Para 15.19 — CAM

15.19 PERSONAL DEPOSIT ACCOUNTS

15.19.1 Under the Income Tax Rules, Personal Deposit (PD) Accounts are maintained with specified branches of the accredited bank or the RBI offices, for depositing money seized from persons suspected of Tax Evasion. The Tax amount in the P.D. Account is transferred to the RBI, CAS, Nagpur on a daily basis for credit to the Government Account and the balance in these accounts is only a notional balance.

15.19.2 The delay in transferring the amounts under the PD Account to the Government account attracts penal interest at the same rate as in case of delayed remittance of direct tax collections to Government account.

15.19.3 Repayments are also made from this account by the PD Account holder by issuing cheques which are supplied by the ZAO. Separate receipt and payment scrolls are prepared and sent to the ZAO (along with paid cheques/challans). Copies of the scrolls are sent to the account holder.

15.19.4 The bank maintaining the P.D. Account, prepares, at the end of every month, a monthly statement showing

(i) Opening balance;

(ii) total receipts;

(iii) total payments; and

(iv) Closing balance. Three copies of the statements are sent to the ZAO and one copy is sent to the Account holder by the 5th of the following month. (No copy of the scroll/statement is sent to the Designated Officers).

15.19.5 The ZAO verifies the statement with reference to the receipts and payments scrolls and returns one copy to the Bank (after recording the certificate of verification thereon over his signature).

15.19.6 The receipts and payments as per scrolls are booked by the ZAO under the head '8443- Civil Deposits-Personal Deposits' by contra debit/credit to the head '8658 Suspense Accounts108-Public Sector Bank Suspense / 138- Other Nominated (Private Sector) Bank Suspense'.

15.19.7 In the case of transactions arising at RBI Offices the contra adjustments are made under the head '8675-Deposits with Reserve Bank'. The head PSB Suspense is cleared on receipt of the monthly account from the RBI, CAS, Nagpur, by the office of the Pr.CCA,CBDT by per contra adjustment under the major head '8675-Deposits with Reserve Bank'. However, only the net effect under '8675-Deposits with Reserve Bank' will be posted as debit/minus debit in the Revenue Account (depending upon whether the net receipts are more or less than the refunds).

What This Means

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

• 1PD Accounts hold money seized from suspected tax evaders at specified bank branches or RBI offices
• 2Seized amounts must be transferred daily to RBI CAS Nagpur — any delay attracts penal interest
• 3The PD Account balance is only notional since amounts are transferred to government account daily
• 4ZAO books transactions under MH 8443 (Civil Deposits - Personal Deposits) with contra entries to MH 8658 or 8675
• 5Banks send monthly statements (opening balance, receipts, payments, closing balance) to ZAO by the 5th of the following month

Practical Example

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.