for settling the transactions with CAS, Nagpur will continue to be T+3 days (including Sundays and Holidays). The period of delay will be counted from the date of receipt of the collection at the receiving branch (actual realisation of the money in the bank) till it is reported to Reserve Bank of India, CAS, Nagpur for credit to Government account. Delayed period interest will be recoverable from the banks regardless of the amount involved. Delayed period interest shall be levied at the prevailing Bank Rate+2 per cent. (Bank Rate shall be notified by RBI from time to time). 18.1 Further, the instructions given at Para 17.6 above will also be applicable to private sector agency banks. 19. Drawing of Cheques by A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rce from Timber obtained by any Mode other than a Forest Lease 6 CC 206C Collection at source from any other Forest Produce (not being Tendu Leaves) 6 CD 206C Collection at source from Scrap 6 CE 206C Collection at source from contractors or licensee or lease relating to Parking lots 6CF 206C Collection at source from contractors or licensee or lease relating to Toll Plaza 6CG 206C Collection at source from contractors or licensee or lease relating to mine or quarry 6 CH 206C Collection at source from Tendu leaves 6 CI CHALLAN NO. 282 This challan is for the payment of a number of taxes. The changes introduced in this challan are as under: (a) Securities Transaction Tax has been renumbered as Major Head 0034 in place of the earlier Major Head 0025. (b) Wealth-Tax - Major Head 0032 has been included in this Challan. Earlier this Major Head was in Challan No. 280. CHALLAN NO. 283 This is a new challan introduced. It is for the payment of (a) Banking Cash Transaction Tax - Major Head 0036 and (b) Fringe Benefit Tax - Major Head 0026. The valid Minor Head for both these categories of taxes are (i) Self Assessment Tax, Minor Head - 300 and (ii) Tax on Regular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uctor on Challan ITNS 281, as the case may be. The branches may display a notice prominently stating that 'Quoting of PAN/TAN on Challans is compulsory from 1-1-2005' in the branches and not to accept challans without PAN/TAN from that date. The procedure for obtaining PAN/TAN is available in the website of Income-tax Department (http://www.incometaxindia.gov.in or http://www.tin-nsdl.com). The branches may guide the assessees to obtain PAN/TAN before depositing the tax. The facility of downloading the challan form Nos. 280 & 281 with pre-printed PAN/TAN number may also be given wide publicity through your designated branches. 23. Banking Cash Transaction Tax (BCTT) (RBI/2005/43(DGBA.GAD.No.H-76/42.01.001/2005-06) dated July 5, 2005) 23.1 Banks were advised the procedure to be followed as regards levy of Banking Cash Transaction Tax on the cash withdrawal by the Government departments. Extract of the same is reproduced below: "Government of India has introduced a new levy of 0.1 per cent, called as Banking Cash Transaction Tax (BCTT) through Finance Act, 2005 which has come into effect from June 1, 2005. The BCTT is levied on the value of taxable banking transactions which have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .taxmann.com. Annex I ACCOUNTING PROCEDURE RELATING TO ON-LINE TAX ACCOUNTING SYSTEM (OLTAS) 1. Procedure for acceptance of taxes at the receiving branches 1.1 A taxpayer can pay direct taxes at any authorised branch of the authorised bank either in cash, direct debit to account or by a cheque/draft drawn on the same bank or another bank/branch at the same centre where the payment is made. The payment of tax by outstation cheques/drafts can also be made at any authorised bank, or through an electronic means of remittance to the authorized bank/branch. For every payment there should be a challan in the prescribed format. The challan format is a single copy challan with the main challan at the top and the taxpayer's counterfoil at the bottom of the challan (Specimen at Annexure 'A'). 1.2 At the counter of Receiving Bank Branch - The receiving clerk/teller of the receiving branch will have to check up the following points while accepting the payment:— (a) Whether main portion of the challan and the taxpayer's counterfoil form have been filled in properly and the amount and major head of account to which the amount is to be accounted/credited is correctly recorded therein; (b) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpression of the receipt stamp is clear and legible. An authorized official of the branch will sign in full the taxpayer's counterfoil of the challan and initial the main copy of the challan having received the amount. In the taxpayer's counterfoil, the amount received will be indicated in both words and figures. The receipted taxpayer's counterfoil will be returned to the tenderer and the main copy will thereafter be passed on for scrolling in the Receipt scroll. 1.3-2CHALLANS TENDERED WITH CHEQUE/DRAFT - A challan tendered with cheque/draft will be branded with a 'double date stamp' to indicate the date of tender of the instrument as well as the date of realization thereof. It may be possible that some branches might be following the practice of branding the challans with an inward date stamp as soon as the challans are tendered over the counter. In that case the double date stamp may not be necessary. However, it will be ensured that the inward date stamp is invariably branded on both the main copy and the taxpayer's counterfoil of the challan. The checking official will initially ensure that there is no difference between the amount of cheque/draft and the amount recorded in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f realization: DD/MM/YY (at the place indicated in the challan) In case of cash tender the 'Date of tender' and 'Date of realization' will be the same. 1.4-3 The collecting bank will not issue receipt in any other format. 2. Preparation of Scrolls by the Collecting Branch 2.1 A running serial number will be given to all the challans received at a bank branch counter on each day against which cash payments have been made or cheques/drafts have been realized on that date. 2.2 All the challan fields such as name and PAN, the serial number, date of deposit and BSR code of the branch are required to be captured when the challan is deposited by the taxpayer at the bank counter. The data structure of the fields of the challan for which data has to be captured and transmitted will be as informed to the banks by the Income-tax Department. Permanent Account Number (PAN) and the name of the taxpayer will invariably be incorporated in the Receipt & Payment Scroll. 2.3 At the end of customer banking hours, the bank branch should identify all those challans against which payment has been received in cash for the day or for which payments by cheque/draft have been realised for the day. As t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llans arranged in the same serial order in which they are entered in the scrolls. At the beginning of the next working day, the receiving branch will forward the same to the Nodal Branch for onward transmission to the ZAO. 2.6 Transmission of error records - In case of any error by the collecting bank branch in reporting the amount of payment made by a taxpayer or major head of payment, the bank will transmit the corrected information on-line to TIN through an error record, the format for which will be as prescribed by the Income-tax Department. Rectification of the errors in the amount and the head of account will also be reported to ZAO through 'Error Scroll" to be sent through Nodal branch. Only the amount of tax payment as reported by the bank to the TIN will be accepted by the Income-tax Department as the payment made by the taxpayer. 3. Procedure for payment of Income Tax Refund Orders (ITROs)/ECS 3.1 Direct tax refund work is entrusted to only one branch of an authorized bank generally Reserve Bank of India, State Bank of India or its Associate Banks at an ITD centre/a District. The Refund Orders will be presented to the branch by the taxpayer for transfer to his account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Account for the total amount of the refunds and thereafter issues instructions through clearing to the different local branches of the banks where the taxpayer's accounts are located to credit the taxpayer accounts with the amount intimated by the Department. This single debit to the Department's account appears in the payment (refund) data transmitted by the bank to the Income Tax Department for that day. In case any of these credits to the taxpayer's accounts are not effected due to reasons like closing of the account etc., the same is later accounted for by a separate minus debit entry for ECS Return in the Income Tax Department's account and is intimated to the Income Tax Department through the payment (refund) data transmitted for that particular day. The files in the electronic media (floppy or rewriteable CD etc.) are returned along with the computer printed payment (refund) scroll to the ZAO while the same data is transmitted online by the bank to the Income Tax Department through the Income Tax Department's Tax Information Network (TIN). 4. Preparation of Payment (Refund) Scrolls 4.1 The procedure for preparation of payment scrolls will be the same as the procedure appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ata in the format prescribed by the Income Tax Department to its Link Cell for onward transmission to the Departments TIN on the same day after giving a common Nodal Branch scroll number and date to all the challan records being transmitted on that day. (b) It will also generate a copy of the summary and main scroll based on the computer data in a floppy or other media (as informed by ZAO) and transmit it to the ZAO on the next working day. (c) On receipt of the hard copy of the computer-generated Branch scrolls from the collecting branch, the Nodal branch will validate that these computer-generated branch scrolls exactly match the data transmitted earlier by the collecting branches. It will consolidate these computer printed Branch scrolls (with challans) received from all the branches including its own along with the main scroll by stitching the scrolls together Major head-wise. It will also generate a computer printout of the Major head-wise main scrolls and Summary. It will then forward these (with challans) to the ZAO concerned on a daily basis. (d) Second set of scroll prepared in the same manner without challans as discussed at (c) above will be retained by the Nodal b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich in turn will make a daily settlement with RBI, CAS, Nagpur. 7.3 The Link Cell of banks at Nagpur will consolidate the challan data received from the Nodal Branch for transmission to the Department's Tax Information Network (TIN) and will also monitor the daily receipts and check the accuracy of the daily memos received from the Nodal Branches. The Link Cell will then transmit the daily memos to CAS, RBI, Nagpur. 7.4 The Nodal Branches of the banks will carry out monthly reconciliation with ZAOs of the amount settled by them with their Link Cell at Nagpur. On the basis of their records the ZAOs will verify the statements received from the Nodal Branches both major head-wise and Nodal Bank-wise. In case of any discrepancy, the Nodal Branch will carry out the corrections immediately and adjust the difference in the amount already credited/debited to the CBDT's account through its Link Cell at Nagpur under information to the ZAO. 7.5 For the purpose of final reconciliation of the transactions with ZAOs and the Link Cell, the CAS, RBI, Nagpur will generate a monthly statement and furnish the same to ZAO and the Link Cell of the banks. RBI, CAS, Nagpur will furnish by 20th of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rch or March Residual Transactions" in the current financial year. 9.4 While reporting to their Link Cell in Nagpur, the Nodal banks should send two sets of figures distinctly showing March Residual and April Transactions separately upto 15th April. 9.5 The date-wise monthly statements should also be prepared in two sets, one pertaining to March Residual Transactions and another relating to April Transactions. 10. Special arrangements during the month of March every year 10.1 The branches should follow the procedure explained in the earlier paragraphs meticulously and ensure that the collections made towards direct taxes are passed on promptly for credit to Government Account through the Nodal Branch/Link Cell. However, during the second fortnight of March every year, wherever the receiving branches and Nodal branch are situated locally, a special messenger system should be introduced by the receiving branches. All efforts may also be made to provide the collection figures on daily basis to the ZAO during the second fortnight of June, September and December every year, for onward transmission to the Government for monitoring, estimates etc. 11. Monitoring Committee - holding o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... records by reading the error file and generates a new file consisting valid records only with auto-generated RT04 records. This correct file can be uploaded to OLTAS site. All the rejected records are separated and kept in other file for your reference. Functionality 2. When you open the SPECIAL FVU.exe file a utility will be seen as below. The utility contains name of utility at the top, buttons for minimizing and closing the utility, four text fields and four buttons named "Browse", a start button and a cancel button. A copyright message and version number will also be visible. The user is required to enter valid inputs in all the four text fields described below. A. Input Base File : Give the full file path of the base file. This base file is the file which has got rejected due to some errors. You can select the file by clicking on browse button. It will show you an 'open' box as displayed below (Figure 2). Browse to the required folder, select the file and then click open. Input file name should be in "ddmmyyfv.bnk" format only. Figure 2 File extension should contain valid bank code. B. Input Error File : This is the error for the Input base file. (The one selected i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se the utility. ................................................ Annex III Format for Nodal Branch Daily Main Scroll (Receipts) This block (shown above) will be repeated for as many times as no. of tax heads are available. NOTES : (1) The record for one receiving branch should be contained in one line and values must be comma separated. (2) Carriage return or linefeed [i.e., ENTER KEY ()] indicates the end of the record for one receiving branch. (3) Sequence of block (majhd, amt, no_challan) is not necessary but increasing order is preferable. (4) Example : 30/11/2005, 0230001, 25/11/2005, 6600, 22, PNE, 0020, 200, 2, 0021, 100, 1, 0024, 300, 4, 0026, 400, 2, 0031, 500, 1, 0032, 600, 2, 0033, 700, 1, 0034, 800, 1, 0070, 900, 1, 0036, 1100, 5 Detailed example 13/11/2005, 0000455, 12/11/2005, 5775, 18, PNE, 0020, 1525, 6, 0021, 200, 2, 0023, 100, 1, 0026, 300, 2, 0031, 600, 1, 0032, 750, 2, 0033, 550, 1, 0034, 800, 2, 0070, 950, 1 13/11/2005, 0003861, 12/11/2005, 9950, 17, PNE, 0020, 3500, 5, 0020, 2250, 3, 0023, 300, 1, 0026, 400, 1, 0031, 500, 1, 0033, 600, 2, 0032, 700, 1, 0034, 800, 2, 0070, 900, 1 13/11/2005, 0004618, 11/11/2005, 640112, 22, PNE, 0020, 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 26 DGBA.GAD.No.3278-3311/42.01.034/2004-05, dated Dec. 31, 2004 Abolition of Sub-Agency Arrange- ments for Collection of CBDT Dues - OLTAS 8. RBI/2005/406 DGBA.GAD.5236/42.01.034/2004-2005, dated March 29, 2005 On-line Tax Accounting System (OLTAS)-Funds Settlement - Reporting to RBI, CAS Nagpur 9. RBI/2005/466 DGBA.GAD.No.H.5801/42.01.034/2004-05, dated May 13, 2005 On-line Tax Accounting System 10. DGBA.GAD.No.H- 1169/42.01.034/2003-04, dated May 22, 2004 Accounting Procedure Relating to On-Line Tax Accounting System (OLTAS) - Clarifications 11. RBI/2004/181 DGBA.GAD.No.H-235/42.01.034/2004-05, dated September 15, 2004 On-line Tax Accounting System (OLTAS) - Participation of Branches 12. RBI/2004/164 DGBA.GAD.No.H-170/42.01.034/2003-04, September 4, 2004 Critical Issues regarding data capture of OLTAS data by bank 13. RBI/2005/411 DGBA.GAD.No.H-5287/42.01.034/2004-05, dated April 1, 2005 Tax Accounting System (OLTAS) - Accounting Procedure relating to crediting of CBDT collections to Govt. Account 14. RBI 2005/412 DGBA.GAD.No.H 5318/42.01.034/2004-05, April 4, 2005 De-authorisation of bank branches for collection of Direct Taxes 15. RBI/2005/81 DGBA GAD No ..... X X X X Extracts X X X X X X X X Extracts X X X X
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