Para 8.16 — CAM
Original Rule Text
8.16 ARRANGEMENTS FOR CREDIT TO CENTRAL GOVERNMENT OF INCOME TAX DEDUCTED AT SOURCE (TDS) FROM THE SALARY AND OTHER BILLS OF STATE GOVERNMENTS.
8.16.1 The income tax recoveries will be effected from the bills paid by treasuries/State Government Pay and Accounts Officers/other State Government departmental offices rendering compiled accounts to the AG. They shall be classified under the Minor head "TDS Suspense" below the Major head "8658 Suspense Accounts" in the State Section of accounts. The credit to this head has to be afforded by transfer credit at the time of recording pay order, as per the provisions of Article 19 of Accounting Rules for Treasuries, 1992. These offices should also maintain details of credit to the suspense head as above under the various major, minor and detailed heads of account relating to deductions of income tax at source like "0020","0021", etc.
8.16.2 The AG, will consolidate the amounts thus shown under TDS Suspense by these authorities for the State Circle as a whole, on monthly basis. A cheque for the total amount booked under TDS Suspense shall be sent by him along with the treasury wise break up of TDS on closing the monthly accounts, to the concerned Zonal Pay and Accounts Officer. The AG will provide DDO wise quarterly information regarding TDS to the ZAO in the format prescribed in " TDS Book Adjustment Form" in soft copy for uploading to the Tax Information Network. The DDOs of the State Governments will also furnish quarterly returns in Form 24-Q and 26-Q to the Income Tax Department. On receipt of the cheque and its realization through the accredited bank, the Zonal Pay and Accounts Officer of the CBDT will straightaway classify the credits to the relevant major, minor and sub-heads of accounts on monthly basis. He will upload credits in TDS Book Adjustment Form in Tax Information Network on quarterly basis. This will be done on the basis of O.M. No. 1(1)/2003/TA/Part-I (3)/706-08 dated 29th October, 2005.
8.16.3 Accounting of income tax deducted at source out of interest on Central Government securities paid at State treasuries.
Payment of interest on Central Government securities can take place at State treasuries even after departmentalization of Union Government Accounts (Civil). The claim for reimbursement on account of this payment shall be prepared by the AG on net basis, i.e. after deduction of income tax deducted at source. The Principal Accounts Office, DEA,MoF shall effect the settlement of such claims. The AG is required to furnish the following information to the Principal Accounts Office, DEA,MoF:
a. Gross amount of the interest paid; b. Amount of income tax etc. deducted from such payment; and c. Net amount for which claim is preferred.
What This Means
This paragraph describes the arrangements for crediting income tax deducted at source (TDS) from the salary and other bills of State Governments to the Central Government. State Government treasuries and PAOs deduct TDS from bills and classify it under 'TDS Suspense' below Major Head '8658 Suspense Accounts' in the State Section. Periodically, the State AG compiles these amounts and arranges transfer to the Central Government through the Zonal PAO of CBDT. The procedure ensures that TDS collected by State Governments on behalf of the Central Government is properly accounted for and credited to the income tax revenue of the Union.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1TDS from State Government bills is initially classified under 'TDS Suspense' (Major Head 8658)
- 2State AGs compile and transfer TDS amounts to Central Government
- 3Credit goes to the Zonal PAO of CBDT for final accounting
- 4Ensures Union income tax revenue reflects TDS collected by States on Central Government's behalf
- 5Both Treasury and State PAO deductions follow the same classification
Practical Example
A State Government treasury in Gujarat deducts Rs. 50,000 as TDS from a contractor's bill paid from State funds. The amount is booked under 'TDS Suspense' in the State Section of accounts. At the end of the quarter, the AG Gujarat compiles all such TDS amounts and transfers the consolidated figure to the Zonal PAO of CBDT, who credits it to the Union's income tax revenue head.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why is TDS by States classified under a suspense head initially?▼
Who is the Zonal PAO of CBDT?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.