Para 15.15 — CAM
Original Rule Text
15.15 RECONCILIATION BY O/O PR. CCA, CBDT:
15.15.1 The objective of the reconciliation is to ensure matching of the following:
• Tax paid by the taxpayer; • Tax credit given by TIN 2.0 to taxpayer; and, • Amount credited to direct tax account of Government of India by the RBI
CCA, CBDT will have information from three sources viz. TIN 2.0, Banks and RBI.
15.15.3 The source of reliable data regarding attributes of Challan shall be the CIN details provided by TIN 2.0 to O/o Pr. CCA, CBDT. CIN information provided by TIN 2.0 to O/o Pr. CCA, CBDT shall correspond to the tax credit given by TIN 2.0 to taxpayer, while Credit Notifications provided by RBI to O/o Pr. CCA, CBDT shall be actual tax receipts credited in the direct tax account of Government of India.
15.15.4 Presently, O/o Pr. CCA, CBDT manually feeds ZAO wise Put Through data in PFMS. The accounting entries on receiving of Put Through Statement from RBI at Pr. CCA, CBDT is as follows:
For Direct Tax collected by Public/Private Sector Banks
8675.00.101 Dr. 8658.00.108/138 (-) Dr.
15.15.5 The above mentioned process shows that the accounting and reconciliation of direct taxes is carried out through a hybrid mechanism; first the Scroll data is received in PRAKALP, then the data is pushed to PFMS where the Put Through amount is fed and finally the detailed data is pushed to e-Lekha.
15.15.6 The interest, penalty, fees or other charges, if any, under Direct tax needs to be accounted for separately. Hence, they would be reflected under separate heads in the Tax Payment Challan. All relevant information present on the prescribed RPR 7 challan (or as
prescribed) shall be captured and become part of the information being shared with O/o Pr. CCA, CBDT by Agency Banks/TIN2.0.
15.15.7 The IT audit of the process flows and settlement of funds by the e-FPBs may be conducted periodically by a CERT-IN empanelled agency selected by the office of Pr. CCA, CBDT so as to ensure safety, integrity and correctness of revenue collections systems and process.
15.15.8 The key Id for information exchange with Authorized banks, RBI & O/o Pr. CCA, CBDT is the unique Id generated by TIN 2.0, i.e., CRN. Once the payment has been made by the taxpayer and CIN is generated and reported by the recipient bank, CIN which has CRN embedded therein would be used as key Id in subsequent stages. CIN is recommended to be used as a key Id as it is the sole indicator of the receipt of actual payment. Similarly, the transaction reported by RBI for the funds flow (credit) to government accounts through Credit Notifications forms the basis for accounting as it reflects the actual credit in the Government Account.
What This Means
The Pr. CCA, CBDT carries out three-way reconciliation to ensure that (1) the tax actually paid by taxpayers, (2) the tax credit given by TIN 2.0, and (3) the amount credited to the government's direct tax account at RBI all match. Data comes from TIN 2.0, authorized banks, and RBI. The CIN from TIN 2.0 is the reliable source for challan attributes. ZAOs must maintain broadsheets of PSB Suspense, track outstanding items, and prepare bank reconciliation reports in CAM 88 format within 3 days of receiving RBI statements. Interest and penalties under direct tax must be accounted separately.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Three-way reconciliation: taxpayer payment vs. TIN 2.0 tax credit vs. RBI government account credit
- 2CIN details from TIN 2.0 are the authoritative source for challan information
- 3ZAOs must maintain broadsheets of PSB/Private Bank Suspense and perform age-wise analysis of outstanding balances
- 4Items outstanding under PSB Suspense for more than two months are classified as old outstanding
- 5Bank reconciliation report in CAM 88 format must be sent to the Principal Accounts Office within 3 days of receiving RBI Statement No. 2
Practical Example
A ZAO finds that its PSB Suspense broadsheet shows Rs 2.3 crore outstanding for more than two months. On investigation, it discovers that three e-FPBs had reported collections to TIN 2.0 but failed to include them in the luggage files sent to RBI. Automated Memoranda of Errors (MoEs) are generated, the banks rectify the discrepancies within the prescribed timeline, and the ZAO clears the outstanding amounts. The reconciliation is reflected in the CAM 88 report sent to the Principal Accounts Office.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is the significance of the CIN in reconciliation?▼
What happens when amounts remain unreconciled?▼
What is the CAM 88 format used for?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.