Para 15.14 — CAM
Original Rule Text
15.14 ACCOUNTING SYSTEM
15.14.1 The accounting Major Heads of Direct taxes as per LMMHA shall be used along with underlying minor heads, sub-heads/detailed heads opened as per the existing procedures, to account for direct taxes. The list of Major Heads related to direct taxes is as follows:
Major Head Description Major Head Description 0020 Corporation Tax 0031 Misc Tax Receipt 0021 Taxes on Income (IncomeTax) other than Corporation Tax 0032 Taxes on Wealth 0023 Hotel Receipt Tax 0034 Securities Transaction Tax 0024 Interest Tax 0036 Commodity Transaction Tax 0026 Fringe Benefit Tax 0045 Other Taxes and Duties on Commodities & Services 0028 Other Taxes on Income and Exp.
15.14.2 The accounting entries are automated in PRAKALP (ZAO wise) on receiving of Scrolls along with CINs:
I.From Public Sector Banks
8658.00.108 Dr. Functional Head under concerned Major Head Cr.
8658.00.138 Dr. Functional Head under concerned Major Head Cr.
8675.00.101 Dr. Functional Head under concerned Major Head Cr.
What This Means
Direct taxes are accounted under specific Major Heads prescribed in the LMMHA, such as 0020 (Corporation Tax), 0021 (Income Tax), 0034 (Securities Transaction Tax), and others. The accounting entries in PRAKALP are automated at the ZAO level upon receipt of scrolls along with CINs from banks. Different suspense heads (8658.00.108 for PSBs and 8658.00.138 for private banks) are used as intermediaries before final clearance through 8675 (Deposits with RBI).
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Direct tax revenue is booked under specific Major Heads: 0020 (Corp Tax), 0021 (Income Tax), 0034 (STT), 0036 (CTT), etc.
- 2Accounting entries are automated in PRAKALP on a ZAO-wise basis upon receipt of scrolls with CINs
- 3PSB collections flow through 8658.00.108 (Public Sector Bank Suspense)
- 4Private bank collections flow through 8658.00.138 (Other Nominated Banks Suspense)
- 5RBI put-through entries go through 8675.00.101 (Deposits with RBI)
Practical Example
A company pays Rs 5 crore in advance corporation tax through HDFC Bank (a private sector authorized bank). When the ZAO receives the e-scroll with the CIN, PRAKALP automatically records: Debit 8658.00.138 (Private Bank Suspense) and Credit the functional head under MH 0020 (Corporation Tax). When RBI confirms the put-through, the entry is: Debit 8675.00.101 and Credit (minus debit) 8658.00.138.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What are the main Major Heads for direct tax accounting?▼
Why are there separate suspense heads for public and private sector banks?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.