Rule 13 — General Financial Rules 2017 (amended July 2024) - Rule 13
Original Rule Text
Rule 13
Unless specially authorized by any rule or
order made by competent authority, no
sums shall be credited as revenue by
debit to a suspense head. The credit
must follow and not precede actual
realization.
What This Means
This rule explains how government departments should record their income, also known as revenue. In simple terms, you cannot officially show money as received income if it hasn't actually come into the government's hands yet. You are also generally not allowed to use a temporary holding account, called a 'suspense head,' to make it appear that revenue has been collected when the actual funds haven't been received.
The core principle is that the government's financial records must always reflect the true state of affairs. Income should only be officially recorded and shown as revenue *after* the actual money has been received, whether it's cash, a cheque that has successfully cleared, or a direct bank transfer. You cannot record it beforehand, even if you are expecting the money soon.
There is a very specific exception: if a particular rule or a senior officer (known as a 'competent authority') has given special, explicit permission, then you might be allowed to record revenue differently. However, the general and strict rule is clear: actual money must be in hand first, and only then can it be recorded as revenue. This rule is crucial for maintaining transparency and accuracy in government accounting.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Government revenue must only be recorded after the actual funds have been physically received and realized.
- 2It is generally prohibited to credit sums as revenue by debiting a temporary 'suspense head' account.
- 3The act of recording revenue must always happen *after* the money has been received, not before.
- 4Any exceptions to this rule require specific, explicit authorization from a competent authority or a special rule.
- 5This rule is essential for ensuring accuracy and preventing the artificial inflation of revenue figures in government accounts.
Practical Example
Imagine the Municipal Corporation of Bengaluru is responsible for collecting property taxes. On March 29th, 2024, a property owner, Mr. Rajesh Kumar, submits a cheque for ₹75,000 towards his annual property tax. The accounts clerk, Ms. Deepa, receives the cheque. According to Rule 13, Ms. Deepa cannot immediately record this ₹75,000 as 'Property Tax Revenue' for the financial year ending March 31st.
Instead, she must wait until the cheque is deposited into the Municipal Corporation's bank account and has successfully cleared, meaning the funds are actually available to the government. If the cheque clears on April 3rd, 2024, then and only then can she officially credit ₹75,000 as revenue. She cannot, for instance, debit a temporary 'Cheques Received - Pending Clearance' suspense account and simultaneously credit the revenue head on March 29th to show higher revenue for the financial year closing on March 31st. The actual realization of funds dictates when the revenue can be booked, ensuring it's accounted for in the correct financial year.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
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This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.