Para 15.20 — CAM
Original Rule Text
15.20 ACCOUNTING OF MARCH TRANSACTIONS
15.20.1 Reserve Bank Central Office, Mumbai will issue in the month of February each year special instructions to all banks collecting direct taxes regarding the procedure to be adopted in accounting the March transactions.
15.20.2 The Authorized banks will be receiving scrolls relating to last days of March of the previous Financial Year in April. In order to account for the entire collections of March in the same financial year the e-FPBs have to follow the following procedure during the month of April.
15.20.3 The e-FPBs have to prepare two sets of separate scrolls - one pertaining to March residual collections (payments realized from taxpayer’s account before 31st March) and another for April transactions during the first 10 days in April. They should ensure that all tax collections made by the receiving branches upto 31st March are accounted as “March Residual Transactions” and should not be mixed up with the transactions of April. The main scrolls for March transactions prepared from 1st to 10th April are to be distinctly marked as “March Residual”.
15.20.4 The e-FPBs should send two sets of figures distinctly showing March Residual and April Transactions separately upto 10th April.
15.20.5 The date-wise monthly statements should also be prepared in two sets, one pertaining to March Residual Transactions and another relating to April Transactions.
15.20.6 The timelines for the reporting of “March Residual Transactions” in the month of April of the following financial year is (currently prescribed as 10th of April) decided by the O/o of the CGA in consultation with RBI from time to time.
Sample copy of Challan for collection of Direct Tax (ITNS 280)
Sample copy of challan for collection for TDS/TCS
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TIMELINES FOR SETTLING OF MOES UNDER TIN 2.0 Para no. Of TIN 2.0 document. Type of error. Action to be taken by Whom. Matter to be taken up with. Proposed No of days within which MOE to be sorted. 1 2 3 4 5 6 1 Transaction reported to TIN 2.0 by banks but not reported to RBI/ O/o PCCA, CBDT (Para 123, 124 to 134 of TIN 2.0 document) (Pertains to Para 26, 97,111,123,124 and 134 of TIN 2.0 document.) A Para 122 of TIN 2.0 document. CIN reported to TIN 2.0 but not included in bank’s e – scroll & luggage file MOE to be generated by O/o PCCA, CBDT Bank MOE day + 2 working days B Transaction reported by bank to RBI & O/o PCCA, but not to TIN 2.0 (CIN included in bank’s e scroll/luggage file but CIN not reported to TIN 2.0) No MOE needed c I.If CIN data does not match with TIN 2.0 data at all, these kind of discrepancy can occur in: 1. PAN/TAN no. 2. Assessment year. 3. Major Minor head 4. Amount break up II.Or without CIN, e scroll have come. III.Or incorrect CIN, e scroll have come. O/o PPCA will not get e-scroll, so it will reconcile with TIN 2.0/ RBI notifications and create MOE and issue to bank For II AND III MOE issued by O/o PCCA Bank MOE day + 2 working days MOE day + 2 working days 2 Cases where CIN is shared with the tax payers but there is no data flow from bank to
What This Means
Special procedures apply to accounting for March transactions to ensure all collections made before March 31 are booked in the same financial year, even if scrolls are received in April. During the first 10 days of April, e-FPBs must prepare two separate sets of scrolls: one for 'March Residual' collections (payments realized before March 31) and another for April transactions. Date-wise monthly statements must also be prepared in two sets. Detailed timelines for settling Memoranda of Errors (MoEs) under TIN 2.0 are prescribed, with specific responsibilities assigned to banks, RBI, TIN 2.0, and the Pr. CCA.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1RBI issues special February instructions each year for March transaction accounting
- 2e-FPBs must prepare two separate sets of scrolls in early April: March Residual and April transactions
- 3March Residual includes all tax collections realized from taxpayer accounts before March 31
- 4The timeline for March Residual reporting (currently 10th April) is decided by CGA in consultation with RBI
- 5MoE settlement timelines under TIN 2.0 range from same-day to MOE day + 2 working days depending on error type
Practical Example
A taxpayer pays advance tax on March 30 (a Friday). The bank branch collects the payment, but the e-FPB cannot process the scroll until April 1 (Monday). The e-FPB marks this as a 'March Residual' transaction, prepares a separate scroll clearly marked as such, and ensures it is not mixed with April 1 transactions. Both sets are sent to the ZAO and Pr. CCA by April 10, allowing the March payment to be correctly booked in the closing financial year's accounts.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why are March transactions handled differently?▼
What is a Memorandum of Error (MoE) under TIN 2.0?▼
What penalty applies to banks for delayed settlement of March transactions?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.