Rule 10 - Date of Payment
Original Rule Text
10. Date of receipt of Government revenues, dues, etc.,–(1) Government dues tendered in the form of a cheque or demand draft or money order or postal order, which is accepted and honoured on presentation, shall be deemed to have been paid,-
(a) where the cheque or demand draft or postal order is tendered to the bank or post office, on the date on which it was cleared and entered in the receipt scroll;
(b) where a cheque or demand draft or postal order is tendered to a departmental officer (in cases where such tendering is permissible or required under departmental provisions), on the third working day after its presentation;
(c) if the money is paid by post and sent by post in pursuance of instructions to make payment by post, on the date on which the cover containing it is put into the post;
(d) if the money is paid by postal money order or any other recognised mode of remitting money by post in pursuance of instructions of the Government, on the date on which the money order is put into the post:
Provided that, where a cheque or draft is marked as not payable before a certain date, the payment shall not be deemed to have been made until the date on which it becomes payable.
(2) The Government revenues, dues etc., paid through electronic mode shall be deemed to have been paid to the Government on the date, it is received and entered in the receipt scroll by the bank of the department for crediting the money to the Government Account at the Reserve Bank.
(3) The period of delay for claiming penal interest from the authorised bank shall be calculated from the date of realisation of cheque or demand draft to the date prior to the day of the put through to Reserve Bank.
Explanation.– For the purposes of this rule, ‘put through’ refers to the credit of the amount into Government Account in the Reserve Bank.
What This Means
Rule 10 of the Receipt and Payment Rules defines the 'date of payment' in various scenarios, which is crucial for accounting and record-keeping in government transactions. Essentially, it clarifies when a payment is officially considered made, regardless of when the money actually reaches the recipient. This rule is important for both government employees handling finances and citizens making payments to the government. It ensures fairness and transparency in financial dealings by establishing a clear timeline for when a payment obligation is considered fulfilled.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Defines the 'date of payment' for government transactions.
- 2Specifies different dates based on the mode of payment (cheque, DD, postal order, money order, etc.).
- 3For cheques/DDs tendered to a bank/post office, the date of clearance is the date of payment.
- 4For cheques/DDs tendered to a departmental officer, the date of payment is the third working day after presentation.
- 5For payments made by post as per instructions, the date of posting is the date of payment.
Practical Example
Mr. Sharma, a government employee, needs to pay his income tax of ₹10,000. He sends a demand draft through the post office as per the Income Tax Department's instructions. He posts the demand draft on October 20th. According to Rule 10(c), the date of payment is considered to be October 20th, even though the Income Tax Department might not receive the draft until a few days later. Similarly, if Ms. Verma submits a cheque to the designated bank on November 5th, and the cheque clears on November 7th, then November 7th is considered the date of payment as per Rule 10(a).
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What happens if a cheque bounces? Is the original date of presentation still considered the date of payment?▼
If I pay through an online portal, does Rule 10 still apply?▼
Why is it important to know the 'date of payment' as defined by Rule 10?▼
If a departmental officer receives a DD on a Friday, what is the date of payment?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Test Your Knowledge
Question 1 of 3
According to Rule 10 of the Receipt and Payment Rules, when a cheque is tendered to a bank for payment to the government, the 'date of payment' is considered to be: