Para 12.25 — MSO (A&E)
Original Rule Text
12.25 The receipt of Policies, in cases where first withdrawals are authorised on acceptance of a proposal by Insurance Company, and of Premium Receipts in the case of gazetted subscribers, should be watched by the Accounts Officer through a suitable Register. All premium receipts of gazetted subscribers should be endorsed by the Accounts Officer with the words "No abatement of India Income-tax is admissible" with a view to safeguard Government from double exemption from Income-tax. In respect of non-gazetted subscribers and those gazetted subscribers who draw their pay from the department, the Head of Office should at the time of withdrawal of premium by a subscriber, furnish a certificate to the effect that he is satisfied that the amount previously withdrawn on the same account by the subscriber has been utilised for the purpose for which it was intended and that the necessary premium receipt has been duly enfaced by him.
NOTE:- Under the G.P.F. (Central Services) Rules 1960, no further policies are to be accepted for being financed from the Provident Fund after the date of publication of these rules viz. 17-12- 1960. Similar orders might have been issued by other States also.
What This Means
The Accounts Officer must track the receipt of insurance policies (where the first withdrawal was authorised on proposal acceptance) and premium receipts for gazetted subscribers through a suitable register. All premium receipts of gazetted subscribers must be endorsed with 'No abatement of India Income-tax is admissible' to prevent double tax exemption. For non-gazetted subscribers, the Head of Office must certify at each premium withdrawal that the previous withdrawal was used for its intended purpose and the premium receipt has been enfaced.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Policy receipt and premium receipts tracked through a register
- 2Gazetted subscribers' premium receipts must be endorsed against double income-tax exemption
- 3Head of Office certifies utilisation of previous withdrawals for non-gazetted staff
- 4Under GPF (Central Services) Rules 1960, no new policies accepted for PF financing after 17 Dec 1960
- 5Similar restrictions may apply in states
Practical Example
A gazetted officer submits his annual LIC premium receipt of Rs 30,000 to the AG's office. The Accounts Officer endorses the receipt with 'No abatement of India Income-tax is admissible' and records its receipt in the tracking register. This endorsement prevents the officer from claiming the same premium as a tax deduction elsewhere, since the premium was paid from PF (which already gets tax benefits).
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 premium receipts endorsed against income-tax abatement?▼
What certificate must the Head of Office provide for non-gazetted subscribers?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.