Computerisation in Office Management

INCOME-TAX

SECTION – 1

COMPUTERISATION IN OFFICE MANAGEMENT

1.1 The tax base is increasing by over 20% per annum and is poised to double
every 3 to 4 years. The total workforce stands fixed after restructuring in the
year 2000. The statutory time-limits for processing of returns, re-opening,
etc., have been reduced. Therefore, larger volumes have to be handled in
shorter time by fixed manpower strength. These daunting challenges cannot
be met except through full Computerisation at the earliest. Income-tax offices
are spread over 480 locations. Computerisation in Income Tax Department
involves establishing large infrastructure besides bringing major changes in
work processes, and mind set. The Income Tax Act itself is a complicated
piece of legislation which undergoes changes every year for various reasons.
Our functions are diverse, accounting tax collections, processing of returns,
issuing refunds, collecting/matching and following up large volume of
information. It also involves inculcation of new work practices, and work
culture – indeed, a new mindset. Such a change can be unsettling. Therefore,
it is necessary that the issues involved are understood by all officers and staff
so as to accept, implement adopt and sustain this change. Computerisation
will eliminate repetitive work, allow easier storage/retrieval of information,
introduce transparency and objectivity in decision-making processes, while
enabling supervisory officers to better manage and monitor the workload
through appropriate Management Information Systems.

1.2 In order to achieve these objectives, the Comprehensive Computerisation Plan

envisaged setting up an All-India network of computers interconnected
through large Server systems at Regional Computer Centres to a National
Computer Centre so as to create All-India databases using uniform and
integrated application software. This required large computer infrastructure,
viz., PCs for the officers, networking of these through leased lines, and
development of application software to automate the departmental processes.
This also needed to set up a Taxpayers Identification System to identify
taxpayers by a unique number instead of name. For this PAN had to be
implemented before Computerisation of other processes could proceed.

SECTION – 2

ELEMENTS IN COMPUTERISED ENVIRONMENT OF WORKING

2.1 Hardware
2.1.1 PCs with officers and other users: PCs along with printers and UPS/CTV
have been provided to all officers, and some other users such as those at the
Computer Centres and Terminal Banks. It is proposed to provide one PC for
the staff of each Assessing Officers. It is also proposed to provide PCs to
P.S.s, Senior P.A.s and P.A.s of officers of the level of Additional
Commissioners and above. All personal computers can be operated either as
Terminal/Node connected to a Network where it directly executes application

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Software from its own hard disk or floppy disk and uses own resources, e.g.,
word processing. A list of precautions while using PCs is given in
Annexure-I.

2.1.2 The Annual Maintenance Contracts for the maintenance of these machines and
other non-critical computer equipment has been decentralised to the Chief
Commissioners and the CITs (CO). The users must familiarise themselves
with general maintenance requirements of these machines, as also with the
procedure to be followed for lodging complaints relating to breakdown and
other types of malfunctioning, the persons to be contacted and the records to
be maintained in this regard. Preventive maintenance is carried out
periodically (at least once in a quarter) by the AMC vendor.

2.1.3 Shifting of PCs: PCs, Printers & CVTs should not be shifted by users from
one room to another or from the Terminal Banks without the knowledge of the
CIT (CO) or the Additional/Joint CIT (Systems) or Nodal Officer or the
hardware vendor. Since the PCs on network have certain software like
Oracle–Developer 2000 installed on them to enable the users to work on the
various application software, unauthorised shifting may cause problems, such
as:

i. The new PC may not have Oracle Developer 2000 to enable the user to
work on application software like AIS, AST, IRLA, EFS, etc.
ii. PCs having Windows 2000 will not work with the application software
which is at present only enabled for Windows 95/98.
iii. PCs may not be connected on the network; and
iv. The new machine may not be configured as Netware Client for Netware
Connectivity. Further, after installation of Developer/2000, the client PC
is required to be configured for SQL*Net for Oracle level connectivity.

2.2.1 Damage to computer systems due to faulty power supply: One of the major
reasons for failure of the hard disk is the improper power supply which may be
due to:

i. Improper earthing
ii. Leakage in power outlets
iii. Loose electrical connections
iv. Faulty or improper MCB
v. Overloading of UPS, etc.

In order to avoid such failure and the consequential data loss, weekly
inspection of power supply equipment and power outlets should be carried out.
The power supply should be monitored at regular intervals through the CPWD
in close co-ordination with the concerned vendors of UPS and other hardware.

2.2.2 Uninterrupted power supply system (UPS Systems): The UPS is an

alternative power supply system designed to provide clean electrical power to
the data processing equipment/peripherals and similar devices, which requires
transient free AC power. It consists of battery charger and solid state inverter.
An internal alarm and visual indicators constantly provide the status of UPS

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system to the user. The purpose of providing UPS is to ensure that the user is
able to save and close his ongoing work in an orderly manner. This is because
generally the battery back up of the UPS is for 15 to 30 minutes only.

2.3 Terminal banks: At some stations terminal banks of PCs have been set up
and connected to the network for allowing members of staff to work on the
customised software. These Terminal Banks have been provided an Intel
Server, 20 or 40 Personal Computer Systems, Router, Switch(es), Hub(s),
ASM-20 modem, and UPS. The main functions of these are—

To provide LAN connectivity to the PCs;

To provide WAN connectivity for the PCs to RCC;
To keep program executables of various Application Software, etc.;
To store intermediary data in respect of certain Application Systems such as
AST, TDS, etc., for subsequent upload to database of respective RCC;
To facilitate data entry and processing by the staff of various AOs posted in
respective buildings.

2.4 Local building servers: Intel Servers (also known as Local Building Servers)
have been provided in various buildings on the Income-tax network in
different cities for the following purposes—

i. Provide LAN connectivity to the PCs;

ii. Provide WAN connectivity for the PCs to RCC;
iii. To keep program executables of various Application Systems such as AIS,
AST, TDS, etc.;
iv. To store intermediary data in respect of certain Application Systems such as
AST, TDS, etc., for subsequent upload to database of respective RCC.

These enable the users in these buildings to make data entry and perform
certain other processes without connecting to the RCC server, thereby
decongesting the traffic on the network and the users concurrently logging in
the RCC server.

2.5 Network links

2.5.1 Local Area Networks (LAN) is a Data Communication System which allows
Servers and PCs to communicate with each other within a limited area say a
floor, or a building, etc. Network involves physical connection of the various
components e.g., Terminals, Servers and Communication Links in a network.
Networks are usually classified as either Local Area Networks (LANs) or
Wide Area Networks (WANs). Terminals within a building or in buildings
within close geographic area are connected through Local Area Networks.
The number of users connected through LAN differs from building to
building. However, a LAN can cover distances of several miles and connect
hundreds of users. LANs are capable of voice and video transmissions, as
well as data communications. The PC-based workstations connected to a
LAN are called nodes.

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2.5.2 Wide Area Networks (WAN): When networks exceed the geographic
limitations of the LAN, they are called Wide Area Networks. Because of the
distances involved and high cost of interconnections, WANs employ common
communication links such as telephone lines and microwave channels between
remote nodes. Therefore, WANs are public networks subject to control of
other Government departments/Service Providers. The nodes of a WAN can
include PC based workstations, or servers, or LANs. The users on LAN are
connected to the RCC and NCC through WAN. The Income Tax department
has set up its WAN in 60 cities using dedicated leased data circuits of MTNL
and BSNL. In metro cities the bandwidth of these circuits is 2 Mbps while in
other cities it is 64 Kbps. It is proposed to extend the network to the
remaining cities shortly. Facilities of backup lines through Integrated
Switched Data Network (ISDN) lines have also been provided. The
maintenance of active components of network such as switches, hubs and
routers is centralised with the Directorate of Income Tax (Systems) and CIT
(CO). The management and monitoring of the network including functioning
of the leased lines connecting the network is the responsibility of the CIT
(CO).

2.5.3 Advantage of networks: The main advantage of working through networked

computers is that it allows individual users to access remote Servers for
distributed file storing, remote computing and remote printing. In this way
users can have access and process large data and applications with
comparatively small computing powers on their PCs. Distributed file storing
provides users transparent access to part of the data storage of a remote server.
Distributed file storing provides capabilities such as remote filing and remote
printing. Remote filing allows users to access, retrieve and store files.
Generally remote filing is provided by allowing a user to attach to part of a
remote mass storage device (a file server) as though it were connected
directly. This virtual disk is then used as though it was a disk drive local to
the workstation. Remote computing refers to the concept of running an
application or applications on remote Servers. Remote printing allows users to
print on any printer attached to any component on the LAN.

2.5.4 Network protocol: Since networked computers allow access to vast volumes
of shared data and applications, it is necessary that a certain discipline is
observed by the users on the network to access, modify, store, or copy data in
the interest of security and integrity of the systems. Protocols are a set of rules
specifying the timings, sequencing, formatting and error checking for data
transmissions. Protocols provide standards for data communications.
Protocol is a software residing either in a computer’s memory or in the
memory of a transmission device. It facilitates the physical connection
between network devices. Through protocols, devices are able to identify
themselves to other devices as legitimate network entities and thus initiate a
communication session. The protocol synchronizes the transfer of data
between physical devices. This involves defining the rules of initiating a
message, determining the data transfer rate between devices and
acknowledging message receipts.

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2.6 Security and access control
2.6.1 Password protection: Security features have been provided both at the
Operating System as well as Application Software level through password for
entering into the system. Each user has to take a password for his log-in
account. The System Administrator has all the privileges on the system and
assigns password to the other users. It is important for all users not to share
their password and to keep changing the password word often.
2.6.2 Audit trails: The application software has a system of role and privileges
according to which different types of users are entitled to carry out only
specific types of activities. The software also provides audit trail of important
functions, i.e., the system maintains a complete record of users who have
entered or modified data, based on their access codes and passwords.
2.6.3 Virus protection: A computer virus is a program (or instruction hidden within
a program) that can “infect” files and programs on the computer. Unlike most
other programs, viruses are specifically designed to spread themselves. Some
viruses can display a message or cause erratic screen behaviour. Others are
destructive, erasing or damaging files, or overloading memory and
communications networks. Despite all preventive measures, if a virus does
infect a PC, causing “strange” program behaviour, do not take the program to
another machine to try it. This may spread the virus. If the hard drive is
infected, reformat it, and on all the floppy diskettes containing programs
(including DOS) from the manufacturers’ write-protected diskettes.
2.7 Software
2.7.1 In general terms software refers to a set of instructions that enables the
computer to accept, interpret and process the data and provide results to the
user. In short, software is an interface between the user and the computer.
Software can be either System Software or Application Software.
2.7.2 Operational Software: The Operating System (OS), a type of System
Software, is a collection of Programs that help manage the computer system
itself, e.g., MS-DOS or Windows are Operating Systems. These Operating
Systems essentially perform three functions:
i. Manages the devices, like storage and retrieval of files;
ii. Controls the program execution;
iii. Processes the commands/instructions keyed in.
The PCs in the department use MS–DOS and MS-Windows as the OS. On the
Network, Server Novell Netware or Windows, NT is used as the OS. For
Database Oracle RDBMS, Version 7.x/Developer 2000 is being used with
AIX 4.x as the Operating System and Windows 95/98 on the Client machines.
2.7.3 Application software: The application software can be standard software
available from the market or may have to be developed for the special
requirements of the users. These enable the user to get his tasks done. The
Department uses some standard software package for routine activities like
word processing.

2.7.4 Customised/Special Departmental Application Software: The Department

has also developed nine customised application software for its core functions,
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e.g., AIS (Assessee Information System), AST (Assessment Information
System), etc. Since these are integrated and uniform application software,
these have been utilised on the RCC Servers and can be accessed from the PCs
on the network by bonafide users.

2.8 Maintenance and support services: Maintenance and timely resolution of

complaints are of key importance for proper running of a computerised system
on a countrywide network. Since the various components of the entire system
have been supplied by various Vendors, users often have difficulty in
identifying the nature of the problem and then addressing the complaint to the
AMC vendor. The maintenance of all non-critical equipment has been
decentralised to Chief Commissioners and CITs (CO) who have entered into
AMCs for these. The maintenance of critical equipment, viz., Servers, and
active components of network is centralised with the Directorate of Income
Tax (Systems). The maintenance of network links i.e., the leased lines is
being looked after by the CITs (CO).

2.9 Office layout: Office lay out in a computerised environment should be in

accordance with the work process flow of that office and should conform to
the requirements of ergonomy for higher efficiency. Cubicles or work stations
with glass partitions in open geometrical patterns, modular office furniture,
good lighting, and dust-free air-conditioned environment, separate storage
spaces for temporary and long-term duration, all contribute to higher
efficiency. Power connection, network cabling, computer wiring should be
through concealed ducts/channels preferably with false ceiling or channelled
flooring. For Officers the PCs can be set up in their chambers. Terminal
Banks of PCs should preferably be set up for use by the members of staff.

SECTION – 3

APPLICATION SOFTWARE

3.1 As a part of Comprehensive Computerisation plan the following integrated

application systems have been developed:

i. Initial Permanent Account Number System (IPAN)

ii. Assessee Information System (AIS)
iii. Tax Accounting System (TAS)
iv. Assessment Information System (AST)
v. Individual Running Ledger Account System (IRLA)
vi. Enforcement Information System (EFS) including CIB System
vii. Payroll Accounting System (PAS)
viii. Manpower Management System (MMS)
ix. Financial Resources System (FRS)
x. Physical Resource System (PRS)
xi. Tax Deduction at Source (TDS)
xii. Management Information System (MIS)
xiii. Judicial Reference System (JRS)

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3.2 Features of IPAN application system

3.2.1 The initial PAN Allotment System (IPAN) was developed for (a) one time
PAN allotment to existing assessees all over India, and (b) PAN allotment
during peak periods, for example, at the time of due dates for filing of returns.
The structure of the new PAN is:

AAA S A 9999 C
Where C : Alphabetic check-digit
9999 : Sequential 0. Running from 0001 to 9999
A : First character of the assessee’s name *
S : Status code of the assessee
AAA : Alphabetic series running from AAA to ZZZ

* In case of an individual, assessee’s name is the surname/last name.

* In case of a non-individual, assessee’s name in the full name.

3.2.2 Phonetic Permanent Account Number (PPAN): The Phonetic Permanent

Account Number (PPAN) is a concept which helps in allotment of a unique
PAN to each assessee. PPAN is essentially based on a phonetic/sound
algorithm which brings all similar sounding names under one code. It can,
thus, detect cases where the same assessee’s name is spelt slightly differently.
The name of an assessee, by itself, does not ensure uniqueness of the assessee,
since many persons may have the same or similar sounding names. PPAN
also uses other details about the assessee, like date of birth, status code,
father’s name and sex code. These details ensure uniqueness of assessees to a
very high degree.

3.2.3 Prior to allotting a PAN to an assessee, this module checks to ensure that the
same person has not been allotted a PAN earlier. If the PPAN generated for
the assessee does not exist in the database, then the assessee is allotted a PAN
and, if it does, the case is pointed out in a Duplicate PPAN report. In the latter
case, a genuine assessee can be allotted PAN after verification by the
Assessing Officer.

3.2.4 Limitations of the new structure of PAN: Although PPAN ensures sufficient
uniqueness for an assessee, there is still a remote possibility of generation of
duplicate PPANs for assessees, considering the total number of assessees in
India. In such a case, manual intervention – in the form of an Assessing
Officer’s discretion, is required to ensure that only one PAN is allotted to one
assessee. The system, however, cannot detect cases where a person applies for
a new PAN by giving false information about his name, father’s name, date of
birth or sex.

3.2.5 Integration with Assessee Information System (AIS): Initial Permanent

Account Number (IPAN) has been developed for one time allotment of PAN
to the existing assessees. AIS will provide a facility for uploading the IPAN
assessee data into its database structure AIS will share the Phonetic Permanent
Account Number (PPAN) and PAN Allotment Series table with IPAN to
ensure unique PAN allotment and to check for duplicate PPAN cases.

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3.2.6 Summary of data capture process: Form 49A received in the Office of
Assessing Officers are checked by the staff of the AOs and forwarded to the
respective Computer Centres. The forms are organized in batches of 50. The
data captured from the forms for allotment through IPAN is done in Computer
Centres. Each batch is assigned a unique number and each form in a batch is
serially numbered so that a combination of batch number and serial number
uniquely identifies a form. In case of outsourcing, the vendors capture data
from forms to flat files, in ASCII format as input in the IPAN System. IPAN
system validates this data while importing it.

3.2.7 Uploading scanned photograph and signature files: The photograph (only
for individuals) and signature available on Form 49A are scanned using a
scanner. The scanned photograph and signature files are uploaded on the
server at the time of uploading the corresponding assessee data. These are
then used to print the photograph and signature of the assessee on the PAN
card.

3.2.8 PAN preview and confirmation for PAN allotment: Before PAN is allotted,
the process of PAN preview is carried out. In this the assessees’ photograph,
signature and details to be printed on the PAN card (assessees’ name, father’s
name, date of birth/incorporations, etc.) are displayed on the screen. These are
verified from Form 49A. If the details are correct, the record can be
confirmed for allotment of PAN. The applications cleared at the RCC are
exported to NCC online where PANs are allotted by the system. The
allotment of new PANs is then exported back from NCC to concerned RCC
online for update of PANs in the respective databases.

3.2.9 Matching PPAN cases: If, at the time of allotment at NCC, a matching PPAN
(Phonetic PAN) is detected, then the details of the applicant as also of the
other allottees with matching PPANs are listed in a duplicate PPAN report. In
such cases, if the Assessing Officer is satisfied that the application relates to a
different case he can, after necessary verification, use ‘duplicate PPAN
override option’ and allot PAN.

3.2.10 Rectification/Updating of PAN data: Once the assessee data and the scanned
photograph and signature files are uploaded on the server, the assessee details
can be viewed on the screen. Any errors in the assessee data can be rectified.
The core fields, namely, assessees’ name, other name, father’s name, date of
birth, status and sex can be changed till PAN is allotted to the assessee. PAN
is allotted to an assessee only if there no error in the data. Any change in the
core fields after PAN is allotted can be done only by the AO.

3.2.11 Security and audit: IPAN system defines security at the menu option level.
Each option/screen is accessible by a role. Each user of the system is assigned
one or more roles. The users are able to use only their assigned roles. The
system automatically captures user-identification and time-stamp for
important updates made to the assessee information after allotment of PAN.
This includes update to name, father’s name, and date of birth/incorporations,
gender and status. IPAN system does not allow the user to update these fields
from the screen. AIS system, however, provides this feature.

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3.2.12 Outputs/Reports: Following outputs can be generated on IPAN:

i. PAN directory giving list of all allottees AO-wise, Name-wise;

ii. PAN cards containing the photograph, signature, name, father’s name,
date of birth etc., are laminated and sent to the allottees;
iii. Intimation letters intimating the PAN allotted to the applicant;
iv. Deficiency letters intimating the applicant the deficiencies in Form-49A;
v. Mailing labels for mailing various letters to the applicants.

Features of Assessee Information System (AIS): AIS is the hub system

around which all the Departmental application systems operate. AIS provides
the facility for uploading IPAN assessee data into its database structures. AIS
shares the PPAN and PAN Allotment Series table with IPAN to ensure unique
PAN allotment and to check for matching PPAN cases. Its main functions are:

i. Generate Phonetic Permanent Account Number (PPAN) and

allot Permanent Account Number (PAN) to each assessee;
ii. Support PAN Card preview on the screen and generate PAN card;
iii. Support transfer of jurisdiction of the assessee;
iv. Maintain assessee data and events;
v. Maintain jurisdiction hierarchy;
vi. Generate reports and support queries on assessee and jurisdiction data.

Allotment of PAN in AIS: AIS enables instant allotment of PAN by the AO

from Form-49A of the applicant from the PC connected to the network. The
AO can also print the intimation letter on successful allotment of PAN for his
PC. The Form-49A and photographs are then sent by the AO to the Computer
Centre where scanning of photographs and signatures, printing and lamination
of PAN cards are done. Details of the five core fields, the PAN-AO link and
PPAN for a PAN are also maintained at the NCC.

Updating of assessee database: Any change to core fields can be made only
by the AO and is audit trailed. Other fields can be changed by the authorised
staff of the AO. AIS records events about the assessee like death, liquidation,
dissolution, partition, merger, split, etc.

Hierarchies and roles in AIS jurisdiction hierarchy: The AIS system

maintains details about jurisdiction hierarchy viz., AOs (ITOs, ACITs, JCITs),
Joint/Additional CITs (Range), CITs, CCITs. These authorities are given a
code number which is unique in that Region. The existing statutory
jurisdiction hierarchy is reflected on the system by linking these post codes.
Each of these post codes has a defined ‘role’ in each of the different
application software. For unique codification, a logical group named ‘Area’
has been provided to link one or more related CCIT Regions where
JCIT/Additional CIT Range numbers are unique. Besides, a CTU to CIT link
is also maintained. These post codes are in turn linked to the Employee
Numbers of the officers currently posted against each of these posts. This
enables the system to regulate any unauthorised entry into the database,
maintain audit trail of changes made by the users in the database, and ensure
security.

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Transfer of jurisdiction: AIS maintains a link between the assessee and the
jurisdiction in terms of PAN – AO link. For this purpose the AOs are
codified. Once allotted, PAN of an assessee never changes in spite of change
in name, jurisdiction, address, etc. Therefore, on transfer of jurisdiction of an
assessee, PAN of that assessee requires to be linked to another AO. If the
transfer of jurisdiction is affected through the system AIS automatically
corrects the PAN – AO Link.

AIS has the functionality for effecting transfer of jurisdiction under Section
120 and 127 of the Act on the system. It allows the details of cases to be
transferred – identified by PAN, source AO and destination AO, to be entered
and maintained in the system. AIS provides standard texts of transfer orders
which can be adopted from the system and further customized. A draft
transfer order can be prepared in AIS by the ITO/ACIT (Headquarters) and
printed or viewed. This can be subsequently confirmed on the system by the
concerned CIT/CCIT or DGIT. Once the order is confirmed, intimation letters
and transfer memos can be printed. Optionally, in case of bulk transfers a
Summarized Transfer Memo can be printed. Once the transfer order is
confirmed on the system by an authority having the Role to transfer the case
the PAN – AO link of these cases automatically gets updated.

By specifying a selection criterion, it is possible to build ‘transfer movement

lists’ of affected assessees. For example, it is possible to prepare a list of
PANs in a Ward where returned income as of 1st April is more than 2 lakh.
These transfers are required to be done on the system to change PAN – AO
link. In such cases, ‘transfer orders’ can be prepared on the system and
confirmed by the authorised officer. Where movement is within the same
Range the Source AO can confirm the transfers. Where movement is from
one Range to another within the same Charge the JCIT can confirm the
transfers.

AIS also provides powerful queries to build sets of PANs qualifying for
transfer, the form of ‘transfer movement lists’. These can be modified
individually, by excluding or including PANs. The destination AO code can
be specified at list level or at individual PAN level. For example, jurisdiction
of an assessee may change on account of change of address; change of
profession or on the basis of returned/assessed income. Using the above
queries, ‘transfer movement lists’ of the affected assessees can be built on the
system. These lists can then be converted as draft transfer order to be
confirmed by the authorised officer. Mutual concurrence has to be taken by
the officers wherever required.

In case the source and destination AO’s locations are on different RCCs,
complete assessee profile comprising assessment, accounting details, etc., are
transmitted from the source AO to the destination AO over the network.

The system automatically captures user-identification and time-stamp for all

updates. If any of the key details of an assessee is changed, all previous
details along with earlier user-identification and time-stamp are captured as
part of the audit trail.

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Queries: AIS supports many queries such as query on the jurisdiction
hierarchy set-up, assessee details, assessee data audit log, events, transfer
orders and lists, and assessee jurisdiction history. An exhaustive query on the
assessee data (including member and branch data) is also provided. This
query also provides pattern and similar sounding match on name fields such as
assessee’s name, other name, father’s name, etc. The exhaustive query also
provides pattern and full address match on address fields such as residential
address, office address, and head office address, etc. Any number of valid
parameters can be specified in any combination. Queries are provided on data
related to AOs, Ranges, CITs, CCITs, assessee jurisdiction history, assessee
audit log, assessee details and events, transfer orders, etc. A comprehensive
query is available to inquire on assessee details. Special search features such
as pattern match, similar sounding names match and full address lines scan on
name and address fields are also provided. Queries to build default transfer
movements lists based on predefined selection criteria (such as to transfer all
eligible assessees from a ward to a circle) or a user defined criteria are also
provided.
Outputs from AIS: Following outputs can be generated through AIS—
Duplicate PPAN Report, Intimation letters, and PAN cards;
PAN directory;
‘Assessees on Record’, a part of the Quarterly Progress Report (QPR);
Draft/confirmed transfer order, Transfer Memo;
Summarized Transfer Memo, etc.
Manpower Management System (MMS)
The main objective of this software is to identify each employee of the
Department by a uniquely generated Employee Number. This is a six digit
number allotted centrally from NCC, Delhi for all Groups of employees of the
Department. The Number does not change irrespective of promotion, transfer,
deputation and retirement.
The following information is required to allot Employee Number—
Name of the employee;
Date of birth;
Date of joining service in Income Tax Department;
Group and cadre in which the employee joined the service;
Experience in the Department.
MMS allows entry of bio-data details for Group ‘A’ officers from any office
in the country where a terminal is on the network and MMS is installed on the
RCC. Bio-data of Group-A officers is stored centrally, i.e., at the NCC in
Delhi. This allows query on bio-data of these officers from any terminal
connected through the network. Since Group ‘B’, ‘C’ and ‘D’ officials are not
transferred outside the Region, their bio-data are stored at the respective RCC.
MMS allows entry and query on bio-data of Group B, C and D officials from
any terminal connected to the RCC. MMS allows subsequent changes to be
made to the bio-data subject to certain safeguards.

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Transfers of employees: MMS has the feature of generation of transfer orders
by CBDT, CCIT, CIT and ACIT/ITO (Admn.) from the system. The text of
the order can be adopted from a set of standard transfer order texts and
customized. The employees to be transferred can be identified by their
Employee Numbers, and source/destination location can be entered in the
system and printed.

Transfers across RCCs: In cases of transfer from outside the jurisdiction of

the RCC, the bio-data of the employee needs to be transferred from the old
RCC to the new RCC. In such cases the employee Number of the transferred
employee can be ’transferred out’ by the concerned DDO if he is on the
network at the respective RCC. The ‘transferring out’ DDO after logging in
with his user-id and password has to choose the relevant menu sub-item and
enter the employee number, date of relieving and certain other data of the
transferred employee. Once the concerned employee joins at the new station
under a new RCC, the ‘transferring-in’ DDO after following the same
procedure can query the details of employees waiting to be ‘transferred in’.
He can then ‘claim’ the new employee by entering his Employee Number,
date of joining, and certain other details. Proper transfer-in and transfer-out of
employees is an essential security requirement.

Roles, privileges and security: An officer or his staff is allowed to work only
on cases in the Assessing Officer’s jurisdiction. The superiors of the officer
can only query the data related to the cases in officer’s jurisdiction but are not
allowed making any modifications. Functions like data entry from
acknowledgement sheets, entry in the RRR, etc., can be done by the AO’s
staff. The final approval required to mark the proceeding as complete, leading
to initiation of printing outputs and posting of entries in IRLA, can only be
given by the AO. Similarly, in the office of CIT maintenance of the Revision
register, penalty proceedings, and penalty waivers, etc., on the system can be
done by the CIT (Appeals) or his staff. The same applies to generation of
notices, preparation of Reports, maintenance of registers of audit objections,
prosecutions, etc.

Judicial Reference System (Taexpert): This provides an off-line reference

system on Judgements, Rulings Case Laws on different issues relating to
various Direct Taxes/Rules as pronounced by various High Courts, Supreme
Court, as also Direct Taxes Acts/Rules and Circulars/Instructions/Notifications
issued by the CBDT.

Integrated nature of the application software: Since all the nine application
software is interconnected, the data entered in one software is used for
updating information wherever required in the other software.

SECTION – 4

ORGANISATION OF WORK AT RANGE/AO LEVEL

4.1 Jurisdiction: Restructuring proposal envisages Range-wise jurisdiction,

where all Assessing Officers in a Range including Addl. CIT, JCIT, DCIT,

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ACIT and ITO should have concurrent jurisdiction over all the cases of the
Range. The jurisdiction of Ranges themselves should be territorial except in
respect of Salary, Company, Trust and TDS cases. This pattern should be
generally adhered to except where minor deviations become necessary, e.g., in
respect of Assessing Officers of a Range located at different stations. This
may also become necessary for equitable distribution of work and flexibility in
the context of the requirement of limited scrutiny.

4.2 Distribution of work at Range level: After restructuring of the Department

the main assessment and collection functions have to be organised with the
Range as the main functional division, and the Range JCIT acting as its centre
piece. Each Range has one DCIT/ACIT and 5 Income Tax Officers. One ITO
has to work as TRO, while remaining five officers will function as Assessing
Officers (1 + 4) in each Range. In functional respect, each Range will have
three sub-units:

Record Keeping Unit (under the JCIT headed by an Administrative

Officer/Office Superintendent)
Assessment Units (under individual Assessing Officers with adequate clerical
support)
Collection Unit (under the TRO with an Administrative Officer/Office
Superintendent as Office in-charge)

The basic concept is that the workload of the Range should be distributed
evenly among the officers and the disposal should be centrally monitored by
the Range JCIT. With computerisation, it is possible to centrally maintain and
monitor the statistics about workload and disposal in respect of main items of
work, while optimising the use of manpower.

4.3 Functions of the Record Keeping Unit (RKU)

4.3.1 The Record Keeping Unit, headed by an Administrative Officer/Office

Superintendent, shall be responsible for centralised receipt of returns and all
other documents, centralised despatch, as also the maintenance of Common
Record Room for the entire Range. It will also perform certain other
centralised functions and will be the front office of the Range providing single
window system for the taxpayers, public as well as for the outside agencies.
Normally RKU will function under the direct control and supervision of the
Range JCIT, except where some AOs of the Range are located in different
buildings or cities, in which case the senior-most AO of the Range located in
such buildings or cities will supervise the RKU. In cases of Ranges having
very large jurisdiction, e.g., Salary Ranges in metro cities, more than one
Administrative Officer with the corresponding staff can be posted to look after
the RKU.

4.3.2 All incoming dak should be received centrally by the RKU and entered in the
Inward Receipt Register on the System. The Range JCIT shall distribute the
work to different AOs for disposal depending upon their workload. RKU will
keep a record about the AOs to whom such matters are marked. Their
disposal will be reported to RKU and will be centrally monitored by the Range

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JCIT. Since all despatch will also be centralised through the RKU it will be
possible to link receipts with assignments of work, and their disposal and
despatch.

4.3.3 Managing common receipt counters

4.3.3.1 All returns of income should be received centrally at common receipt

counter(s) of the Range. All general dak other than the returns of income
including rectification applications, appellate orders, grievance petitions, stay
petitions, tax evasion petitions, CIB information, etc., will also be centrally
received by RKU and entered in the Inward Receipt Register on the System.

4.3.3.2 Receipt of returns: All returns of income will be received centrally at

common Receipt counter(s) functioning under the RKU. During rush period
Range JCIT may direct opening of multiple Receipt counters by temporarily
re-deploying staff from Assessment units. Acknowledgement Numbers for
returns should have ten digits – the first two digits representing the Range
number, the next two digits representing the Counter number, and last six
digits being the running serial number of returns received at that counter
during a particular financial year. In Ranges where the jurisdiction is
concurrent for the entire Range returns can be received at any of the multiple
Receipt counters. In Ranges where jurisdiction is specific up to the AO, either
statutorily or through administrative orders, returns for each AO should be
received against separate set of Acknowledgement Numbers for each AO. In
such cases, out of the two digits meant for the counter number, first digit
should identify the AO and the second digit the counter number. At the time
of receipt it should be checked whether the return is properly filled and PAN is
mentioned, otherwise a copy of PAN application in Form-49A should be
insisted upon.

4.3.3.3 Computerised Return Receipt Register: AST software provides the

functionality of generating the Return Receipt Register (RRR). As soon after
the receipt of the returns as possible, entry should be made directly in the RRR
using on-line terminals. At stations not yet on the network RRR should be
prepared using the stand alone RRR software separately provided by the
Directorate of Income Tax (Systems). The format of the RRR is available in
both the AST and RRR software.

In either case the Range JCIT must ensure that monthly RRR for the entire
Range is made available to the CIT (CIB) by the end of the month following
the month, in which returns have been received, for data matching using CIB
software to identify stoop-filers and non-filers.

4.3.4 Making bundles of returns, and storing/locating them:

4.3.4.1 After the entry in the RRR, returns should be tied into standard bundles of
25-50 returns each. These bundles should be made in such a manner that the
returns can be easily taken out and put back as and when needed. In Ranges
where the jurisdiction is concurrent for the entire Range bundle of returns
should be made in the sequence in which they have been received. In Ranges

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where jurisdiction is specific up to the AO, either statutorily or through
administrative orders bundles of returns should be made separately for each
AO in the sequence in which they have been received for each AO. Each
bundle should have a Bundle Identification Number (BIN) comprising a
running serial number of the Range/AO, the financial year in which it has been
received, and the starting/ending acknowledgement number of returns
included in it. These identification particulars should be entered on a
bundle-slip tied with the bundle.

4.3.4.2 Movement Control Register (MCR): The particulars of the bundles should
be entered in the Movement Control Register of the RKU to be maintained on
computer. In Ranges where the jurisdiction is concurrent for the entire Range,
running entries regarding the bundle of returns should be made in the
Movement Control Register in the sequence in which they have been received.
In Ranges where jurisdiction is specific up to the AO, either statutorily or
through administrative orders, bundles of returns should be made separately
for each AO and should be entered in different Sections of the Movement
Control Register pertaining to each AO but in the same sequence in which
these have been received for the respective AOs.
Note: Where an individual return is withdrawn from a bundle and issued to an
AO for a specific action, e.g., for rectification or for making a case file for
scrutiny etc., the Bundle Identification Number as also the acknowledgement
number of the return should be mentioned in Column 2 of the Movement
Control Register of RKU.

4.3.5 Distribution of returns to AOs for processing: At the beginning of each

month the RKU will distribute bundle of returns to AOs as per the directions
of the Range JCIT after making necessary entries in the Movement Control
Register. The AO will process the returns u/s 143(1). In cases where a return
is found to be defective u/s 139(9) the A.O. will take necessary follow up
action to have the defect removed failing which the return would be declared
non est. After processing and necessary follow up action, the bundles of
returns will be returned back by the AOs to the RKU, every month in monthly
batches in the same sequence in which they were issued. These will be
entered in the Movement Control Register by the RKU and monitored by the
Range JCIT through the RKU. The bundles of processed returns will be
stored in the Common Record Room in a serial order. In Ranges where
jurisdiction is specific up to the AO, either statutorily or through
administrative orders, separate areas may be earmarked for storing the bundles
of returns of each AO separately. The particulars of location of the bundles
i.e., the Rack Number and Shelf Number will be indicated in the Movement
Control Register. In addition each AO may also maintain separate movement
Control Registers for his ward/circle in the above format with necessary
modifications.

4.3.6 Receipt and distribution of other papers received in dak: All other dak will
be received centrally and distributed to different officers for disposal as per the
directions of the Range JCIT after making necessary entries in the
computerised Inwards Register. The disposal of these papers will be
monitored by the Range JCIT periodically through the RKU.

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4.3.7 Despatch through common despatch counter: A central despatch counter
will be run for dispatch of all papers including refunds, intimations, notices,
etc. being sent out of the Range. The Central Despatch Register should also
be linked to the Inward register to monitor the disposal of the dak papers
marked to different AOs.

4.3.8 Common Record Room (CRR)

4.3.8.1 All Ranges will have a Common Record Room (CRR) for centralised
maintenance of all records by the RKU. Records will be maintained for the
entire Range. No separate records will be maintained for individual AOs.
Even where the AOs in a Range have individual jurisdiction the record should
be maintained centrally in the CRR, though separate spaces can be earmarked
in the record room, for such AOs. In cases where some AOs of the Range are
located in different buildings or cities, the senior-most AO of the Range
located in such buildings or cities will supervise the RKU in that building/city.

4.3.8.2 Return-wise record keeping: Since very few returns will be taken up for
scrutiny there is no particular advantage in merging all returns of an assessee
to create assessee-wise case-files of all assessees. Further, with the
computerised processing of returns, basic data of all assessees relating to past
years will become available on system. Therefore, records should be
maintained return-wise and not assessee-wise, i.e., returns of all assessees
received in a particular year should be formed in bundles at the receipt stage,
processed bundle-wise and stored centrally at one place in the RKU after
processing. The bundles created at the time of receipt should be kept intact
and not broken to create assessee-wise case files. Whenever a case is selected
for scrutiny and return is required by an AO for scrutiny, a separate case-file
of such assessee should be prepared by the RKU by putting together the
available returns of various years in a single file. The RKU will send the case-
file to the concerned AO after making necessary entries in the Bundle-slip and
the Movement Control Register and issue the same to the AO. The AO will
return the same to the RKU after completion of the necessary action.

4.3.8.3 Past records: All past records of the assessees where processing was done
manually should be stored in a separate section of CRR assessee-wise and in
alphabetical order. This storing of historical records will continue for some
years during the transitional period and will eventually become redundant.
Such records will have to be maintained till all pending proceedings including
recovery are completed or till these become due for weeding whichever is
later.

4.3.8.4 Returns processed on computers: Bundles of returns received after

processing on computers during a year should be restored in accordance with
the unique Bundle Identification Number of the Range assigned at the time of
receipt.

4.3.8.5 Cases selected for scrutiny: When cases are selected for scrutiny a separate
case file of each of such assessee should be prepared by the RKU by putting
together the available returns of various years in a single file and sending it to

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the concerned AO who will keep the case file in his custody. The fact of
withdrawing a return from a bundle should be noted on the Bundle slip and
MCR. Necessary record of movement of these case files should be maintained
by the RKU. The AO will deal with such cases, place all papers/documents on
the case file, and maintain a proper order sheet recording the proceedings,
complete the scrutiny assessment or other proceedings, and return the case file
to the RKU. These case files shall be maintained as such in the RKU till the
proceedings in respect of that assessment year, including penalty and recovery,
etc., are certified as completed. Confidential record should be kept in custody
of the AO and an indication to that effect should be made in the Order sheet of
the case file.

4.3.8.6 Inspection of documents: Often assessees require inspection of records. The

inspection should be given by the RKU after obtaining permission of the JCIT
and deposit of the prescribed fees.

4.3.8.7 Transfer of records out of Range: The transferor AO will transfer the PAN
on the system in AIS. He will then requisition the pending returns, the returns
where processing has been done on computer, and the historical records and
send these to the transferee AO indicating in the transfer memo the particulars
of returns processed on computer. The transferee AO will segregate the
historical records and processed returns, and send these to the RKU for
storage. The returns pending processing if already entered on AST will be put
in special bundles bearing the same numbers as of the transferor AO. This is
because the bundle number for a return remains unchanged in the system. It
will retain the AO code of the AO who entered the return. Whenever the new
AO enters the PAN, the return will be retrieved and the transferee AO will be
able to process it, if the PAN has been properly transferred to him.

4.4 Managing front office and facilitation counters: Each Range will have a
front office where Reception-cum-facilitation counter should function. This
will provide help-desk facilities for taxpayers; look after the work of
dispensing basic information and supply of forms. The front office should be
provided with online computer terminal and intercom connections with all the
officers of the Range. Entry inside the Range office should be controlled
through passes issued by Range JCIT. Permanent passes may be issued to
regular counsels. Assessees desirous of meeting an officer should approach
the Front office which will confirm the appointment from the officer over
intercom and issue the pass. Assessees and visitors may wait in a waiting
room near the reception.

4.5 Distribution of work amongst AOs

4.5.1 Assessment units: Each Range is supposed to have 35,000 to 50,000 files. In
Ranges where the jurisdiction is concurrent for the entire Range, the Range
JCIT will allocate the bundles of returns among AOs on monthly basis for
processing u/s 143(1). In Ranges where jurisdiction is specific up to the AO,
either statutorily or through administrative orders, Bundles of returns
pertaining to the AO will be issued by the RKU on monthly basis for
processing.

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4.5.2 Processing of returns: Data entry for processing of returns should be done by
the staff of the individual AOs from the acknowledgement sheets of the
returns. In cases where any return does not carry PAN or PAN has not been
allotted, the AO should first allot PAN. In case any return cannot be
processed for any other reason such as lack of jurisdiction, this should be
indicated on the Bundle-slip while returning the Bundle to the RKU. After
completing the data entry in respect of a return, the official concerned should
note the bundle number on the return and indicate by putting a rubber stamp
on the return that data entry is complete. The AO will check the correctness of
data entry, in particular of the prepaid taxes, and will give the final command
for processing. Intimations, refunds/advice-notes and Challans will be
generated and signed by the respective AOs. Refunds/Advice-notes and
Office copies of the intimations will be placed along with the returns and the
bundles of processed returns will be returned to RKU for dispatch of
intimations and refunds/advices.

4.5.3 Returns requiring limited scrutiny: At the stage of processing, the AO will
also identify and bookmark the return requiring limited scrutiny u/s 143(2)(i).
In such cases, he will prepare a standard notice for the concerned taxpayer
mentioning the item requiring limited scrutiny, and keep both the copies of the
notice with the return in the relevant bundle of processed returns being
returned to the RKU. The RKU will dispatch the notice and put up the return
in ‘case file’ before the concerned AO on or before the date of hearing after
making necessary entries in Bundle slip and MCR. The case file will remain
with the AO till the assessment order is passed. The AO will maintain an
order sheet, conducting hearing, and finalise the proceeding by a speaking
order. He will also make necessary entries on the system and generate
assessment order, demand notice, and Challans, etc. On completion of the
assessment proceedings the case records will be forwarded to the RKU for
dispatch of assessment documents and storage of records. The RKU will also
make necessary entries in the Movement Control Register.

4.5.4 Scrutiny of cases: Cases should be selected for scrutiny by the Range JCIT as
per the criteria laid down by the Board in a given year, the information
available with the Department and scrutinize potential of the cases. For this
the JCIT and AOs should use the information available in the returns, the AST
and CIB central database, and other information available in the Range. The
proposal for selection along with minutes should be submitted to the
Commissioner who will discuss it with the Range JCIT. After a discussion of
the potential cases the Commissioner will approve the selection out of the
cases short-listed for scrutiny. Officers will be fully accountable for cases
selected for scrutiny. The total number of cases selected for scrutiny in each
Range should be as per the norms prescribed by the Board from time to time.
The cases will be assigned by the JCIT to the AOs for scrutiny, on the basis of
returned income and the importance of the issues involved. In Delhi, Mumbai,
Calcutta, Chennai, Bangalore, Pune and Ahmedabad, files having latest
returned income of Rs.10 lakh and above should be assigned to DCIT/ACIT
and rest of the files below this income should be allocated among the Income
Tax Officers. In other cities except above, files having latest returned income
of Rs.5 lakh and above should be allocated among the DCIT/ACIT and those

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below Rs.5 lakh should be allocated among Income Tax Officers. Once a case
is selected for scrutiny the RKU will prepare a case file of that assessee, and
hand it over to the concerned AO after making necessary entries in the
Movement Control Register and in the Bundle slips from where the returns are
withdrawn for making a case file. The AO should prepare an order sheet, and
conduct hearings in the normal course. The first questionnaire should be
issued after the approval of the Range JCIT. The AOs and the Range JCIT
should discuss these cases under scrutiny from time to time. The gist of the
discussion should be recorded by the AO in the office note, and initialled by
the Range JCIT. The information available with CIB and outside agencies
like Company Affairs, Directorate of Enforcement, etc., should be taken into
account while completing the assessment. The AO should complete the
proceedings by a speaking order. He should also make necessary entries on
the system and generate assessment order, demand notice, and Challans, etc.
These documents will be forwarded to the RKU for despatch. On completion
of the proceedings the case-file will be returned to the RKU which will make
necessary entries in the Movement Control Register.

4.5.5 Rectification applications: Rectification applications will be centrally

received and entered in the Inward Receipt Register on the system by the
Record Keeping Unit. These will be distributed among the respective AOs as
per the jurisdiction order or the directions of the Range JCIT. The AO should
requisition the return/file from the CRR, deal with the application and
complete the proceeding by passing a speaking order and making necessary
entries on the system. He should also generate refund/demand-notice and
Challans, etc. A copy of the order should be kept in the case-file. The case-
files together with the order, refund/demand-notice and Challans, etc., should
be sent to RKU for despatch of the order and storage of the case-file.

4.5.6 Appellate orders: Appellate orders will be centrally received and entered in
the Inward Receipt Register on the system by the RKU. These will be
distributed among the respective AOs as per the jurisdiction order or the
directions of the Range JCIT depending upon their respective workloads. The
AO will requisition the file from the RKU, deal with it and return the file to
the RKU. The refund, if due, will be prepared by the AO and sent to the RKU
for despatch along with the case file. The disposal of orders giving appeal
effects, scrutiny reports and filing of second appeals will be centrally
monitored by the Range JCIT.

4.5.7 Reopening and revision: Matters relating to re-opening of assessments and

revisions u/s 263 and 264 will also be centrally received by RKU and entered
in the Inward Receipt Register on the System and similarly distributed to the
AOs who will deal with these by requisitioning and returning the return/file to
the record room. These will be centrally monitored.
4.5.8 Grievance petitions: Grievance petitions will be centrally received by RKU
and entered in the Inward Receipt Register on the System. These will be
distributed among the respective AOs as per the jurisdiction order or the
directions of the Range JCIT depending upon their respective workloads. The
AO will requisition the file from the RKU, deal with it and return the file to

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the RKU. The refund, if due, will be prepared by the AO and sent to the RKU
for despatch along with the case file. Grievance petitions will be centrally
received by the Range JCIT.
4.5.9 Widening of tax base: This work should be given to one Assessing Officer of
the Range by the JCIT. He should be accountable for identifying
stop-filers/non-filers and detection of new assessees in the territorial
jurisdiction of the Range.
4.6 Functions of collection unit: This unit under the TRO will deal with all
matters relating to collection of demands of the Range and grant of
stay/instalments. The TRO will be responsible for following up monitoring of
collections from TDS and advance tax, follow up of arrear demands, and
action for recovery from arrears.

SECTION – 5
RECORD MANAGEMENT

5.1 In the Ranges, records shall be maintained by Record Keeping Unit (RKU)
attached to each Range. Normally, the RKU will be headed by an
Administrative Officer/Office Superintendent and will function under the
direct control and supervision of the Range JCIT, except where some AOs of
the Range are located in different buildings or cities, in which case the
senior-most AO of the Range located in such buildings or the city will
supervise the RKU.
5.2 The basic features of the new records management are as under:
5.2.1 Common Record Room (CRR): All Ranges will have centralised
maintenance of all records by the RKU in a Common Record Room (CRR) for
the entire Range. No separate records will be maintained for individual AOs
even in Ranges where jurisdiction is specific up to the AOs. In cases where
some AOs of the Range located in such buildings or cities will supervise the
RKU in that building/city. In Ranges where the jurisdiction is concurrent for
the entire records of the Range will be maintained in the RKU as common
records. In Ranges where the AOs have individual/specific jurisdiction either
statutorily or through administrative orders, the records should be maintained
centrally in the CRR, though separate space/Racks can be earmarked in the
CRR for each such AO.

5.2.2 Return-wise record keeping: The records should be maintained return-wise

and not assessee-wise, i.e., returns of all assessees received in a particular year
should be formed in bundles of 25/50 at the receipt stage, issued to AOs
bundle-wise for processing and stored centrally at one place in the RKU after
processing. Assessee-wise case files will be created by the RKU in special
circumstances, e.g., when the case is selected for scrutiny, or is required for
appeal effect, penalty or such other proceedings by putting together the
available returns of an assessee of various years in a single file. The RKU will
send the case file to the concerned AO after making necessary entries in the
MCR. Similarly, when a return is required by an AO for some other action,
verification, or other proceedings, he will requisition the same from the RKU.

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The RKU will withdraw the return from the Bundle, make necessary entries in
the Bundle-slip and the Movement Control Register and issue the same to the
AO. The AO will return the same to the RKU after completion of the
necessary action. Except in above situations the bundles of returns created at
the time of receipt should be kept intact and not broken.

5.2.3 Proper planning for shortage of returns: Proper and sufficient storage space
should be earmarked in the CRR for storing historical records, the current
returns, the processed returns awaiting selection for scrutiny, the case-files
created for scrutiny, etc., received back from the AOs where
appeal/penalty/recovery or other proceeding are pending, and other records.
On a rough estimate 36 bundles of twenty-five returns each, i.e., 9000 returns
can be stored in one rack. The Range JCIT should work out the requirement
for his Range on this basis.

5.2.4 The records in the CRR will be organised in following Sections:

5.2.4.1 Past or historical records: The assessee-wise records created prior to the
coming in force of the new record management System, i.e., for A.Y. 2002-03
and earlier years, will be kept in this Section in an alphabetic order till these
become due for weeding. The case files where any proceeding for A.Y.
2002-03 or earlier years, including appeals, penalty, and recovery, etc., are
pending will be kept according to the procedure described in para 5.2.4.4
below. The processed returns of earlier years, i.e., prior to A.Y. 2002-03
which have not been made into assessee-wise case-files, but for which
selection for scrutiny has been completed, will also be stored here till these are
shifted to off-site storage as described in para 5.3 below.

5.2.4.2 Current returns awaiting processing: All returns of income will be centrally
received at Common Receipt Counters. The Receipt Clerk will affix the
relevant receipt-stamp of the Range/AO with the acknowledgement number
and the date of receipt on the return. During rush period Range JCIT may
direct opening of multiple Receipt counters. Returns received will be given
ten-digit Acknowledgement Numbers at the Receipt Counters – the first two
digits representing the Range number, the next two digits representing the
Counter number, and last six digits being the running serial number of returns
received at that counter during a particular financial year. In Ranges where
the jurisdiction is concurrent for the entire Range, returns can be received at
any of the multiple Receipt counters. In Ranges where jurisdiction is specific
up to the AO, either statutorily or through administrative orders, returns for
each AO should be received against separate set of Acknowledgement
Numbers for each AO. In such cases out of the two digits meant for the
counter number, first digit should identify the AO and the second digit the
counter. Returns so received will be handed over by the Receipt Clerk(s) to
the Record Keeping Unit where these will be made into bundles of 25/50
returns each and temporarily stored in this Section till these are entered in the
RRR and the bundles are issued to AOs for processing. The RRR will be
maintained on AST software for stations on the network and on Standalone
RRR software for the AOs at stations yet to be brought on the network. All
returns for A.Y. 2002-03 and earlier years awaiting processing will be stored
in bundles temporarily in this Section, till these are issued to the AOs for

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processing after necessary entries in the MCR. Once the Bundles of returns
are received back from the AOs after processing these will be entered in MCR
and stored as per procedure in para 5.2.4.3 below.

5.2.4.3 Processed returns awaiting selection for scrutiny: The Bundles of

processed returns received back from AOs after processing, where Selection
for scrutiny is still to be carried out; will be kept in this Section in the serial
order of Bundle Identification Numbers (BIN). Each Bundle of return will
have a particular BIN appearing on the Bundle slip and the MCR. The same
BIN will be indicated on the rack where the Bundle is kept. The Rack number
and Shelf Number will in turn be noted in column 7 of the MCR.

5.2.4.4 Case files of scrutiny cases and other special cases: As mentioned earlier
case-files will be created by RKU only in respect of cases selected for
scrutiny, by withdrawing all available returns of the assessees from the
respective bundles. For this the RKU will make entries in the respective
Bundle-slips and the MCR. These case-files will be sent to the respective AOs
for completion of the scrutiny assessments and other relevant proceedings.
The case-files will remain in the custody of the concerned AOs till the
completion of the relevant proceedings. On completion of the proceedings
before the AO the case-file will be returned by him to the RKU for storage.
These will be retained in this Section by the RKU till such time as all other
proceeding in respect of such cases, i.e., appeals, penalty, recovery, etc., are
complete. These should be stored in the CRR in alphabetical order and will be
issued to the different authorities, e.g. CIT (Appeals), TRO, JCIT, Audit, etc.,
as and when requisitioned by them. For this the RKU will maintain necessary
movement register of case-files. The records in respect of old cases, i.e., cases
for A.Y. 2002-03 and earlier years where action relating to penalties, revision
petitions, appeals, recovery, etc., is pending, shall also be kept in this Section
and in the same manner as indicated above.

5.3 Off-site storage: Processed returns, in respect of which selection for scrutiny
is complete, will be shifted to off-site storage facility three years after the
Assessment Year to which these pertain. These will be retained there till
6 years after the relevant Assessment Year. Thereafter, these will be weeded
out after verifying that these are not required for proceedings of any other year
or any other assessee. In offices where shortage of space is not a problem,
such old records could be kept in a separate room, Range/AO-wise.

5.4 Shifting and weeding of records: The exercise for shifting of records from
one Section of CRR to another, and weeding out, etc., shall be undertaken in
the first quarter of each financial year by the RKU as an integral part of annual
house-keeping.
1. Functionalities of Pay-roll Accounting System (PAS)
i. Preparation of group-wise pay-roll of all employees working under a DDO.
ii. Preparation of all Schedules & Statements for recovery of loans and
advances.
iii. Preparation of monthly Pay-slip for each employee.
iv. Calculation & Deduction of Income-tax.

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v. Calculation of interest of GPF at the end of the financial year.
vi. Prepares Form-16A
vii. Form-24 at the end of financial year.
viii. Automatic transfer of pay-roll data from one DDO to another DDO in the
event of transfer of an employee.
2. Functionalities of Financial Resources System (FRS)
I. Maintenance of sanctioned grant, its allocation and surrender.
II. Maintenance of expenditure as incurred and outstanding.
III. Maintenance of commitments at DDO level.
IV. Provide following reports & queries:
 Monthly Expenditure Statement
 Five-Monthly Budget Statements
 Ten-Monthly Budget Statements
 Certificate of Expenditure
 Appropriation Register
 List of Bills
 Query on sub-head-wise expenditure
 Query for party-wise expenditure

3. Functionalities of Physical Resource System (PRS)

i. Maintain list of residential accommodation available with the Department
and assist in allocation of flats.
ii. Maintain list of telephones and monitor their allocation.
iii. Maintain list of vehicles and monitor their allocation.
iv. Maintain receipt, issue and balance stock of all Forms with the Forms
Stores.
v. Maintain receipt, issue and balance stock of office equipment under the
charge of a DDO.
vi. Maintain receipt, issue and balance stock of stationery item purchased and
issued by a DDO.
4. Functionalities of Tax Deduction at Source System (TDS)
i. On-line allotment of TAN.
ii. One time formatting of TAN data for old deductors on register.
iii. Receipt of Annual Returns on the System.
iv. Data entry of Annual returns and application of on-line validations for
ensuring high degree of data accuracy.
v. Support for magnetic media based annual returns.
vi. Detection of late and non-filers and issue of show cause notices.
vii. Verification of TDS returns, detection of missing information
computational error, TDS payment mismatch with IRLA payments.
viii. Detection of default & generation of notices along with justification:
 u/s 272A (2)(c) for late filing of return
 u/s 201(1) for short deduction
 u/s 201(1) for short/non-payment of tax
 u/s 201(1A) for late payment of tax
 u/s 192(1) for averaging
 u/s 272A (2)(f) for late furnishing of TDS certificates

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 u/s 272A (2)(g) for late furnishing of declaration u/s 197A.
ix. Maintain manually detected defaults & issue of show cause notices:
 Short-deduction u/s 201(1)
 Late furnishing of TDS certificate u/s 272A (2)(f)
 Late furnishing of declaration u/s 197A
 Penalty u/s 221(1) and u/s 271C
 Non quoting of TAN on documents u/s 272 BB
 Non filers of TDS and TCS returns
x. Maintain demand and penalty and as a result of subsequent proceedings,
viz., rectification, revision, appeals, etc.
xi. Maintain demands finalized during show cause hearings and posting to
IRLA. Store the information related to demand and penalty orders and
generates outputs like show cause notices, challans and demand notices.
xii. Queries
 Penalty proceedings
 AO-wise list of returns
 List of orders passed, defaults detected
 List of show-cause notices for which order has not been passed, etc.
xiii. Reports
 TAN Intimation Letters
 AO-wise TAN Directory
 Return Receipt Register and TDS Control Register
 List of Late-filers and Non-filers
 Report for Short-deduction, Short/Non-payment of tax and Late-
payment of tax
 Report on late furnishing of TDS Certificates and declarations
 Notice u/s 272BB/274, 272A(2)(c)/274, 272A(2)(f)/274, 272A(2)(g)/
274, 201(1), 192(1), 271C/274, 221(1) and156.
 Challans for demands raised
 Register of Penalties under section 271C, 272A and 272 BB
 Quarterly progress report
 Refund voucher
 Register
5. Functionalities of Management Information System (MIS)

i. Quarterly Progress Report (QPR)

ii. CAP – II
iii. Status-wise number of returns, Gross income, Gross tax by source
iv. Deductions, Rebate and Relief by nature of Deductions/Rebates
v. Number of Returns, Gross Income, Deductions, Income returned, B/F Loss,
etc. Set off and Tax payable – by status and Range of Income

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SECURITY POLICY FOR
ACCESS TO THE INFORMATION TECHNOLOGY SYSTEMS AND
DEPARTMENTAL (ITD) APPLICATIONS OF
INCOME-TAX DEPARTMENT

1. Background

1.1 For issuing access privileges to Information Technology (IT) Systems or

Income Tax Department (ITD) Applications and for withdrawing them (when
employees conclude their employment or when their duties no longer require
them to have access) certain policies and procedures are required to be
developed and implemented for ensuring observance of strict discipline and
secrecy to maintain integrity of the database and the systems.

2. Definitions

(i) Systems Administrator is an EDP officer who has been entrusted

with the overall responsibility for carrying out the functions such as
system start-up or shutdown, managing users (including adding new
users and new groups when required, deleting or invalidating users and
managing user security), tuning of parameters of the operating system,
at present AIX, Novell Netware and Windows NT, for optimum
performance, assigning job priorities and scheduling, applying
upgrades and maintenance of logs of upgrades, disk management and
co-ordinating with the Data Base Administrator for optimal storage
and other data base or application needs, systems maintenance which
includes system backup & recovery, maintenance of the file systems &
logical volumes and maintenance of system hardware, monitoring of
system accounting and system security, etc.

(ii) Data Base Administrator is an EDP officer who has been entrusted
with the overall responsibility for carrying out the functions such as
start-up or shutdown of Oracle instance and database, installation and
upgrade of Oracle server and application tools, allocation of system
storage and planning future storage requirements for the database(s),
creation and modification of primary database structures (table spaces)
and primary objects (tables, views, indexes etc.), enrolment of users,
control and monitoring of user access to database, maintenance of
database and system security, planning and scheduling the database
backup, restore and recovery, monitoring of archive logs and
maintenance of archived data on tape, monitoring and tuning the
database parameters for optimising the database performance, co-
ordination with Systems Administrator and Network Administrator to
ensure smooth functioning of the centre and liaison with RDBMS
software suppliers, at present M/s Oracle Corporation, for technical
support, etc.

(iii) Application Administrator is an officer who has been entrusted with

the overall responsibility in respect of application software for carrying
out the functions such as providing technical support to users, training

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of users, co-ordination with application software in charge at NCC
(National Computer Centre) for NCC level functions, co-ordination
with the Data Base Administrators, Systems Administrators and
Network Administrators, local as well as NCC, and first point contact
for enhancement and modification through change management, etc.

(iv) Network Administrator is an officer who has been entrusted with the
overall responsibility for carrying out the functions such as managing
the LAN (Local Area Network) and WAN (Wide Area Network),
monitoring and tuning the network, providing support to users using
the Network, applying upgrades and maintaining log of upgrades, etc.

(v) Security Administrator is an officer, not below the rank of Joint

Commissioner of Income-Tax, who is responsible for ensuring
compliance of Security Policy in respect of the Income-Tax Offices
covered by the RCC (Regional Computer Centre)/CC (Computer
Centre).

(vi) Supervisory Officer in the case of Group ‘C’ staff would be the
concerned ITO/ACIT/DCIT/DDIT; in the case of ITO/ACIT/ADIT/
DCIT/DDIT would be the concerned JCIT/JDIT/Additional CIT/
Additional DIT; and in the case of JCIT/JDIT/Additional CIT/
Additional DIT would be the concerned CIT/DIT/CCIT/DGIT. CIT,
DIT, CCIT, DGIT, Member, CBDT & Chairman, CBDT will be self-
supervisory authority in respect of his or her charge or region or area
of work.

(vii) Nodal Officer is an officer who has been entrusted with the overall
responsibility for carrying out the functions such as receipt and
distribution of all software and hardware pertaining to officers in the
respective town or city or building, maintenance of stock register,
co-ordinating shifting of PCs, keeping track of handing or taking over
of PCs etc., co-ordinating point in the town or city or building for all
maintenance problems of PCs, Printers and CVTs, etc.

(viii) Co-ordinating Officer is an officer of the rank of Additional

Commissioner of Income-tax or Joint Commissioner of Income-tax
who is overall incharge for the Regional Computer Centre or Computer
Centre and all PCs etc., installed within the territorial jurisdiction of
the respective Regional Computer Centre or Computer Centre. He or
she is the co-ordinator level officer between the Directorate of Income-
Tax (Systems) and the Nodal Officers. Apart from other functions, he
or she is also responsible for the proper functioning, maintenance of
hardware, etc.

(ix) Employee means a Government Servant who is serving as an officer

or a staff member in the Income-tax Department, whether on a regular
basis or temporary basis or on deputation basis, and who is on the
payrolls of the office of any of the following:

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a) Central Board of Direct Taxes
b) Chief Commissioner of Income-Tax
c) Director-General of Income-Tax
d) Commissioner of Income-Tax
e) Directorate of Income-Tax

3. Policy

3.1 Users are to be granted system access privileges to the IT Systems or ITD
Applications of the Income-tax Department to perform their assigned
work-related activities.

4. Policy Objective

4.1 The objective of this policy is to ensure that each authorised user is granted
necessary access privileges to the access the departmental IT Systems or ITD
Applications to perform their assigned work-related activities.

4.2 All accesses to the IT Systems or ITD Applications of the Department are
subject to monitoring by authorised personnel and an audit log.

5. Application

5.1 The policy applies to all employees requiring access to the IT Systems or ITD
Applications of the Department.

6. Policy Requirements

6.1 Users are to:

(a) Follow the procedure prescribed by the Department to obtain a single,

unique user-identification (User-ID) Code which is to be used for access
to the IT Systems or ITD Applications of the Department, and are to
comply with the rules and regulations associated with the use of their
User ID.
(b) Access IT Systems or ITD Applications only to perform their assigned,
work-related activities (for example, accesses are not to be used for
curiosity of personal gain, etc.).
(c) Ensure that their passwords are in accordance with IT Security Policy of
the Department. For example, the password should have a minimum of 8
alpha-numeric characters, not easily guessable, and should be changed at
least every month or immediately if it is suspected that they have been
compromised. Also, the password should never be revealed or shared
with anyone. Any violation would be at one’s own risk.
(d) Be reminded that they are accountable for all accesses and transactions
made with the use of their User ID.
(e) Be reminded that I.T. Systems or ITD Applications of the Department are
subject to monitoring by authorised personnel and audit log. By using
these I.T. Systems or ITD Applications to perform their assigned work-
related activities, each employee implicitly consents to such monitoring.

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An unauthorised use by employees in this regard may result in
disciplinary action and/or criminal prosecution. It may be noted that
disclosure of information in respect of assessees can only be made in
accordance with the provisions of Section 138 of the IT Act, 1961. The
Official Secrets Act also debars unauthorised disclosure of information.
(f) Ensure that their computer system is protected by a screen-saver,
approved by the Department, with password enabled protection; that their
workstation or computer system is set in lock-mode when unattended;
and if the lock-mode is not available, each person terminates (logs off)
any active sessions when leaving their workstation for any period of time.
(g) Ensure that their computer system is protected by access control (i.e.,
User ID and Password) and encryption methods (if required and as
prescribed), approved by the Department, in accordance with the IT
security policy of the Department; and
(h) Participate in security briefings organised by the Department.

6.2 Supervisory Officers are to:

(a) Determine, identify and approve necessary system access privileges for
users within their area of responsibility;
(b) Ensure that the user system access privileges are kept current, and
immediately revoked when no longer required (for example, on
termination of employment, transfer of employee, change in employee
functions, suspension, etc.) by advising the System Administrator or the
Data Base Administrator;
(c) Refuse, suspend or cancel access privileges on administrative grounds or
on security considerations.
(d) Review user system access privileges at least once in six months, or when
there is a change in the user’s assigned functions;
(e) Conduct periodic reviews to ensure that employee access to IT Systems
or ITD Applications of the Department are in accordance with their
assigned, work-related activities.

6.3 System Administrators are to:

(a) Ensure that all user requests for system access are approved by
Supervisory Officer prior to their creation;
(b) Maintain a local record of all system access privileges (for example,
profiles, systems, resources, administrative privileges, external systems,
etc.) for each user;
(c) Administer, maintain, suspend and delete user system access privileges as
requested by the users and their respective Supervisory Officers.
(d) Refuse, suspend or cancel access privileges on administrative grounds or
on security considerations.

6.4 Data Base Administrators are to:

(a) Ensure that all user requests for access to ITD Applications are approved
by Supervisory Officer prior to their creation;

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(b) Maintain a local record of all system access privileges (for example
profiles, systems, resources, administrative privileges, external systems,
etc.) for each user;
(c) Administer, maintain, suspend and delete user system access privileges as
requested by the users and their respective Supervisory Officers.
(d) Refuse, suspend or cancel access privileges on administrative grounds or
on security considerations.

6.5 Security Administrators are to:

(a) Ensure and/or provide users with security briefings from time to time;
(b) Ensure proper maintenance of IT Security Practices Undertaking Forms
III, IV and V submitted by the employees, Network Administrators,
System Administrators and Database Administrators.
(c) Ensure implementation of security policy.

7. IT Security Practices Undertaking Form III, IV and V

It is mandatory for all employees requiring access to the IT computer systems

and information resources of the Department to submit, duly filled, IT
Security Practices Undertaking Form-III to the Security Administrator through
their respective Nodal Officer.

It is mandatory for all Network Administrators to submit, duly filled, IT

Security Practices Undertaking Form-IV to the Security Administrator.

It is mandatory for all System Administrators or Database Administrators to

submit, duly filled, IT Security Practices Undertaking Form-V to the Security
Administrator.

8. Accountability Process

8.1 Adherence to this policy is subject to the annual security reviews conducted by
the officers of the concerned Computer Centre, as nominated for the purpose
by the respective CCIT or CIT. A report, in the prescribed form, of the annual
security review, so conducted, shall be sent to the Director of Income-tax
(Systems) by name in a sealed cover marked as “Confidential” through the
CIT/CCIT along with his comments and recommendations, if any necessary.
8.2 Inspections of the Computer Centres in this regard will also be carried out
periodically by the officials of the DIT (Audit) with the assistance of the DIT
(Systems). The frequency of inspections will be decided by the DIT (Audit) in
consultation with the DIT (Systems). Inspection reports in prescribed form
shall be sent to CIT/CCIT for his comments and recommendations, if any.
9. Inquiries
9.1 Inquiries regarding this policy should be addressed to the:
i) Security Administrator of the respective Computer Centre

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ii) Directorate of Income-tax (Systems),
ARA Centre, Ground Floor,
E-2 Jhandewalan Extension,
New Delhi – 110 055,
Telephone : 91-011-367 6480
Fax : 91-011-753 7339.

SECURITY POLICY GUIDELINES FOR

GRANT OF PRIVILEGES FOR ACCESS TO
INFORMATION TECHNOLOGY (IT) SYSTEMS AND/OR
INCOME TAX DEPARTMENT (ITD) APPLICATIONS

i) Only those employees of the Income-tax Department who have an Employee

Number will be granted access privileges to the IT Systems of ITD
Applications of the Income-tax Department to perform their assigned
work-related activities.
ii) All employees of the Income-tax Department, who have an Employee Number
and have been granted access privileges to the IT Systems or ITD Applications
of the Income-tax Department to perform their assigned work-related
activities, will ensure that:

a) No unauthorised hardware, software, modem, internet connection, etc., is

used on or in conjunction with IT Systems and PCs connected on the
Income Tax Network (TAXNET) or ITD Applications of the Income-tax
Department.
b) The software relating to any of the ITD Application, which might use the
Database of the Department, is developed without the prior written
permission of the DIT (Systems). There are, at present, nine Income-tax
Application Systems, such as, Initial PAN Allotment System (IPAN),
Assessee Information System (AIS), Tax Accounting System (TAS),
TDS Information System (TDS), Assessment Information System (AST),
Individual Running Ledger Account System (IRLA), Enforcement
Information System (EFS), Resource Management System (RMS),
Management Information System (MIS) and Judicial Reference System
(JRS) installed on the computer system at the National Computer Centre
at (NCC), Regional Computer Centres (RCCs), Computer Centres, on
Local Building Servers (LBS) and PCs on the network. More
Application Systems may be developed by the Directorate of Income-tax
(Systems) from time to time.
c) Small programs developed by the users for their day to day work on their
PCs may, however, continue to be used.
d) No unlicensed or pirated software shall be used on IT System including
PCs.
e) No unauthorised copying of application software or software product
shall be made.

iii) Sending or receiving e-mail within all offices of the income-tax Department
and the CBDT shall be allowed through the facility of cc:Mail.
iv) Sending or receiving of e-mail to or from parties or persons through Internet
shall be allowed through a gateway/proxy server to protect the Income-tax

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Systems and Income-tax Applications from viruses and hackers in the interest
of security of data and network.
v) Separate Internet connections through modems installed on stand alone PCs
shall be allowed to selected officers/offices who require Internet browsing for
discharge of official duties and are authorised by the Board.
vi) No software development utilities, like Oracle Forms, Reports, etc., will be
stored on the PCs of application users.
vii) The six-digit Employee Number, after prefixing it with a “U”, will be used as
the user account (User-id). In certain cases an employee may be granted two
or more Application Roles, e.g., an Assessing Officer may be granted two
roles of Assessing Officer (AO) and Drawing & Disbursing Officer (DDO).
However, he/she will have only one Employee Number, User-id and
Password.
viii) In the Main Menu, an option shall be available to the application user to
change his password. The users must change their password(s) at least once
every month, or immediately, if it is suspected that that they have been
compromised. Also, the password(s) should never be revealed or shared with
anyone.

For Systems Administrators/Data Base Administrators only

ix) SQL*PLUS (Structured Query Language, on ORACLE proprietary software,

with the help of which a user interacts with the ORACLE database without
going through any application software developed with the help of Oracle
Forms, Reports, etc.) will not be available to any application user. However,
only Data-base Administrator will be given SELECT privilege (view only) to
the databases of the Department via SQL*PLUS;
x) The application users will have read only access on the executables;
xi) At AIX level, application users will not be the AIX account holders. The
password of AIX account under which Oracle internal files like *.dbf, *.ctl,
*.ora, redo, logs, etc., will be known to the Data-base Administrator (DBA);
xii) On creation, the application users will only be granted “create session” system
privilege directly. Other privileges would be made available at run time
through the Oracle roles granted to the user by the DBA subsequently.
xiii) At database level, Oracle roles (henceforth called “Form Roles”) would be
created covering object or system level privileges related to running a form,
report or a batch program;
xiv) Higher level Oracle roles (henceforth called “Application Roles”), shall be
created by granting a set of Form Roles to an Application Role.
xv) Database authentication will be used as compared to Operating System (OS)
based authentication.
xiv) A parallel application user, namely, Global Income-tax Department User
Administration (GITDUSER), would maintain the ITD Application users and
their respective Application Roles. The Data-base Administrator will maintain
the relationship between the employees and the application roles granted to
them through the GITDUSER.

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Chapter – 11

ORGANISATION AND MANAGEMENT OF

COMPUTER RESOURCES

1. Comprehensive computerisation plan

1.1 The comprehensive computerisation plan approved by the Government in

October, 1993 envisaged:
i. A National Computer Centre (NCC);
ii. Regional Computer Centres (RCCs) and 33 Computer Centres. Later it
was decided to consolidate them into 16 RCCs;
iii. PCs for all officers in 478 cities having Income-tax offices;
iv. All PCs to be connected on Local Area Network (LAN) and Wide Area
Network (WAN) to respective RCCs and NCC;
v. Uniform and integrated application software all over the country;
vi. Regional databases and processing with decentralised input and output.

1.2 Objectives: The main objectives of the Plan were –

i. Better services to taxpayers and co-ordination among the various agencies

of the Department;
ii. Enhanced effectiveness of the Department by:
a. Reduction in tax evasion and improvement in level of statutory
compliance;
b. Strengthening intelligence sharing and data exchange for quality
scrutiny assessments;
c. Reduction in cost of collection.

2. Implementation of comprehensive computerisation plan

2.1 First phase: In the first phase, a National Computer Centre at Delhi and three
Regional Computer Centres at Delhi, Mumbai and Chennai were set up.
Offices in these cities were linked to the respective RCCs and the NCC
through leased lines data circuits. Officers in these cities were provided PCs
and Dot Matrix Printers. Terminal banks of networked computers were set up
in these cities for officers and staff to work on the application software.

2.2 Application software: The following customised application software were

developed for computerising the major functions of the department:

i. Initial PAN Allotment System, IPAN

ii. Assessee Information System, AIS
iii. Tax Accounting System, TAS
iv. TDS Information System, TDS
v. Assessment Information System, AST
vi. Individual Running Ledger Account System, IRLA
vii. Enforcement Information System, EFS
a. Search and Seizure Sub-system
b. Survey

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c. Tax-evasion Petition
d. CIB System, CIB
viii. Resource Management System, RMS
e. Financial Resource System, FRS
f. Physical Resources System, PRS
g. Pay-roll System, PAS
h. Manpower Management System
ix. Management Information System, MIS
x. Judicial Reference System, JRS.

The Judicial Reference System is an off-line system, supplied to all users on

CDs called TAEXPERT every quarter. It contains judicial decisions of High
Courts and the Supreme Court, CBDT Circulars, Instructions, etc. with search
and retrieval facility.

2.3 The work of procurement, development, maintenance and modification of all

types of application software has been centralised by the Board with the
Directorate of Income-tax (Systems) so as to ensure uniformity of application
software, and consistency and integrity of data. The Board has prohibited
local development of software or use of such software without the
authorisation of the Directorate of Income-tax (Systems).

2.4 Office automation software: An office automation software, ‘Lotus Smart

Suite’ has been provided. It consists of the following modules:
i. Lotus Word-pro
ii. Lotus Organiser
iii. Lotus 1-2-3
iv. Lotus Approach
v. Lotus Freelance Graphics

An Indian language software ‘leap’ has also been provided with all PCs.

2.5 Electronic mail: A limited e-mail facility has been set up through cc:Mail to
officers in Delhi, Mumbai & Chennai, and 2 users each at the 33 Computer
Centres.

2.6 Second phase: In the second phase, 33 Computer Centres were set up in
major cities across the country with IBM RS6000 Servers. All Officers up to
the level of ITOs were provided PCs. The networking was taken up in 57
major cities. This required setting up of LAN and WAN connectivity through
Leased lines with ISDN lines as backup. Nearly 7800 PCs were installed in
various offices throughout the country. Networking of offices in the
remaining 418 cities is to be taken up in third phase of computerisation.

2.7 Implementation in phase-II and phase-III cities: Due to absence of

connectivity, implementation in the 33 Computer Centres (other than Delhi,
Mumbai and Chennai) was initially restricted to—
i. Allotment of PAN (IPAN)
ii. Tax Accounting System (TAS)
iii. Manpower Management System (MMS)

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iv. Assessee Information System (AIS)

Implementation of all applications has since been extended to 57 cities which

came on the network in Phase II.

3. National Computer Centre

3.1 In order to ensure uniformity in implementation of policies and their

monitoring, it was necessary to create a national database for maintaining data
which would be accessed by all users all over the country. Besides, since
there is a large mobility of taxpayers from one place to another and many
assessees have establishments in different parts of the country an all-India
unique PAN is an absolute must for the Department to operate systematically.
A national database was necessary for this purpose also.

3.2 Role of Directorate of Income-tax (Systems): The Directorate of Income-tax

(Systems) is responsible for conceptualisation, planning, procurement,
installation and maintenance of critical hardware, etc., procurement of
software packages; development and maintenance of application software,
technical support to RCCs and other departmental users, management of
national databases, monitoring of all-India network, recruitment of technical
personnel, computer – related training of non-technical and technical Officers
and staff, etc., as part of modernisation of the Department through
comprehensive computerisation. Implementation of application software and
getting work done on computers is the responsibility of the CCITs, and the
CITs(CO)/CITs.

3.3 Functions: The National Computer Centre (NCC) in the Directorate of

Income-tax (Systems), functions as the hub for all the Computer Centres of the
Department all over India. The functions of NCC are as under:

i. Maintaining the national database of data required to be accessed by users

all over the country, viz.,
a. Basic data of all employees for allotment of employee number.
b. Complete data of Group ‘A’ and Group ‘B’ officers.
c. Various codes used by different applications all over India.
d. All-India AO Codes and AO hierarchy.
e. Parameters such as those related to assessment, rates of income-tax,
cadre details, pay scales, etc.
ii. Maintaining a national PAN database.
iii. Allotment of a unique PAN on the basis of data uploaded by various
Computer Centres.
iv. Managing the National Software Development and Maintenance Centre –
for meeting the needs of development/maintenance of application software.
v. Managing the National Technical Support for providing assistance to
various Computer Centres in –
a. Database administration
b. Network management
c. System administration
d. Implementation of application software

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vi. Maintaining back-up of critical data of all centres for disaster management.
vii. System tuning for better response time.
viii. Database auditing and security checks.
ix. Hardware/software capacity design using various benchmarking
techniques, drawing software specifications and assistance in procurement
process.
x. Defining of policies, e.g., procurement policy, security policy, etc.
xi. Conceptualisation, planning and implementation of information technology
programmes.

3.4 Responsibilities: The major responsibilities of the Directorate of Income-tax

(Systems) are:
i. Developing, designing and planning implementation programmes for
computerisation.
ii. System analysis, design of system and network architecture, capacity
planning, and upgradation/augmentation of system resources.
iii. Setting technical specifications for hardware, and software.
iv. Technical evaluation and procurement of hardware, network equipment,
etc.
v. Installation and maintenance of critical hardware.
vi. Procurement of operational and system software, office automation
software.
vii. Development, maintenance, and modification of application software.
viii. Upgradation of operating system as well as RDBMS.
ix. Maintenance and security of National Computer Centre database.
x. Technical support to departmental users.
xi. Recruitment of technical staff.
xii. Training of technical and non-technical staff in use of computer resources.

4. Regional Computer Centres

4.1 The Regional Computer Centres (RCCs) and other Computer Centres are other
regional hubs for all computerisation activities. Data is stored in regional
databases and processed. These centres cater to the processing and technical
needs of all users in their regions. Eventually the existing 3 RCCs and
33 Computer Centres would be merged into 16 RCCs – each under a CIT
(CO), and connected to all Income-tax offices in that region. These will be the
live links between the NCC and the end-users. The RCCs would function
under the administrative control of the Chief Commissioner of Income Tax.

4.2 Functions of RCCs: The major functions of the RCCs are as under:
4.2.1 Activities relating to database administration:
i. Maintenance of RCC as well as databases of local building servers (LBS).
ii. Maintenance of passwords of super-users of the system and oracle users.
iii. Upgradation of AIX/ORACLE version of RCC and LBSs.
iv. Maintenance and safeguarding of hardware.
v. Safe custody of master copies of all software, e.g., ORACLE/AIX/Novell
Netware/Windows NT, etc.
vi. Taking periodical backup of the system as well as the database.

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vii. Co-ordination with NCC/DIT (Systems)/nodal officers of LBS & terminal
banks.
viii. Recovery of database from backups in case of any failure.
ix. Co-ordination with software/hardware vendors.
4.2.2 Activities relating to network administration:
i. Managing the local area network, (LAN) and
ii. Installation, commissioning and maintenance of the Wide Area Network.
iii. Monitoring the performance and health of the network.
iv. Ensuring security of the network.
4.2.3 Activities relating to system Administration:
i. Implementation of Application software and System software.
ii. Refreshing of database snapshots owned by various application software.
iii. Creation and maintenance of application users.
iv. Granting of application roles to application users.
v. Data-entry in respect of IPAN, TAS, MMS, etc.
vi. Management of System for processing work of all application software.
vii. Providing assistance to application users.
4.3 Responsibilities: The major responsibilities of the RCCs and Computer
Centres are as under:
i. Installation and maintenance of all non-critical hardware, including local
building servers.
ii. Installation and maintenance of hardware.
iii. Management of RCCs and the hardware, software installed there.
iv. Implementation of centralised activities of all application software, e.g.
IPAN, AIS, TAS, MMS.
v. All possible help and training to end-users in implementation of application
software.
vi. Maintenance of Regional Computer Centre database.
vii. Co-ordination with network server providers such as DOT, etc.
viii. Ensuring the working of communication lines.
ix. Co-ordination with hardware vendors.
x. Taking system as well as database backups as per established schedule.
xi. Maintenance and proper storage of backup media/software library.
xii. Working on application software as per defined application roles.

4.4 Functions of CIT (CO): Each RCC is headed by a Commissioner of Income-

tax (Computer Operations). Other Computer Centres have also been placed
under the functional control of the CITs (CO). Their major functions are:

i. Working as liaison officer between the Chief Commissioners/CITs and

DGIT (Systems)/DIT (Systems).
ii. Management of the RCC, Computer Centres and terminal banks in their
charge.
iii. Working as liaison officer between Department and outside agencies such
as banks, telephone department, etc.

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iv. Implementation and maintenance of centralised application software
(IPAN, AIS, TAS, and MMS).
v. Providing help, training and support to end users in implementation of
other application software, and monitoring their performance.
vi. Implementation of technical instructions concerning implementation of
information technology issued from the CBDT/DGIT(S)/Directorate of
Income-tax (Systems).
vii. Maintenance of hardware, and networking including annual maintenance
contracts.
viii. Resolving day-to-day problems of officers/officials in implementation of
the computerisation programme.
ix. Management of all types of backups such as system backup, database
backup, and software library.
x. Security of system and data.

4.5 Local building servers: Local building servers (LBS) have been provided in
all major buildings on the network. These hold local data, temporarily, till it is
uploaded to respective RCCs. The existing 33 Computer Centres, i.e., other
than at Delhi, Mumbai and Chennai, will be consolidated into 16 RCCs. The
remaining centres would work as local support centres depending the
workload and the administrative requirements. The day to day management of
Local Building Servers is the responsibility of non-technical personnel who
have received training in operating Xeon servers.

4.6 Nodal officers

4.6.1 A large number of PCs, printers and CVTs have already been supplied to
officers upto the level of Income-tax officers. In order to co-ordinate activities
relating to computerisation and maintenance, the Board has decided that there
would be one Nodal Officer in each building where PCs have been installed.
CCITs have nominated Nodal Officers for each town/city and for each
building in all major cities. These officers should be nominated by
designation and would remain permanent to the post. The CIT (Computer
Operations) and/or one Additional/Joint Commissioner of Income Tax should
be designated as co-ordinating officers between the nodal officers and the
Directorate of Income-tax (Systems). Their addresses, telephone and FAX
numbers should be intimated to the Directorate of Income-tax (Systems).

4.6.2 Functions of Nodal Officer: The main functions of the nodal officers are:

i. Primary point for receipt and distribution of PCs, other hardware and
software amongst the Officers in the town/city/building.
ii. Reporting any shortcoming or shortage in supply, to the Commissioner of
Income-tax/Commissioner of Income-tax (CO)/Directorate immediately.
iii. Maintenance of stock register for hardware and software received and
distributed amongst different officers.
iv. Receipt and distribution of Judicial Reference System (Taexpert) amongst
officers.
v. Co-ordinating any shifting of PCs, etc.
vi. Keeping track of handing/taking over of PCs, etc.

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vii. Co-ordination of all maintenance problems of PCs, printers and CVTs with
users, vendors, AMC vendor, CIT (CO) and the Directorate.
viii. Maintenance of a site call register for complaints in respect of hardware
and visits by the vendors indicating when the complaint was attended to
and the faulty equipment was set-right, and generating down-time reports.
A consolidated quarterly down-time report would be sent by the Nodal
Officer to the Addl./Joint Commissioner of Income-tax (Systems) and CIT
(CO) by the first week of the following quarter.
ix. Vendors are required to give a certificate of quarterly preventive
maintenance service in the prescribed format. This is collected by them
from the nodal officers.

4.7 Functions of terminal banks: Terminal banks have been provided in all
major buildings in Delhi, Mumbai, and Chennai. The functions of the Officers
incharge of these terminal banks are:

i. Maintaining LAN and WAN connectivity for the PCs.

ii. Maintaining executables of various ITD applications.
iii. Storing intermediary data in respect of certain ITD applications such as
AST, TDS, etc. for subsequent upload to RCC database.
iv. Facilitating data entry and processing by the staff/AOs posted in respective
buildings, including allocating computer time slots amongst users.

4.8 Functions of systems administrator: A senior technical officer in the

computer centre should be designed as system administrator. This is a key
position in overall management of the computer centre. As more users are
added to a system his job becomes more important and complicated.
Networked systems increase the complexity. His functions include:

i. System start/shutdown.
ii. Managing users, adding new users and new groups when required, and
deleting invalid users.
iii. Assigning priorities and scheduling jobs.
iv. Applying upgrades and maintaining log of upgrades.
v. Disk management in co-ordination with DBA for optimal storage and other
database/application needs.
vi. System backup, recovery and safe storage of backup media.
vii. Managing file systems and free space and creating new file systems or
logical volumes when required.
viii. Maintaining system software and installation of new software after
verification.
ix. Monitoring CPU usage and identifying bottlenecks after installation.
x. Monitoring system hardware, security and root password.

4.9 Functions of database administrator: The database administrator is another

key technical functionary in the NCC, and RCCs/Computer Centres. His
functions include:
i. Start-up/shut-down of instance and database.
ii. Installing and upgrading Oracle server and application tools.

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iii. Allocating system storage and planning future storage requirements for the
database.
iv. Creating and modifying primary objects (tables, views, indexes) and
database structures (table spaces).
v. Enrolling users, controlling and monitoring user access to database and
maintaining system security.
vi. Backing up and restoring the database.
vii. Monitoring archive log and maintaining archived data on tape.
viii. Monitoring, tuning and optimising database performance.

4.10 Role of Chief Commissioners, Commissioners and other supervisory

authorities: Since the Department has decided to fully computerise its
activities, and restructuring is premised upon this, all officers have a direct
responsibility to ensure that the work is carried out using the departmental
application software at least at the stations already on the network. The main
application systems AIS, AST, IRLA, TDS, and CIB require decentralised
implementation at the level of the AOs and their subordinate officials. Each of
these, software provide specified roles and privileges for officials of different
levels laying down activities which can be undertaken by these officials. This
is in turn controlled by employee codes and passwords allotted to these users
and audit trails of the activities carried out by them. The main responsibility
of senior officials at the level of Chief Commissioners, Commissioners and
other supervisory authorities is to ensure that the necessary computer
resources, i.e., hardware, network, software, and training is available, that,
standing instructions regarding maintenance of hardware, network facilities,
security, and implementation of departmental applications are followed by all
concerned; that, problems encountered in implementation are resolved at local
levels if possible, and reported to CIT (CO) or DIT (System) if necessary, for
their solution. These senior functionaries must ensure that prescribed duties
and functions are carried out by their subordinates; and that, records, reports,
etc., are maintained and submitted as prescribed.

5. EDP cadres in the Department

5.1 Sanctioned strength: The technical cadres created to provided technical

support to the computerisation plan, and to attend to hard core technical
activities comprise:

i. Joint Director (Systems)

ii. Deputy Director (Systems)
iii. Assistant Director (Systems)
iv. Data Processing Assistants Grade ‘B’
v. Data Processing Assistants Grade ‘A’

5.2 The various cadres of Data Entry Operators have been merged in the cadres of
Tax Assistants and Senior Tax Assistants after cadre restructuring.

5.3 Responsibilities of EDP officers: The responsibilities of EDP officers are as

under:

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Designation Work Allocation
Dy. Directors, and Shall write, test, debug and implement the application
Assistant Directors programs in accordance with the specifications laid
(Systems) down by the Assistant Director/System Analysts shall
be maintaining the software programs with reference
to further updations and optimisation, shall supervise
work of Data Processing Assistants and Data Entry
Operators.
Data Processing In addition to the jobs mentioned for Data Processing
Assistants Grade ‘B’ Assistant-A, Assistance in planning, Scheduling, Co-
ordination and implementation of interrelated and
integrated data processing, and supervision of the
work of Data Processing Assistant – Grade ’A’
Data Processing Assistance in design, development and
Assistants Grade ‘A’ implementation of information systems and
Databases, their Operations and Analysis, including
Assistance in System Analysis, programming, data
organisation, data collection, collation validation,
coding, processing and maintenance of all forms of
data including alpha-numerical, textual, graphic,
voice and optical, and operation of all EDP
machines/Computer/Computer based equipment/
Computer based instruments/Computer based on-line
or real time systems/Computer network-based
systems, etc.

6. Hardware maintenance

6.1 Equipment Management: A large number of PCs, Dot Matrix Printers and
CVTs have been supplied to Officers up to the level of ITOs. Nodal officers
in all regions are required to maintain proper stock registers of all hardware
and software and keep the same under proper security. Since these are costly
equipment, a procedure for handing-over and taking-over of these items has
been laid down by the Board as a formal part of the handing over/taking over
report.

6.2 Shifting of PCs and accessories: Some PCs, Printers & CVTs are shifted by
users not only from one room to another but also from the terminal banks
without the knowledge of the CIT (CO) or the Joint CIT (Systems) or Nodal
Officer or the hardware vendor. Since these PCs are on network and certain
software like Oracle – Developer 2000 has been installed on them to enable
the users to work on the various application software the result of such
improper shifting will be that:

i. The new PC may not have Oracle Developer 2000 to enable the user to
work on application software like AIS, AST, IRLA, EFS, EFS, etc.
ii. Pentium–II or Pentium–III PCs having Windows’ 98 or Windows’ 2000
will not work with the application software which is at present only enabled
for Windows’ 95.
iii. PCs may not be connected on the network; and

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iv. The new machine may not be configured as Netware client for Netware
connectivity. Further, after installation of Developer/2000, the client PC is
required to be configured for SQL*Net for Oracle level connectivity.

The users may not be aware of these implications whereas the CIT (CO) or
Joint CIT (Systems) will be able to plan and ensure proper working. In terms
of the agreements with the vendors, and AMC service providers, shifting of
the PCs from one site to another has to be done under the supervision of an
engineer of the vendor otherwise the vendor may not provide maintenance. It
is, therefore, essential that equipment should only be shifted with the
knowledge of CIT (CO) of the Addl./Joint CIT (Systems) or the Nodal Officer
and after contacting the vendor.

6.3 General precautions: Some general precautions that need to be observed

while working on computers are as under:

i. Taking regular backups of critical data. Backups insure against data loss.
ii. Wipe the machine and monitor with a clean dry cloth.
iii. Keep your workplace clean and dust free.
iv. Scan all floppies for virus before using it on your system.
v. Keep your system locked and under password protection to avoid any
tampering.
vi. Ensure that proper and stabilised power is being used for the system. The
power correction equipment like UPS & CVT should be checked
periodically.
vii. Call the service engineer in case of any problem.
viii. Do not carry eatables and liquids near the machine.
ix. Do not shift/remove the system from the place where it has been installed
without informing the hardware vendor.
x. Do not connect mouse, keyboard, printer connectors, etc. without checking
the polarity.
xi. Do not connect third party equipment/devices like printers, adapter cards,
etc., to your machine. In case of such requirements call the hardware
vendor.
xii. Do not change power points without approval from the service engineer.
xiii. If you are using AIX/UNIX on your system do not switch OFF your
machine abruptly. Do a proper shutdown before powering OFF.

6.4 Maintenance of log book: A preventive maintenance schedule should be

maintained. Whenever a computer system/equipment is down or there is any
problem with application software, etc., and a complaint is made with the
vendor, full details may be maintained at the centres. In case of problems
relating to application software/OS/RDBMS, it may also be indicated how the
problem was resolved. In case of ‘critical’ equipment is giving rise to a
recurrent problem, the Directorate may be informed so that the matter can be
taken up with the vendor before making the final payment. A log book should
be maintained in the proforma for ensuring smooth functioning and
maintenance of hardware and UPS systems.

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6.5 Inventory management
6.5.1 Receipt and custody of items of hardware/software documentation, etc.:
The Nodal Officer or any other officer authorised by the CIT (CO) may be
designated as the officer incharge to receive all the hardware, systems
software, software on magnetic media and documentation.
6.6 Stock register: All items of hardware, software loaded on the systems,
software on magnetic media, documentation, furniture, etc., should invariably
be entered in a stock register to be maintained in Forms 1 to 7. A numbering
system may be ensured. The officer incharge will ensure that the same
reference number, as mentioned in the stock Register, is properly marked on
the relevant hardware/software media/documentation (manuals), furniture, etc.
7. Network administration
7.1 Components of Cabling System: Networking involves connecting the PCs
through a cable and switches to a local building server called local area
networking (LAN). This is then connected to a central server at another
location through communication channels, e.g., dial up telephone lines or
leased lines, or ISDN lines, or V-satellite link, or wireless radio link, etc. This
is called Wide Area Network or WAN.
7.2 Local Area Networking: The major components in a structured cabling
system:
i. Wiring centre/closet
ii. Networking equipment
iii. Patch cable/cord
iv. Patch/jack panel
v. Horizontal cable
vi. Information outlet
vii. Mounting cord
viii. Terminal equipment

7.2.1 Wiring centre/closet: This is typically a 19 inch wide rack which houses the
networking and cabling equipment (like hubs, switches and patch/jack panels).
This closet forms the centre of the cabling system. These can be wall mounted
or floor mounted. Separate connections are taken to each computer and server
to be connected on the network.

7.2.2 Patch cable/cord: The cables are used to connect the networking equipment
and the patch/jack panels as shown in the above figure. The cables have
RJ-45 connecters clamped at both ends.

7.2.3 Patch/jack panels: These are passive cabling equipment used to connect the
horizontal cable coming from the user work area and in turn the patch cords to
the networking equipment. The horizontal cable (CAT 3, CAT 5, etc.) is
clamped at the back side of the jack panels. At the front jack panels have
RJ-45 ports in which one end of the patch cable/cord is connected.

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7.2.4 Horizontal cable: The horizontal cable is a twisted pair copper wire
supporting different cabling standards (CAT 5, etc.). Generally each cable has
four twisted copper pairs. One end of the cable is clamped at back of the jack
panel and the other end of the cable is clamped at back of the information
outlet.

7.2.5 Information outlet: This is a passive device which connects the horizontal
cable and the mounting cord. At the back of the information outlet the
horizontal cable is clamped. The front of the information outlet has RJ-45 to
which one end of the mounting cord is connected.

7.2.6 Mounting cord: Mounting cord is used to connect the information outlet
(having RJ-45 port) and the networking interface card (NIC with RJ-45 port)
present in the user’s computer. At both ends of this cable RJ-45 jack is
clamped. The patch cables/cords, horizontal cable, mounting cords are copper
cables. They have four twisted pairs of copper cables and these cables are
called UTP (unshielded twisted pair) cables. The maximum distance between
the Networking equipment and the computer is approximately 90 metres.

7.2.7 Hubs or Repeaters: Hub is an active networking equipment to which various

computers and server are connected and its acts as common shared media for
communication between them. Shared media means that only two systems
connected on the Hub can communicate with each other at given point of time.
Hub is also known as multi-port repeater. Hub has RJ-45 ports. This
equipment operates on physical layer of the OSI model.

7.2.8 Switches: Switch is an active networking equipment to which various

computers and servers are connected and it acts as switched media for
communication between them. Switched media means that multiple
communication sessions between different systems can take place at a given
point of time. Switches can provide segmentation within a network. Switch
has RJ-45 ports. This equipment operates on data link layer of the OSI model.
The performance of the network increases when the switch is used instead of
hub.

7.3 Wide Area Networking: The communication link being used in the
department for WAN are mainly leased lines of 64 Kbps capacity, with ISDN
lines as backup. RCCs at Delhi Chennai, and Mumbai have been provided
2 Mbps lines. Some of the smaller stations are connected on dial-up telephone
lines. The main components of WAN are Routers. They are active
networking equipment connecting different networks. They operate on
network layer of the OSI model. Routers are protocol dependent and media
independent. They use routing algorithms and protocols to determine the
route from one network to another. Routers can support various
communication media like leased lines, ISDN and dial-up.

7.4 Communication media

7.4.1 Leased lines: These are a point to point dedicated link between two stations
over voice-grade lines. These use leased line modems for communication.

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Generally leased lines are available with speeds of 64/128 Kbps and 2 Mbps.
Lease lines provide high speed links and are quite reliable for data, voice and
video. For each leased line 2 pairs of leased line modems are required.
7.4.2 ISDN: ISDN stands of integrated switched data network and is a dial up
connection supporting speeds up to 128 Kbps. It supports data, voice and
slow scan video and is reliable. Network terminators are used for
communication over the ISDN connection.
7.4.3 Dial-up: This media is normal dial-up telephone service. It can support up to
maximum of 56 Kbps depending upon the line conditions. In this normal
dial-up modems are used for connectivity.

7.5 Daily log-register for leased data circuits: Inter city as well as intra city
leased lines go down frequently. Since a number of income-tax application
systems are on-line applications and substantial amounts are being paid as
rental it must be ensured that the leased circuits are always up. It is, therefore,
essential to maintain a log of the status of each leased circuit at both ends in
the enclosed format prescribed for the purpose. For example, for the
Delhi-Bombay circuit, a log will be maintained at the Delhi NCC as well as at
the Bombay. Similarly, for the Delhi RCC and NCC, logs will be maintained
both at the Delhi RCC and Directorate of IT (Systems). The status log is to be
maintained at least four times a day. However, for longer hours of working
the status log can be taken more number of times. Status of down time may be
reported to the respective telephone authorities on regular basis and to the
Directorate on monthly basis so that the issue can be taken with MTNL/BSNL
for the purpose of keeping the leased circuit up at all times and for getting
appropriate adjustments in lease rentals. The officers in the Computer Centre
should disconnect the telephone instruments from the dial up lines
immediately. This will ensure that there is no misuse of these lines. These are
meant exclusively for connectivity with NCC. These measures will also lead
to reduction of telephone bills on account of misuse of these lines.

8. Security

8.1 Security: The Department has a fairly large database of taxpayers and tax
payments. This is a valuable asset for effective functioning of the department.
It is likely to increase manifold once the entire assessment, TDS and CIB work
is taken up on computers. Since computerisation results in concentration of
huge amount of information at one place, it also becomes vulnerable to serious
security risks.

8.2 Security guidelines: For the security of installations at RCCs and the
confidential information stored in the database on RS6000 servers, following
security guidelines have been provided:

i. The Computer Centre may be declared restricted area.

ii. The entry into the Computer Centre should be regulated strictly.
iii. The main server (IBM RS6000 59H/F50/F40 system) may be kept in a
separate cabin or room. The access to such cabin/room should be entrusted
to a maximum of two persons. For all other persons the server room should
be “Out of Bounds”.

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iv. A visitors’ register may be maintained in the Computer Centre. All visitors
including service engineers attending to the equipment in the Computer
Centre should make proper entries indicating the date and time of entry and
departure in the register.
v. The passwords of super users of the server (root oracle) Oracle RDBMS
system and all other users with DBA role) and applications should be
maintained by the System Administrator/Application Administrator.
vi. No user other than the Database Administrator should be given the DBA
role. Ordinarily the senior most technical person should be made
responsible for managing all these users and the privileges assigned to
them. Needless to say that the passwords by all the users should be
changed frequently and kept religiously secret.
vii. The passwords of super users should be changed at least once in a fortnight.
These passwords should be known only to the Database
Administrator/System Administrator of the centre. These passwords may
be required by the technical support group in the office, the DIT (Systems)
and the representative of the authorised vendors (IBM Oracle and TCS) to
provide technical support. A record of such events of sharing of passwords
may be maintained. The password should be changed immediately after
completion of the technical support activity.
viii. One copy of the latest passwords of super users may be kept in personal
custody of the CIT incharge of the Computer Centre in a sealed envelop for
use in any emergency.
ix. Application roles should be granted to users on the basis of job allocation.
No user should have more roles than that required for functions required to
be performed.

8.3 Super user: Security features have been provided, both at the operating
system as well as the application software level through passwords for
entering into the system. Each user will have a password for his log in
accounts. These systems have a privileged user called rot who is a super-user
and has all privileges for the system. This password is of utmost importance
and it should be known only to the officer so authorised. This officer in turn
assigns passwords to other users. The name and designation of the officer as
super-user must be intimated to the Directorate of Income-tax (Systems).
8.4 Password security and audit trail

8.4.1 Applications Software developed by the Income-tax department have been

protected by giving specific roles to the officials on the basis of their area of
work. Users are created within each application which are in turn validated
from the Manpower Management System (MMS). While creating the user
and assigning an application role, a default password as his/her user id is
assigned to a user. The user is required to change the password as soon as
possible. Within the application, to maintain, a second level security for the
database, the password of each user is encrypted so that an application user
can not login to the database using SQL. The application roles of users should
be strictly monitored and no user should be in possession of any role
incompatible of his/her functional requirement at any point of time.

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8.4.2 The activity carried out by an application user is recorded in the database.
This is known as maintaining of an ‘Audit train’ so that afterwards the user
can not disown the responsibility. So, it is important for users not to share
their ‘user id/password’ with any body else. Users should also change their
password very frequently i.e., at least once in a month or if it is suspected to
have been compromised.

8.5 Use of internet on network computers: According to the Board’s

instructions, all users have been prohibited from using unauthorised hardware,
software, modems or other networking equipment with the PCs connected on
the departmental network. No user is allowed to use an Internet Connection
on PCs connected on the Income Tax Network (TAXNET). This is to
strengthen the database security by disallowing access to unauthorised/non-
privileged users. The Board can authorise officers who need to have an
Internet connection for official use, to obtain such connection on standalone
PCs.

8.6 Overall security policy for IT systems laid down by the Board: A
comprehensive security policy has been adopted by the Department.

8.7 Virus protection: A computer virus is a program (or instructions hidden

within a program) that can “infect” files an programs on the computer. Unlike
most other programs, viruses are specifically designed to spread themselves.
Some viruses can display a message or cause erratic screen behaviour. Others
are destructive, erasing or damaging files, or overloading memory and
communication networks. Some safeguards to avoid virus are:

i. Install an anti-virus program that looks for viruses on the computer. The
selection and supply of anti-virus program will be made centrally by the
Directorate. Check for viruses on a regular basis. When a virus is found, it
should be removed immediately. This might be as simple as replacing a
file or it might require the assistance of a trained technician.
ii. Write-protect original program diskettes before using them. This ensures
the diskettes will not be infected if a virus is already present in the
Computer.
iii. Avoid using programs and diskettes from unknown sources. Share
information on diskettes only with other computer users who are well-
known.
iv. Use password protection to limit access to the computer or the network.
v. Do not disclose your password to any unauthorised persons.
vi. Do not bring any outside floppies without having them scanned for virus
presence.
vii. Computer Games and Illegal copies of any software are major sources of
virus.
viii. Take regular back up of data.
ix. All programs on a system should be checked regularly for size changes.
Any size deviations could be evidence of tampering of virus infiltration.
x. Purchase software not only in sealed packages but also from reliable
sources only.

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xi. If reformatting is required after any PC maintenance, reload the hard disk
from reliable source diskettes and data backups.
xii. Backup copies of all original software should be made as soon as the
package is opened and stored off-site.
xiii. Do not allow the downloading of software from a bulletin board system or
other On-line services, except to one stand-alone PC designed for this
purpose.
xiv. Don’t use illegal copies of programs that have been “hacked” to remove
copy protection.
xv. First and always: make frequent backups! One set is not enough – use
several sets of backups in rotation. Design and implement a good backup
policy.
xvi. If a virus does infect a PC, causing “strange” program behaviour, do not
take the program to another machine to try it. This may spread the virus. If
the hard drive is infected, reformat it (and all the floppy diskettes
containing programs), and reload all the programs (including DOS) from
the manufacturers’ write-protected diskettes.

9. Back-up procedure

9.1 Full back-up: Regular backups of data are taken at NCC, RCCs, Computer
Centres and LBS. An Official is designated to take backups of data on a
regular basis. A critical part of backup data, is sent to the Directorate of
Income Tax (Systems) fortnightly by all RCCs and Computer centres till a
disaster recovery site is set up, to recover data in case of any unfortunate
incidents like fire or any other disaster.

9.2 Procedure of taking back-up: Full back-up is taken on fortnightly basis. The
steps involved in taking the back-up are as under:-

i. In the evening of the first working day of the fortnight, a full back-up of the
database as well as incremental back-up may be taken, on separate media.
ii. On other working days of the fortnight only incremental back-up may be
taken.
iii. Three copies of both the full and incremental back-up may be taken.
iv. Back-up for the fourth fortnight may be taken on the tapes used for first
fortnight. Back-up tapes of the second fortnight may be used for the fifth
fortnight Back-up and so on.

9.3 Precautions: All back-up related activities should be initiated in a stand-alone

mode after closing the shift for the day. All the tapes should be properly
documented including numbering of the type of back-up method used. The
archive log files may be regularly deleted after taking the back-up.

9.4 Storage: One set each of the latest copy of full back-up (fortnightly),
incremental back-up (daily), EXPORT back-up (daily), and the back-up of
photograph and signature files should be kept at different locations in different
premises in fire resistant cabinets. This is necessary for disaster management.
A media register should be maintained to record the contents and location of
back-up media.

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9.5 Labelling of back-up media: Labels of different colours (red and blue)
should be put on each back-up media. The ‘Inventory number’ may be put on
the red label as permanent identification number of media. Description of the
back-up, tape sequence number and date of back-up may be mentioned on the
blue-label. The label should be changed every time the contents of the media
are changed.

10. Reports

10.1 Computerisation is one of the main thrust areas of the Department. It is

monitored at the level of the Directorate of Income-tax (Systems) and the
Board through the Monthly Activity Report to be sent every month by 3 rd of
each of the following month.

11. Future direction

11.1 The Department has adopted a document called ‘Direct Taxes India Vision
2005’ laying down the strategy for its modernisation during 2000-05. This
defines key goals and objectives, and the key results to measure achievement
of those objectives. The department’s key goals are increasing the size of tax
base and the quantum of revenue, improving the quality of service to
taxpayers and reducing cost of collection. Some of these key result areas are
directly to implementation of the computerisation plan in the Department.

11.2 Key results

11.2.1 The key results for widening of the tax base are:-

i. Making online allotment of PAN.

ii. Processing of returns on computers.
iii. Computerised monitoring of filing of returns to identify stop-filers and
non-filers.

11.2.2 The key results identified for modernisation of business processes and
enhancing bulk handling capacity are:-

i. Starting proper data capture from income tax returns.

ii. Introducing electronics and fund transfer for tax payments and refunds.
iii. Operationalising AIS, AST and IRLA throughout the country.

11.2.3 The key result areas identified for anti-tax evasion work are—

i. Revamping procedures of collecting information through CIB and creation

of All India data bank of high value financial transactions where quoting of
PAN or deduction of tax at source is mandatory.
ii. Creating a mechanism for assessee-wise transaction database including
countrywide computerised TDS networking.
iii. Computer assisted selection of cases of scrutiny, based on objective
criteria.

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11.2.4 In the area of better client service the key initiatives identified are:

i. Door step services, e.g., mailing of blank returns, PAN stickers;

ii. Dissemination of information through web site, Interactive Voice Response
System (IVRS);
iii. Starting initiatives for:

a. Electronic data interchange with other departments

b. Filing of annual TDS returns on magnetic media
c. Computer connectivity among enforcement agencies and banks
d. Electronic return filing.

Chapter – 12

VIGILANCE

1. Introduction

Literally, the word ‘vigilance’ means nothing more than “alertness” or

“watchfulness”. In the context in which the word is used in bureaucratic
parlance, however, it has necessarily to be construed as “watchfulness” or
“alertness” against deviant or unacceptable conduct or practice.

It follows that the purpose of vigilance is not to create a fear psychosis in an

organisation, de-motivate IT officials or stifle decision making. The
performance of vigilance functions would become dysfunctional if it has this
effect. On the other hand, if such functions are performed with sensitivity,
they might have the opposite effect of promoting probity and enhancing
managerial efficiency and effectiveness at all levels. Vigilance mechanisms
would then act as deterrent to misconduct and help officials to achieve results
within the framework of their rules, regulations and norms. All this is only
possible, however, if vigilance is regarded as an integral part of management.

2. Vigilance Organisation

Central Vigilance Commission

The Central Vigilance Commission was set up by the Government of India in

February, 1964 on the recommendation of the Santhanam Commission under
the Ministry of Home Affairs.

In any case where it appears after a preliminary inquiry, that a public servant
either acted or abstained from acting, from an improper or corrupt motive, the
Commission advises the disciplinary authority on the action to be taken
against the public servant concerned.

The jurisdiction of the Central Vigilance Commission is co-terminus with the

executive power of the Union. It extends to all employees of the Central
Government. Out of practical considerations, however, currently, the
Commission ordinarily advises on cases pertaining to gazetted officers at two

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stages: once, after the completion of the preliminary enquiry (1st stage advice)
and secondly, once again after the disciplinary enquiry is complete (2nd stage
advice).

Director General of Income Tax (Vigilance) and Chief Vigilance Officer,

CBDT

The Vigilance set-up of the Income Tax Department is headed by the Director
General of Income Tax (Vigilance). He is also the Chief Vigilance Officer of
the organisation. He is responsible for taking the initial decision on
complaints against Group-A officers. He is also required to maintain an up to
date record of such complaints and their latest status, through the prescribed
registers, for submission of quarterly reports to the CVC, DOP & T etc. All
the complaints against Group-A officers are, therefore, required to be
forwarded to him for registration in the CVO’s register as well as for further
necessary action.

As CVO, he is required to examine and comment on all proposals where a

reference to the CVC is required to be made. Apart from the officers posted in
his headquarters, who assist him in initial processing of complaints and post
disciplinary proceeding cases of Group-A officers, four regional Directorates
of Income Tax (Vigilance) assist him in conduct of preliminary verifications
or investigations. He makes all vigilance related references to CBDT, CVC,
DOPT, UPSC etc. All such references should, therefore, be sent to him
through the concerned DIT (Vigilance).

Four Directorates of Income Tax (Vigilance) assist him in the handling of

vigilance matters pertaining to their respective regional jurisdictions. The
designation, headquarters and jurisdiction of these four Directorates are as
under:

Designation Headquarters Jurisdiction

DIT (Vig.) North Delhi Delhi, NWR, Rajasthan, Kanpur and
Lucknow
DIT (Vig.) West Mumbai Mumbai, Maharashtra, Gujarat and
MP
DIT (Vig.) East Kolkata West Bengal, Orissa, NER, Bihar
DIT (Vig.) South Chennai Tamil Nadu, Karnataka, AP, Kerala

These Directorate process complaints against Group ‘B’ officers and also
conduct preliminary verifications and investigations in respect of both Group
‘A’ and Group ‘B’ officers.

Cadre controlling Chief Commissioners of Income Tax

After restructuring, the cadre controlling CCIT alone has vigilance section
under him. This is headed by an Addl. Jt. CIT level officers. This section

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assists the cadre controlling CCIT in the exercise of his vigilance functions,
which are as follows:

i. Processing of complaints: This section ensures that all the complaints

against officers and staff posted in the region are forwarded to by the
supervisory officers concerned. While complaints against Group ‘A’ and
Group ‘B’ Officers will be forwarded to the DIT (Vig.), the complaints
against NGOs will be processed by this section. Wherever considered
necessary, the preliminary verification/investigation will either be
conducted by some officer posted in the section or on request by DIT
(Vig.)/DGIT (Vig.) from an officer posted in the field.

ii. Vigilance Inspections: The Addl./JCIT (Vig.) and DCIT (Vig.) will
conduct Vigilance Inspection in 4 to 6 cases every year. These cases will
be selected in consultation with the DIT (Vig.). Cases of those Officers’
whose names are included in the “Agreed List” have to be taken up for
vigilance inspection.

iii. Disciplinary Proceedings: After getting the complaints against NGOs

investigated, this section will ensure that disciplinary proceedings
initiated in appropriate cases. The section will vet charge sheet before
this is issued by the disciplinary authority in finalising disciplinary
proceedings expeditiously. In cases where the officials have retired
during the pendency of such a proceeding, on conclusion of the
proceeding, it will send a report proposing a cut in pension to the
concerned DIT (Vig.) for obtaining orders of the President, as only he can
pass orders, withholding or withdrawing the pension.

iv. Action in respect of cases investigated by the CBI: This section will
keep a record of the cases where the CBI is conducting a preliminary
enquiry (PE) or has registered a regular case (RC) for investigation. On
receipt of the investigation report (also called SP’s report) this section
will ensure CBI’s report is processed expeditiously. Wherever the
competent authority is of the view that recommendations of the CBI are
not acceptable, a report will be sent to the DIT (Vig.) for consulting
CVC.

v. This section will also maintain all the three CVOs registers in respect of
non-Gazetted officials and will submit quarterly reports to the concerned
DIT (Vig.).

Disciplinary authorities and appellate authorities

According to the CCS(CCA) Rules the President may impose any of the
penalties specified in Rule 11. These penalties may also be imposed by the
Appointing Authority or by an authority specified in the schedule or
empowered in this behalf by a general or special order of the President.
Part-II of the schedule specifies that for Income-tax Services Group ‘B’, the
Commissioner of Income-tax/Director of Income-tax is the Appointing
Authority. He is, thus, the competent authority to impose of the penalties

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mentioned in Rule 11. The erstwhile Assistant Commissioner of Income-tax
(now designated as Additional/Joint CIT) can impose a penalty of censure.
Part-III of the schedule stipulates that for Group ‘C posts in a non-secretariat
office other than posts in respect of which a specific provision has been made
by general or special order of the President, the Head of Office will be the
Appointing Authority and will be competent to impose all the penalties. If
such Head of Office is subordinate to a Head of Department, such Head of
Department will be the Appellate Authority. If the Head of the Office is
himself the Head of Department or is not subordinate to any other Head of
Department, the Secretary in the Ministry or Department will be the Appellate
Authority.

Notification No.SR0612, dated 28.02.1957, issued by Ministry of Finance,

Department of Revenue, specifies various appointing authorities, viz.,
Authorities competent to impose a penalty and Appellate Authorities for
various posts in the Income Tax Department. This notification was last
amended, Vide notification, dated 5th October, 1988.

Rule 24 of the CCS(CCA) Rule provides that a Government servant may

prefer an appeal against all or any of the order specified in Rule 23.

The notification issued in this regard has prescribed the Appellate Authorities
for Group ‘C’ and Group ‘D’ employee. The President is the Appellate
Authority for Group ‘B’ officers, as in their case, the CIT/DIT is the
appointing authority as well as the Disciplinary Authority.

3. What is a vigilance angle

3.1 The Chief Vigilance Officers (CVOs) have been authorised to decide upon the
existence of a vigilance angle in a particular case, at the time of registration of
the complaint. Once a complaint has been registered as a vigilance case, it
will have to be treated as such till its conclusion, irrespective of the outcome
of the investigation. Although formulation of a precise definition is not
possible, generally such an angle could be perceptible in cases characterised
by:
i. commission of criminal offences like demand and acceptance of illegal
gratification, possession of disproportionate assets, forgery, cheating, abuse
of official position with a view to obtaining pecuniary advantage for self or
for any other person; or
ii. irregularities reflecting adversely on the integrity of the public servant; or
iii. lapses involving any of the following:
a. Gross negligence;
b. Recklessness;
c. Failure to report to competent authorities, exercise of
discretion/powers without or in excess of powers/jurisdiction;
d. Cause of undue loss or a concomitant gain to an individual or a set of
individuals/a party or parties; and
e. Flagrant violation of systems and procedures.

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4. Conduct Rules

4.1 The CCS(Conduct) Rule 3 provides that every Government servant shall at all
times—

i. Maintain absolute integrity;

ii. Maintain devotion to duty; and
iii. Do nothing which is un becoming of a Government Servant.

4.2 The Rule 3(2) provides that every Government servant holding a supervisory
post shall take all possible steps to ensure the integrity and devotion to duty of
all Government Servants for the time being under his control and authority.
Thus, proceedings against supervisory offices can also be initiated for not
ensuring integrity and devotion to duty by his subordinate.

4.3 The CCS(Conduct) Rules also specify as to how a Government Servant should
conduct himself. Any violation of these rules can be construed as misconduct
calling for initiation of disciplinary proceedings.

4.4 The CCS(CCA) Rules provide as to how the disciplinary proceedings are to be
conducted.

5. Processing of complaints

5.1 Action on complaints

5.1.1 Information about corruption, malpractices or misconduct on the part of public

servants may come to notice through various sources, such as:

i. Complaints received directly from the public or through the administrative

Ministry, CBI and CVC;
ii. Departmental inspection reports, audit objections, proposals u/s 263 of IT
Act and stock verification surveys;
iii. Scrutiny of property returns and the transactions reported by the concerned
employee under the CCS(Conduct) Rules;
iv. Reports of parliamentary committees, etc. Information received verbally
should be reduced to writing and dealt with similarly.
A complaint involving a Group ‘A’ Officer, alone or with others, received by
field formation may be forwarded to the DGIT(V)/CVO. Similarly, a
complaint involving a Group ‘B’ Officer, alone or with others, may be
forwarded to the concerned DIT(Vig.). Complaints against Group ‘C’ and
Group ‘D’ Officials may be forwarded to the Vigilance Section of the Cadre
Controlling CCIT. These authorities, in the first instance, would decide
whether the information involves a vigilance angle or not. If so, they would
register that as a complaint in the Vigilance Complaint Register and process
the matter further to decide whether the allegations are general or vague and
thus deserve to be filed. If the matter requires further investigation they would
also decide as to whether the investigation into the allegations should be
entrusted to the CBI or taken up departmentally. Every supervisory officer

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who receives a complaint against his subordinate is expected to give his
comments on the allegations as well as recommendations for further action
while forwarding the complaint to the appropriate authority through proper
channel. However, they should not start making enquiries, unless asked for by
the appropriate authority.
The cases of Group ‘A’ and ‘B’ Officers and NGOs may, with the approval of
the Chairman, CBDT, the CVO and the CCIT respectively, be entrusted to the
CBI, if the allegations:
i. are criminal in nature (e.g., charges involving bribery, corruption, forgery,
criminal breach of trust, possession of assets disproportionate to known
sources of income, cheating etc.,); or
ii. require inquiries to be made from non-official persons; or involve
examination of private records; or
iii. involve examination of private records; or
iv. need expert police investigation for arriving at a conclusion, or
v. need investigation abroad.
5.2 Investigation of complaints by Departmental Vigilance Agency
Anonymous/Pseudonymous complaints: The CVC under para 3(v) of the
DOPT Resolution No.371/20/99-AVD.III, dated 4th April, 1999, has ordered
that ordinarily no action should be taken on any anonymous or pseudonymous
complaints. They should in the normal course be filed. If however, an
enquiry is considered absolutely necessary, it should be carried out duly with
the prior approval of the CVC.
Other complaints: After it has been decided that the allegation contained in a
complaint should be looked departmentally, the concerned authority, i.e.,
DGIT (Vig.), DIT (Vig.) or the Vigilance Section of CCIT in respect of cases
of Group ‘A’, Group ‘B’ and NGOs respectively, should proceed to make a
preliminary enquiry investigation. The DGIT (Vig.) may conduct preliminary
enquiry himself or entrust it to one of the DsIT (Vig.). He may also suggest to
the CCIT to entrust the investigation to any other officer considered suitable
for the purpose in the particular circumstances. The purpose of such an
enquiry is to determine whether prima-facie there is some substance in the
allegations.
The preliminary enquiry may be made in several ways depending upon the
nature of allegations and the judgement of the investigating officer:
i. If the allegation contains information, which can be verified from
documents, files or other departmental records, the investigating officer
should, without loss of time, secure such records for personal inspection. If
any paper is found to contain evidence supporting the allegations, it should
be taken over by him for retention in his personal custody to guard against
the possibility of the available evidence being tampered with later on. If
the papers in question are required for any current action, it may be
considered whether the purpose would be served by substituting
authenticated copies of the relevant portions of the record, the originals
being retained by the investigating officer in his custody. If that is not

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feasible, the officer requiring the documents or papers in question for
current action should be made responsible for their safe custody after
retaining authenticated copies for the purpose of enquiry.
ii. In cases where the alleged facts are likely to be known to other employees
of the department, the investigating officer should interrogate them orally
or ask for their written statement. In case of oral interrogation a full record
of interrogation may be kept and the person interrogated may be asked to
sign as a token of his confirmation of his statement.
iii. Wherever necessary, important facts disclosed during oral interrogation or
in written statements should be sought to be corroborated.
iv. If it is necessary to make enquiries from the employees of any other
Government Department or Organisation or Bank, the investigating officer
should seek the assistance of the CVO/nodal authority concerned for
providing the necessary facilities.
During the course of preliminary enquiry, the concerned employee may as a
fundamental administrative requirement also be given an opportunity to tender
his version of the facts so as to find out if he has a plausible explanation.
There is, however, no question of making available to him any document at
this stage. Such an opportunity need not be given in cases in which a decision
to institute department proceedings is to be taken without any loss of time,
e.g., in cases in which the public servant is due to superannuate soon and it is
necessary to issue the charge-sheet to him before his retirement.
After the preliminary enquiry has been completed, the investigating officer
should prepare a self-contained report containing inter alia the material to
controvert the defence, and his own recommendations.
Where a case involves both criminal misconduct as well as flagrant violation
of systems and procedures of the organisation, further investigation into the
former should be left to the CBI. The Department concerned, however, may
simultaneously consider the latter and initiate appropriate disciplinary
proceedings, in accordance with the prescribed procedure, if required. The
CVO and the DIG concerned of the CBI should co-ordinate their efforts to
ensure that violation of rules, regulations and departmental norms which are
best covered under RDA are left to the disciplinary authority to deal with. The
CBI, on the other hand, should focus their investigation on the criminal aspect
of the case.

5.3 Investigation report

5.3.1 The Investigation Officer (IO) should indicate the allegations contained in the
complaint in the first paragraph of his report. The next paragraph should
contain the gist of the investigation carried out by him as well as documentary
and oral evidence that he has relied upon. The IO should then detail the
procedure and guidelines which the Suspected Public Servant (SPS) was
required to follow comply with. After reporting the SPS’s explanation, the
same along with evidence on record should be discussed and assessed by the
IO. Finally, he should give his findings in the last paragraph of the report
clearly bringing out the accountabilities of the officials. Relevant documents

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and statements of the witnesses and the SPS recorded during the investigations
should accompany the investigation report.

5.3.2 The report of the IO should thus be comprehensive and completely

documented so as to enable the CVO and DA to form an opinion whether any
disciplinary or any other action is called for or not.

5.3.3 The report in case of Group ‘A’ or Group ‘B’ Officer, if prepared by a field
officer, should be forwarded to the concerned DIT(Vig.). The DIT(Vig.)
should make his own evaluation of the actions of various officials with
reference to the nature of their duties. He should assess the gap between what
the official at different levels of the decision-making hierarchy actually did
and what they were required to do in accordance with
manuals/guidelines/circulars/instructions/orders, etc. He may follow the
following criteria for the purpose and highlight in his reports if the answer to
any of the following questions is in the affirmative:

a. Can malafides be inferred or presumed from the actions of any of the

concerned officials?
b. Could any of the officials be said to have engaged in a misconduct or
misdemeanour?
c. Was the conduct of any of the officials reflective of lack of integrity?
d. Did the official(s) act in excess of their delegated powers/jurisdiction and
failed to report the same to the competent authority?
e. Did they or any of them show any gross neglect of their official
functions?
f. Is there any material to indicate that any of them acted recklessly?
g. Has the impugned decision caused any undue loss to the organisation?
h. Has any person/party or a set of persons/parties either within the
organisation or outside it has been caused any undue benefit?
i. Have the norms or systems and procedures of the organisation been
flagrantly violated?

5.3.4 After analysing the Investigation Report, the DIT(V) will forward the same to
the DGIT(V) or concerned DA along with his recommendations for further
necessary action.
5.3.5 Such examination in cases of NGOs will be made by the Vigilance Section of
the CCIT.
5.4 Action on Investigation report
5.4.1 The DGIT(Vig.) or the disciplinary authority would consider the investigation
report and the recommendations of the DIT(V)/Vigilance Section of the CCIT
and decide, on the basis of the facts disclosed in the preliminary enquiry,
whether the complaint should be dropped or warning/caution, etc.,
administered or regular departmental proceedings launched. The test to be
applied at this juncture relates to whether a prima-facie case has been built up
on the basis of the evidence collected during the course of a preliminary
enquiry. Generally, if any of the criteria indicated above is satisfied, a
prima-facie case for instituting regular departmental proceedings could be said

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to exist. If, on the other hand, the evidence on record falls short of
establishing such a prima-facie case, the disciplinary authority may either
close the matter, or may take recourse to other forms of disapproval, such as
reprimanding the concerned employee, issuing him an advisory memo or
warning, or communicating the Government’s displeasure, etc., as per the
rules. While taking such a decision, the disciplinary authority should bear in
mind that a departmental proceeding is not a criminal trial, and that the
standard of proof required is based on the principle of ‘preponderance of
probabilities’ rather than ‘proof beyond reasonable doubt’.
5.4.2 In the case of Group ‘A’ and Group ’B’ Officers the Commission’s advice
would be required and any decision of the disciplinary authority at this
juncture may be treated as “tentative”. Such a reference would be required to
be made even in respect of an officer/staff who are not within the
Commission’s jurisdiction if they are involved along with other officers who
are within the jurisdiction of the Commission, as the case would then become
composite and fall within the Commission’s jurisdiction. The matter is to be
referred to the Commission, through the CVO, for its advice. However, if an
administrative authority investigates into an anonymous or pseudonymous
complaint under the impression that it is a genuine signed complaint, or for
any other reason, the Commission need not be consulted, if it is found that the
allegations are without any substance. Further, action in the matter should be
taken on receipt of the Commission’s advice, wherever the same has been
sought. Certain types of vigilance cases where it is desirable to initiate major
penalty proceedings have been mentioned below—
i. Cases in which there is a reasonable ground to believe that a penal offence
has been committed by a Government Servant but the evidence
forthcoming is not sufficient for prosecution in a Court of law.
ii. Falsification of Government records.
iii. Cases involving any substantive lapse such as gross or wilful negligence,
recklessness, exercise of discretion without or in excess of
power/jurisdiction, causing undue loss to the organization or a concomitant
gain to an individual and flagrant violation of systems and procedures.
iv. Misuse of official position or power for personal gain.
v. Disclosure of secret or confidential information even though it does not
fall strictly within the scope of Official Secrets Act.
vi. False claims on the Government like TA claims, reimbursement claims,
etc.

5.4.3 Besides, lapses/irregularities would specifically depend upon the functions

which the official was performing at the relevant time and the particular
Section/Wing where he was working. However, misconduct, lack of devotion
to duty or integrity, as the case may be, could be inferred illustratively in the
following circumstances where the employee concerned:

a. has not acted in accordance with rules and his recommendations are not in
the public interest; or
b. has conducted himself in such a manner that his decisions or
recommendations do not appear objective and transparent and seem to be
calculated to promote improper gains for himself or for any one else; or

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c. acted in a manner to frustrate or undermine the policies of the organisation
or decisions taken in the public interest by the department; or
d. seems to have complied with unauthorised and unlawful oral instructions
of his seniors without bringing them to the notice of the Head of the
department.
e. has exceeded his discretionary powers and his actions do not appear
justifiable or to serve any organisational interests; or
f. has abused or misused his official position to obtain benefit for himself or
for another; or
g. has not reflected intellectual honesty in his decisions and
recommendations.

5.4.4 Both, court decisions as well as administrative instructions, have emphasised

there should not be an inordinate delay between the occurrence of the
impugned events and the issue of the charge sheet. The current instructions of
the Government are that the preliminary inquiry should be completed within
three months.

6. Reference to CVC and reconsideration of its advice

6.1 Before a final decision to initiate disciplinary proceedings in respect of any

Gazetted officer is taken, it is necessary that the case is referred to the CVC
for advice through the concerned DIT(Vig.). In case the advice of the CVC is
not found acceptable by the Disciplinary Authority, the matter is required to
be referred back to the CVC for reconsideration of its advice.

6.2 There is an impression that reconsideration of Commission’s advice is to be

sought only if the Department proposes to take a more “lenient view” of the
case than that recommended by the CVC. It is felt that if the Department
proposes to take a severe action than recommended by the CVC, consultation
with Commission is not necessary. This is not true. In either case, regardless
of whether the disciplinary authority proposes to take a more lenient or stricter
view of the matter or a substantive criminal offence such as bribery, cheating,
criminal breach of trust, conspiracy, forgery, etc., consultation with CVC is
necessary. However, the reference for such reconsideration of the
Commission’s advice should be made only once.

7. Interaction with CBI

7.1 Preparation of Agreed List: Every year the Cadre Controlling Chief
Commissioners of Income-tax are required to hold a co-ordination meeting
with the CBI with regard to their regions. They could delegate this function to
one of their CITs also. The purpose of such a meeting is to draw an agreed list
of Gazetted officers whose activities are to be watched during the year. These
lists are prepared on the basis of information available both with the
Department and with the CBI. While the names of Group ‘B’ Officers are to
be included with the concurrence of DGIT(Vig.)/CVO, the names of
Group ‘A’ Officers are to be included with the approval of the Board. The
concerned CCITs or CITs are required to prepare a tentative list on the basis of
meetings held with CBI and forward the same to DGIT(Vig.) for finalisation.

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7.2 Assistance in other enquiry

7.2.1 Full co-operation and facilities should be extended to the CBI by all
administrative authorities during the course of investigation of cases by them.
The Inspector General, CBI and his staff are authorised to inspect all
categories of Official’s records at all stages of investigation. The Head of the
Department/Offices, etc., will ensure that during investigation, whether
preliminary or regular, the SP, CBI or his authorised representatives are given
full co-operation and facilities to see all relevant records. Even before
registration of a PE or RC, if the CBI wishes to check the veracity of
information in their possession from the Official’s records, they may be
allowed to see the records on receipt of a request from the SP, CBI.

7.2.2 The records required by the CBI should be made available to them ordinarily
within a fortnight and positively within a month from the date of receipt of the
request. If for any special reason, it is not possible to hand over the record
within a month, the matter should be brought by the authority in possession of
the records to the notice of the SP concerned pointing out the reasons as to
why it is not possible for them to make available the records within the period
specified. The matter should also be brought to the notice of the Chief
Vigilance Officer of the Department for such further direction as he might like
to give. The CBI should invariably be informed of the dates of superannuation
of the accused officer immediately after receipt of the copy of the FIR, if he is
due to retire within a year or so of the registration of the case.

8. Investigation by the CBI

8.1 Whenever a case is taken up for preliminary enquiry or a regular case is

registered, the administrative authorities are informed. Cases of Group ‘A’
Officers are to be dealt by the DGIT(Vig.) and those of Group ‘B’ Officers
and NGOs by the concerned DIT(Vig.) and the Vigilance Section of the CCIT
respectively. The copies of Reports/FIR, etc., received from the CBI should
be forwarded to the concerned authority who will open a file to monitor the
progress and include these cases in the CVO’s Register. The investigation
reports as and when received will also be dealt with from these files by the
concerned authority.

8.2 Unless there are any special reasons to the contrary, cases which are to be
investigated by the Central Bureau of Investigation should be handed over to
them at the earliest. Apart from other considerations, it is particularly
desirable to do so as to safeguard against the possibility of the suspect public
servant tampering with or destroying incriminating evidence against him. No
review should ordinarily be made of a case, once it has been registered by the
CBI. If, however, there are special grounds for the review of a case, the CBI
should invariably be associated with it. If any meeting is to be held in the
Department where a case under investigation by the CBI is to be
discussed/reviewed, a representative of the CBI should always be invited.

8.3 In cases of which the information available appears to be authentic and

definite so as to make out a clear cognisable offence or otherwise seems to

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have substance in it, the CBI may register a regular case (RC) straightaway
under Section 154 of the Criminal Procedure Code.

8.4 On the other hand, if such information appears to require verification before
formal investigation is taken up, a preliminary enquiry (PE) is first made. As
soon as the preliminary enquiry reveals that there is substance in the
allegation, a regular case may be registered for formal investigation.

8.5 As soon as a case is taken up for preliminary enquiry (PE) or a regular case
(RC) is registered under Section 154, Criminal Procedure Code, a copy of the
PE Registration Report/FIR will be sent by the CBI confidentially to the Head
of the Department and/or administrative Ministry concerned and the Chief
Vigilance Officer of the Ministry.

8.6 In respect of the cases involving Group ‘A’ and Group ‘B’ Officers a copy of
the PE/FIR will also be sent to the Secretary, Central Vigilance Commission.

8.7 The CBI will take into confidence the Head of the department or office
concerned before taking up any enquiry (PE or RC) or as soon as possible
thereafter according to the circumstances of each case. This will also apply in
case a search of the premises of an officer is required to be made.

8.8 If on completion of investigation, the CBI comes to the conclusion that

sufficient evidence is forthcoming for launching criminal prosecution, then the
final report of investigation in such cases shall be forwarded to the Central
Vigilance Commission if sanction to prosecution is required under any law to
be issued in the name of the President. In other cases the report will be
accompanied by the draft sanction order in the prescribed form, and will give
the rank and designation of the authority competent to dismiss the delinquent
officer from service and the law or rules under which the authority is
competent to do so.

8.9 In other cases in which evidence available is not sufficient for launching
criminal prosecution, the CBI may come to the conclusion that:

i. The allegations are of a nature serious enough to justify regular

departmental action being taken against the public servant concerned. The
final report in such cases will be accompanied by (a) Draft articles of
charge prepared in the prescribed form, (b) A statement of imputations in
support of each charge, and (c) Lists of documents and witnesses relied
upon to prove such charges and imputations; or
ii. While sufficient proof is not available to justify prosecution or regular
departmental action, there is a reasonable suspicion about the honesty or
integrity of the Government Servant concerned, the final report in such
cases will seek to bring to the notice of the disciplinary authority the nature
of the irregularity or negligence for such administrative action as may be
considered feasible or appropriate.

8.10 Reports of both types mentioned in paragraph 8.9 which pertain to gazetted
officers and other Category ‘A’ Officers will be forwarded by the CBI to the

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Central Vigilance Commission who will advise the disciplinary authority
concerned regarding the course of further action to be taken. A copy of the
report will be sent to the Ministry/Department/Office concerned also. The
CBI report may also mention the date when the first information was lodged
or preliminary enquiry was registered, as this may help in a proper assessment
of the documentary evidence produced during the enquiry.

8.11 Investigation Reports pertaining to non-Gazetted officers will be forwarded by

the CBI direct to the disciplinary authority concerned. In such cases, no
further departmental fact-finding enquiry should normally be necessary.
However, if there are any points on which the disciplinary authority may
desire to have additional information or clarification, the CBI may be
requested to furnish the required information/clarification, if necessary, by
making a further investigation.

8.12 Investigation in certain cases may reveal that sufficient evidence is available
justifying prosecution as well as departmental action. In such cases, the
current thinking favours launching both actions simultaneously. Violations of
rules, regulations and norms are best dealt with through RDA, while offences
committed with mens rea are covered by criminal prosecution. Whenever
there is an unresolved difference of opinion between the CBI and the
administrative authority concerned on this issue, in the first instance, the
matter should be referred to the Central Vigilance Commission for advice.

8.13 There is no legal bar to the initiation of disciplinary action under the rules
applicable to the delinquent public servant where criminal prosecution is
already pending, and generally there should be no apprehension of the
outcome of the one affecting the other, because the ingredients of
misconduct/delinquency in criminal prosecution and departmental proceedings
as well as the quantum of proof required in both cases are not identical. In
criminal cases, the proof required for conviction has to be beyond reasonable
doubt, whereas in departmental proceedings proof based on preponderance of
probability is sufficient for holding the charges to have been proved. What
might however affect the outcome of the subsequent proceedings may be the
contradictions which the witnesses may make in their depositions in the said
proceedings. It would, therefore, be necessary that all relevant matters be
considered in each individual case while taking a decision on whether or not to
start simultaneous departmental action.

9. Action on investigation reports received from CBI

9.1 On completion of their investigation, the CBI forwards a copy of each of the
SP’s report to the concerned DA and the CVO for further action. A copy of
the SP’s report is also endorsed to the Commission in cases in which the
Commission’s advice is necessary.

9.2 Procedure for sanction for prosecution

9.2.1 The CBI generally recommends prosecution in cases of bribery, corruption or

other criminal misconduct, it also considers making a similar recommendation

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in cases involving a substantial loss to the Government or a public body. The
Commission’s advice for prosecution, however, is required only in cases of
Presidential appointees, i.e., Group ‘A’ Officers. In such cases, the
DGIT(Vig.)/CVO is to furnish the Department’s comments within a month of
the receipt of the CBI report by the competent authority. In other cases, the
competent authorities are to take their own decision as to whether sanction for
prosecution should be granted or not. As directed by the Supreme Court, this
matter should be processed expeditiously so as to ensure that the required
sanction is issued within a period of three months of the receipt of the report.
In case of difference of opinion between the CBI and the competent authority,
the matter may be referred to the Commission for its advice, irrespective of the
level of the official involved. Such references are to be made through the
concerned DIT(Vig.).

9.3 Procedure for initiation of regular departmental action

9.3.1 In cases, where the CBI recommends RDA for major/minor penalty action or
‘such action as deemed fit’ against the officials, the Commission is to be
consulted. The CVO is to ensure that the comments of the Department on the
CBI report are furnished to the Commission within one month of the receipt of
the CBI’s investigation report, failing which the CVC will proceed to examine
the case and tender advice. While reports in cases of Group ‘A’ Officers will
be processed by the DGIT(Vig.), such reports in cases of Group ‘B’ Officers
will be processed by the DGIT(Vig.), such reports in cases of Group ‘B’
Officers will be processed by the DIT(Vig.), who will obtain the comments of
the Disciplinary Authority before submitting the matter to the DGIT(Vig.) for
reference to the CVC. Further, action in such cases may be taken as per the
Commission’s advice. In other cases, the DA should take expeditious action
to ensure that charge sheets, if necessary, are issued within two months of the
receipt of the investigation report from the CBI. It would not be necessary for
the CBI to follow up the matter in such cases after the disciplinary authority
has initiated action for RDS against the concerned officials in accordance with
their recommendations. However, in case of difference of opinion between
the CBI and administrative authorities, the matter would be referred to the
Commission for advice, irrespective of the level of the official involved. The
organisation would take further action in accordance therewith.

9.3.2 The law of the land permits prosecution as well as RDA to proceed
simultaneously (Jang Bahadur Singh V/s. Baijnath Tewari, 1969 SCR, 134).

9.3.3 Where the suspect officer is primarily accountable for conduct which
legitimately lends itself to both criminal prosecution in a court of law as well
as RDA, as a general rule, both should be launched simultaneously after
consultation with the CBI or other investigating agencies charged with
conducting the prosecution. Such simultaneous conduct of RDA and criminal
prosecution should be resorted to especially if the prosecution case is not
likely to be adversely affected by the simultaneous conduct of RDA. Keeping
RDA in abeyance should be an exception rather than rule. Copies of all the
relevant documents authenticated by the competent authority may be retained,
for the purpose of RDA, before the original documents are sent to the Court.

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If the documents have already been sent to a Court of Law for the purpose of
criminal proceedings, certified copies may be procured for the purpose of
RDA. Care, however, should be taken to draft the charge sheet for the
purpose of RDA in such a manner that it makes the suspect official
accountable for violation of various provisions of CCS(Conduct) Rules
without reference to criminal misconduct.

10. Major penalty proceedings

10.1 Certain important matters connected with the initiation and conduct of major
penalty proceedings are discussed below.

10.2 Initiation of proceedings/issue of charge sheet

10.2.1 Once the disciplinary authority decides to initiate major penalty proceedings
against an employee, on the basis of the Commission’s advice or otherwise, it
should take immediate steps to issue the charge-sheet. The charge-sheet
should be drafted with utmost accuracy and precision based on the facts
gathered during the investigation (or otherwise) of the misconduct involved. It
should be ensured that no relevant material and witnesses are left out and at
the same time, no irrelevant material or witnesses are included.

10.2.2 The charge-sheet comprises of the memorandum, informing the concerned

employees about initiation of proceedings against him and giving him an
opportunity to admit or deny the charges within a period not exceeding 15
days. The memorandum is to be signed by the disciplinary authority himself.
In case, the disciplinary authority is the President or an Officer who is
authorised to authenticate the orders on behalf of the President, may sign the
memorandum. The Memorandum should be supported by annexures, namely,
(i) article(s) of charge, (ii) statement of imputations of misconduct or
misbehaviour in support of each article of charge, (iii) list of documents and
(iv) list of witnesses.
10.2.3 All the relevant details supporting the charges should be separately indicated
in the statement of imputations.

10.3 Examination of written statement of defence

10.3.1 If the charged employee admits all the charges unconditionally, the
disciplinary authority shall record its finding on each charge. Where the
advice of the Commission is required, the case may be referred to the
Commission, along with the comments of the disciplinary authority, for
second stage advice. In other cases, the disciplinary authority, should proceed
to pass a self-contained and reasoned speaking order of punishment, defining
the scope of punishment to be imposed in clear terms, in accordance with the
relevant rules.

10.3.2 The disciplinary authority has the inherent power to review and modify the
articles of the charge, or drop some or all of the charges, after the receipt and
examination of the written statement of defence. It is not bound to appoint an
inquiring authority to inquire into such charges as are not admitted by the

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charged employee but about which the disciplinary authority is satisfied that
these do not require to be proceeded with further. The Commission should
also be consulted where the disciplinary proceedings were initiated on its
advice.

10.3.3 If the disciplinary authority finds that any or all the charges have not been
admitted by the charged employee, or if he has not submitted the written
statement of defence by the specified date, it may cause an inquiry to be made
to inquire into the charges framed against the charged employee.

10.4 Appointment of inquiry officer and presenting officer

10.4.1 Under the disciplinary rules, the disciplinary authority may itself inquire, or
appoint an inquiring authority/officer (IO) to inquire into such charges against
the charged officer (CO) if the latter does not admit the same or has otherwise
not submitted his defence statement within the specified time. It should,
however, be ensured that the officer so appointed has no bias and had no
occasion to express an opinion at any stage of the preliminary inquiry. The
inquiring authority should also be directed to ensure submission of the report
mandatorily within a period of six months of his appointment.

10.4.2 Generally, the Commission nominates one of the Commissioners for

Departmental Inquiries (CDI), borne on its strength, for appointment as
inquiring authority to inquire into the charges against such employees against
whom it advises initiation of major penalty proceedings. However, because of
its limited manpower resources, the Commission cannot nominate a CDI in
each and every case in which it tenders advice. It, therefore, permits the
appointment of a departmental inquiring authority in certain cases.

10.4.3 The disciplinary authority would also appoint an officer, called Presenting
Officer (PO), to present the case on its behalf before the inquiring authority.
Unlike in the past, it would not be necessary to nominate a CBI officer to act
as PO in the cases investigated by them. The disciplinary authority will ensure
that the Inquiry Officer and Presenting Officer are appointed simultaneously
after the service of the charge-sheet on denial of charges by the Charged
Officer.

10.5 Defence assistance

10.5.1 The charged employee has also a right to take assistance of a public servant,
generally termed as Defence Assistant (DA) to help him in the presentation of
his case in a departmental inquiry. The CO may not engage a legal
practitioner to present the case on its behalf before the IO, unless the PO
appointed by the disciplinary authority is also a legal practitioner, or the
disciplinary authority, having regard to the circumstances of the case, so
permits. However, if the case is being presented, on behalf of the disciplinary
authority, by a “Prosecuting Officer” of the CBI or by the Law Officer of the
Department, such as a Legal Adviser, etc., there would evidently be good and
sufficient circumstances for the disciplinary authority to exercise his discretion
in favour of the delinquent employee and allow him to be represented by a

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legal practitioner. Any exercise of discretion to the contrary in such cases is
likely to be held by the court as arbitrary and prejudicial to the defence of the
delinquent employee.

10.6 Oral inquiry

10.6.1 The Inquiry Officer should, in all cases, submit the report to the disciplinary
authority, with extra copies, one each for the CO and the CBI, if the case had
been investigated/presented by them. However, in cases in which a CDI of the
Commission conducts the inquiry, he would also submit a copy of the report
along with one copy each of the depositions and Daily Order Sheets to the
Secretary of the Commission.

10.6.2 Along with the report, the Inquiry Officer should send to the disciplinary
authority a folder containing the following:

a. List of exhibits produced by the Presenting Officer.

b. List of exhibits produced by the Charged Officer.
c. List of prosecution witnesses.
d. List of defence witnesses.
e. A folder containing daily order-sheets.
g. A folder containing the written statement of defence.
h. Written briefs of both sides.
i. Correspondence Folders.

10.6.3 The IO must complete the inquiry proceedings and submit his report within a
period of six months from the date of his appointment.

10.7 Examination of Inquiry Officer’s report

10.7.1 The IO’s report is intended to assist the disciplinary authority in coming to a
conclusion about the guilt of the CO. The disciplinary authority with the
inherent powers to disagree with the findings of the IO and come to his own
conclusions on the basis of his own assessment of the evidence forming part of
the inquiry. He may remit the case for further inquiry if he considers that
there are grave lacunae or procedural defects which vitiate the inquiry or if
some important witnesses were not examined. (K.R. Deb Vs. Collector of
Central Excise, AIR 1971 SC 1447). The fact that the inquiry has gone in
favour of the CO or the evidence led in the inquiry has gaps, should not be a
reason for remitting the case for further inquiry (Dwarka Chand Vs. State of
Rajasthan – AIR 1959 Raj. 38). In such a case, the disciplinary authority may
disagree with the IO’s findings.

10.8 Second stage of advice of the CVC

10.8.1 In respect of Group ‘A’ and Group ‘B’ cases the disciplinary authority will
take a tentative decision regarding acceptance of the Inquiry Officer’s Report
after examining the same. Thereafter the matter will be referred to the CVC
for its second stage advice. In respect of Group ‘A’ Officers the reference to
CVC will be made by the CVO directly while in the case of Group ‘B’

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Officers the concerned DIT(Vig.) will obtain the tentative decision of the
disciplinary authority and thereafter forward the relevant papers to the
DGIT(Vig.) for making a reference to the CVC.

10.9 Furnishing a copy of IO’s report, along with reasons of disagreement, if

any, to the charged officer for his comments.

10.9.1 In view of the Supreme Court’s judgement in Ramzan Khan’s case, if the
disciplinary authority is different from the inquiring authority, and if the latter
has held all or any of the charges against the CO as proved, the disciplinary
authority should ask the CO for his representation, if any, within 15 days. In
case the IO has held any or all the charges against the CO as “not proved”, and
the disciplinary authority disagrees with the IO’s findings, he should
communicate the reasons for his disagreement to the CO while asking for his
representation. The disciplinary authority may take further action on the
inquiry report on consideration of the CO’s representation or on the failure of
the CO to submit the same within the specified time. The second stage advice
of the CVC is also to be forwarded to the CO for his representations, if any.

10.10 Tentative decision of the disciplinary authority

10.10.1 After taking into consideration the CO’s representation the disciplinary
authority will take a decision on whether to punish him or not. In cases
where consultation with UPSC is necessary, the decision so taken will be
tentative. While actually imposing a punishment, the disciplinary authority
should ensure that the same is commensurate with the gravity of the proven
misconduct. He may also take into account at this stage the following other
criteria:

a. the extenuating circumstances, as they emerge from the inquiry; and

b. the track record of the charged officer.
c. the quantum of loss, suffered by the organisation or the concomitant
benefit conferred on the individual party.

It should also be ensured that the punishment so imposed is not academic or

ineffective. For example, there is no point in imposing a penalty of
withholding of an increment, if the CO has already been drawing pay at the
maximum of the pay scale. Similarly, there is no point in imposing a
penalty of withholding of promotion for a specified period if he/she is not
due for promotion.

10.10.2 In cases where a Group ‘B’ or Group ‘C’ Officer has retired during the
pendency of disciplinary proceedings, the disciplinary authority is required
to send a report to the President where a penalty of cut in pension is
required to be levied. Such references will be made to the DGIT(Vig.)
through the concerned DIT(Vig.).

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10.11 Consultation with UPSC

10.11.1 In cases of Group ‘A’ Officers as well as retired officers of any grade,
where a penalty under CCS(Pension) Rules is to be levied, reference to
UPSC is mandatory. While making such proposals all the original
documents along with the tentative decision of the disciplinary authority is
required to be forwarded to UPSC. These references are to be made in a
prescribed proforma which has to be signed by the Joint Secretary (Admn.)
in the CBDT. Such references for the time being are being processed in the
Directorate General of Income-tax(Vig.). The necessary details such as
service particulars and ACR Dossiers of the Officers are to be provided by
the concerned Chief Commissioners.

10.12. Final decision of the disciplinary authority and issue of penalty order

10.12.1 After the receipt of the UPSC’s advice the matter is to be processed in the
Directorate General of Income-tax(Vig.). In the cases where the advice of
the UPSC is not found acceptable, the matter is required to be referred back
to that body for reconsideration. In cases where even the reconsidered
advice of the UPSC is not acceptable or the advice of UPSC is not in
agreement with the advice of the CVC, a reference is required to be made to
the DOPT for resolving the matter. Such references are to be made with the
approval of the Finance Minister. In cases where the advice of the UPSC is
acceptable the matter is required to be put up to the disciplinary authority
(i.e., the President) for taking a final decision on the quantum of punishment
or exoneration, as the case may be. In cases where advice of UPSC is not
acceptable the matter is again required to be put to the disciplinary authority
(i.e., the President) for final decision after taking into account the views of
the DOPT.

10.12.2 In cases relating to Group ‘B’ Officers and NGOs, where consultation with
UPSC is not required, the disciplinary authority, in exercise of his quasi-
judicial powers, may issue an order imposing a major or a minor penalty on
the CO, or exonerate him of the charges, if in his opinion, none of the
charges has been proved or what has been proved, is non-actionable. The
final order passed by the disciplinary authority should be a well-reasoned
speaking order.

11. Minor penalty proceedings

11.1 The procedure for imposing a minor penalty is much simpler than that for
imposing a major penalty. For the imposition of the former, the disciplinary
authority is only required to serve a Memorandum on the concerned employee,
enclosing therewith a statement of imputations of misconduct or misbehaviour
and asking for a reply within a specified period, generally 10 days. On receipt
of the written statement of defence, if the disciplinary authority is satisfied that
the misconduct imputed to the CO has not been established, he may, through a
written order, drop the charges. On the other hand, if the disciplinary
authority considers the CO guilty of the misconduct in question, he may
impose one of the minor penalties. The disciplinary authority in his discretion,

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may also decide to conduct an inquiry following the same procedure as
stipulated for the imposition of a major penalty, if in his opinion, holding an
inquiry is necessary to come to a definite conclusion about the guilt or
innocence of the CO or if the employee requests for the same and such request
is considered reasonable. Where the lapse is minor or procedural in nature and
has not resulted in damage or loss to the organisation or any benefit to an
individual/party, minor penalty proceedings may suffice.

11.2 In cases, where minor penalty proceedings were instituted against an

employee on the advice of the Commission, the Commission need not be
consulted at the second stage if the disciplinary authority, after considering the
representation of the charged officer, proposes only to impose the same. But
in cases where the disciplinary authority proposes to drop the charges, or an
inquiry has been conducted, second stage consultation with the Commission is
necessary.

11.3 The rest of the procedure for levy of minor penalty, viz., consultation with the
UPSC, issue of the final penalty order, etc., is same as in the case of major
penalty proceedings.

12. The following tables give the schedules of time limit for conducting
investigation and departmental inquiries:

12.1 Schedule of time-limits for conducting investigations and departmental

inquiries:
12.2
Sl.
Item Time Limit
No.
1. Decision as to whether the One month from the date of
complaint involves a vigilance receipt of the complaint.
angle
2. Decision on complaint, whether to One month from the date of
be filed or to be entrusted to CBI receipt of the complaint.
or to be taken up for investigation
by departmental agency or to be
sent to the concerned
administrative authority for
necessary action.
3. Conducting investigation and Three months.
submission of report
4. Department’s comments on the One month from the date of
CBI reports in cases requiring receipt of CBI’s report by the DA.
Commission’s advice
5. Referring departmental One month from the date of
investigation reports to the receipt of investigation report
Commission for advice
6. Reconsideration of the One month from the date of
Commission’s advice, if required receipt of Commission’s advice.

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7. Issue of charge sheet, if required (i) One month from the date of
receipt of Commission’s
advice.
(ii) Two months from the date of
receipt of investigation report.
8. Time for submission of defence Ordinarily ten (10) days.
statement
9. Consideration of defence 15 (Fifteen) days.
statement
10. Issue of final orders in minor Two months from the receipt of
penalty cases defence statement
11. Appointment of IO/PO in major Immediately after receipt and
penalty cases consideration of defence
statements.
12. Conducting departmental inquiry Six months from the date of
and submission report appointment of IO/PO
13. Sending a copy of the IO’s report (i) Within 15 days of receipt of
to the CO for his representation IO’s report, if any, of the
Articles of Charge has been
held as proved.
(ii) 15 days if all charges held as
not proved. Reasons for
disagreement with IO’s
findings to be communicated.
14. Consideration of IO’s One month from the date of
representation and forwarding receipt of representation.
IO’s report to the Commission for
second stage advice
15. Issuance of orders on the Inquiry (i) One month from the date of
report Commission advice
(ii) Two months from the date of
receipt of IO’s report if
Commission’s advice was not
required.

12.3 However, if the misconduct is very serious or fraudulent in nature and may
also result in the prosecution of the officer concerned, some of the time limits
indicated above would need to be modified. This would obviously be to
ensure that the departmental inquiry is completed expeditiously within four
months of its institution:
12.4
Sl.
Item Time Limit
No.
1. Issue of charge sheet 15 days from the date of the
Commission’s advice or one
month from the date of receipt of
Investigation report.
2. Time for submission of Defence Ten Days
Statement

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3. Consideration of defence One week
statement
4. Appointment of IO/PO in major Immediately after receipt of
penalty cases consideration of defence
statement.
5. Conduct of departmental inquiry Two months from the date of
and submission of report appointment of IO/PO
6. Sending of a Copy of the IO’s (i) Within one week of receipt of
report to the CO for his IO’s report if any article of
representation charge has been held as
‘Proved’
(ii) 15 days if the charges are held
as ‘Not proved’ (Reasons for
disagreement of IO’s findings
to be communicated)
7. Consideration of CO’s 15 days from the date of receipt of
representation and forwarding representation
IO’s report to the Commission for
forwarding second – stage advice
8. Issuance of orders on inquiry Within one month from the date of
report receipt of IO’s report

13. Appeal, revision and review

13.1 A Government Servant including a person who has ceased to be in

Government service, may make an appeal against the order of the disciplinary
authority, in case he is not satisfied with the decision of that authority. The
appellate authorities are specified under the rules. Where no such authority is
specified, such as in the case of Group ‘B’ Officers, the appeal shall lie to the
appointing authority, if the order appealed against is made by an authority
subordinate to it. It will lie to the President where such order is made by any
other authority. An appeal from a Group ‘C’ or Group ‘D’ official will lie to
the authority to which the authority making the order appealed against is
immediately subordinate.

13.2 If, after the appellate authority has decided the matter the Government Servant
is still aggrieved, he may seek redressal through the revising authority. The
power of revision is vested with the President, the Head of the Department, the
relevant appellate authority or any other authority specified in this behalf. No
time-limit has been prescribed for revision, except in the case of the appellate
authority, where the revised order has to be passed within six months of the
date of the order proposed to be revised. This power can be invoked
regardless of whether an appeal/revision petition has been submitted to such
authority or not. No proceedings for revision should be commenced until after
the expiry of the period of limitation of appeal or, the disposal of the appeal,
where any such appeal has been preferred. An application for revision should
be dealt with in the same manner as if it were an appeal under the Rules.

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13.3 The President has power to review any order passed earlier, including an order
passed in revision, when any new fact or material which has the effect of
changing the nature of the case, comes to his notice.

13.4 If in appeal, revision or review, the appellate/revising/reviewing authority

proposes to modify the original order of punishment, the Commission’s advice
would not be necessary where such modification remains within the
parameters of the Central Vigilance Commission’s original advice. For
example, if on the Commission’s advice for imposition of a major penalty, the
appellate, or reviewing authority proposes to modify the original penalty
imposing such a penalty with another major penalty, the Commission’s advice
at the appeal/review stage would not be necessary. On the other hand, in the
instant case, if the modified penalty is not a major penalty, the Commission’s
advice would be necessary.

13.5 Where the Commission has not advised a specific penalty, the CVO shall
scrutinise the final orders passed by the disciplinary authority and ascertain
whether the penalty is commensurate with the nature and gravity of the lapses.
If the punishment imposed is inadequate or inappropriate, he may recommend
a modification thereof to the reviewing authority. On satisfying himself that a
case for review exists, the latter may thereafter, assume jurisdiction over the
case as provided for under the rules.

14. SUSPENSION

14.1 Provision under CCS(CCA) Rules

14.1.1 Suspension has been described as state of being temporarily debarred from a
function or privilege, temporary deprivation of one’s office/position. It is an
executive action whereby a Government Servant is prevented from exercising
the powers and discharging the duties of his office temporarily, pending final
action being taken against him for acts of grave indiscipline, delinquency,
misdemeanour, etc.

When a Government servant may be suspended

14.1.2 A Government Servant may be placed under suspension under Rule 10(1) of
the CCS(CCA) Rules when:

a. disciplinary proceedings are contemplated or pending against him; or

b. he is involved in a case in which a criminal offence is under
investigation, inquiry or trial; or
c. in the opinion of the Competent Authority, he is engaged in activities
prejudicial to the interests of the security of the state.

14.1.3 Suspension can be resorted to when, following a preliminary enquiry the

Competent Authority is satisfied that a prima facie case has been made out for
departmental proceedings. Framing of charges is not a condition precedent.

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14.1.4 If proceedings have been initiated on a criminal charge but the Government
Servant has not actually been detained in custody (he may have been released
on bail), he may still be placed under suspension especially if the charge is
connected with his official position or involves moral turpitude.

14.1.5 Public interest should be the guiding factor in deciding whether or not a
Government servant should be placed under suspension. If he is alleged to
have indulged in acts of gross delinquency, moral turpitude, corruption,
misuse of official powers, grave dereliction of duty, etc., and public interest
will not be served by not suspending him.

14.1.6 However, utmost caution should be exercised while placing a Government

Servant under suspension. The power should be exercised sparingly, for valid
reasons only and not out of extraneous considerations. The possibility of
transferring the Government Servant or sending him on leave may also be
explored.

14.1.7 Guiding principles: Specifically, the Government Servant may be placed

under suspension in the following circumstances:

i. Where his continuance in office will prejudice investigation, trial or any

enquiry (e.g., apprehended tampering with witnesses or documents);
ii. Where his continuance in office is likely to seriously subvert discipline in
the Office in which he is working;
iii. Where his continuance in office will be against the wider public interest,
e.g., If there is a public scandal and it is considered necessary to place the
Government servant under suspension to demonstrate the policy of the
Government to deal with officers involved in such scandals, particularly
corruption.
iv. Where a preliminary enquiry reveals a prima facie case justifying criminal
or departmental proceedings, which are likely to lead to his conviction
and/or dismissal, removal or compulsory retirement from service; and
v. Where he is suspected to have engaged himself in activities prejudicial to
the interest of the security of the State.

14.1.8 Effect: Suspension is not a penalty but constitutes hardship for the
Government Servant who is paid at reduced rates. It is also considered to be a
stigma even if minor penalty is imposed and the Government Servant is
reinstated. There is no reduction in rank and the Government Servant retains a
lien on his permanent post. Article 311 of the Constitution is not applicable to
an order of suspension. During the period of suspension the Government
Servant continues to be subject to the same discipline and penalties and the
Conduct Rules continues to apply to him. He cannot supplement his
subsistence allowance by engaging in any other employment, business, etc.

14.1.9 Competent authority: Under Rule 10(1) of the CCS(CCA) Rules only the
following authorities are competent to place a Government Servant under
suspension:
a. The Appointing authority as defined in rule 2(a) of the CCS(CCA)
Rules.

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b. Any Authority to which the Appointing Authority is subordinate.
c. The Disciplinary Authority, i.e., the authority competent to impose any
of the penalties mentioned in Rule 11 of the CCS(CCA) Rules.
d. Any other authority empowered in that behalf by the President by
General or special order.

14.1.10 If an order of suspension is made by an authority lower than the Appointing

Authority, such Authority should report to the Appointing Authority the
Circumstances in which the order was made.

14.1.11 Before passing an order of suspension the authority proposing to make the
order should satisfy itself that it is competent to pass such an order.

14.1.12 In the case of Government Servants whose services are lent by one
department to another, the borrowing authority can place him under
suspension, but it must simultaneously inform the lending authority of the
circumstances leading to the order of the suspension.

14.1.13 Deemed suspension: A Government Servant, under Rules 10(2), (3), (4) of
the CCS(CCA) Rules, is deemed to have been placed under suspension:

i. If he is detained in custody for a period exceeding forty eight hours with

effect from the date of detention.
ii. If he is convicted of an offence and is sentenced to a term of imprisonment
exceeding forty eight hours, such period being computed from the
commencement of imprisonment and including intermittent periods of
imprisonment.
iii. Where a penalty of dismissal, removal or compulsory retirement is set
aside in appeal or review and the case is remitted for further enquiry, in
such circumstances, the order of suspension shall be deemed to have
continued from the date of the original order or dismissal, removal or
compulsory retirement.
iv. Where a penalty of dismissal, removal or compulsory retirement is set
aside by an order of the Court and the Disciplinary Authority decides to
hold further inquiry on the same allegations, in such circumstances the
Government servant shall be deemed to have been placed under
suspension from the date of the original order of dismissal, removal or
compulsory retirement.

14.1.14 When the CBI advises suspension: There are certain kinds of case where
the CBI will invariably advice that the officer should be placed under
suspension. Suspension of Government Servants in these cases would be
fully justified:

a. In a trap case where the Government Servant has been apprehended

while committing an act of corruption.
b. Where as a result of a search, he is found to be in possession of assets
disproportionate to known sources of income and, prima facie a charge
u/s 5 of the PC Act can be made out against him.

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c. When a charge-sheet accusing him of specific acts of corruption or
moral turpitude has been filed in a criminal court.
d. Where after investigation by the CBI, a prima facie is made out, for
RDA for major penalty has been established and charge-sheet has been
established and charge sheet has been served on the Government
Servant, alleging specific acts of corruption or gross misconduct
involving moral turpitude.

14.1.15 Order of suspension: The Government servant can be placed under

suspension only by specific order made in writing by the Competent
Authority. He should not be placed under suspension by an oral order. In
the case of deemed suspension, suspension takes effect automatically even
without a formal order. Though the validity of the suspension is not affected
by the non-issue of a specific order, it is desirable for purposes of
administrative record to pass a formal order. Standard forms of orders of
suspension are available and may be amplified/modified suitably to meet the
requirements of each case.

14.1.16 Revoking of suspension: Under Rule 10(5) of the CCS(CCA) Rules, an

order of suspension made or deemed to have been made, may, at any time, be
revoked by the Competent Authority in the following circumstances:

A. Departmental Proceedings

i. If it is decided that no formal proceedings need be drawn up with a view

to impose a penalty of dismissal, removal or compulsory retirement, or
reduction in rank.
ii. Where the final order passed is other than dismissal, removal or
compulsory retirement.
iii. Where the Government servant is exonerated of the charges against him.
iv. Where in appeal or revision, the order is modified into one other than
dismissal, removal or compulsory retirement and no further enquiry is
considered necessary.

B. Criminal Offence

i. In arrest and detention cases, where it is decided not to proceed further

against the Government Servant by filing a charge-sheet in the court.
ii. If appeal/revision against acquittal in a higher court fails.
iii. If acquitted in a trial court or if an appeal/revision in higher court against
the conviction succeeds and it is not proposed to continue the suspension,
even then departmental proceedings may be initiated against him.

14.1.17 Appeal against suspension: Though suspension is not a penalty, relief is

available to the Government Servant by way of appeal under Rule 23 of the
CCS(CCA) Rules. A Government Servant should, therefore, be informed of
the reasons leading to his suspension. Where suspension is on the ground of
“contemplated” disciplinary proceedings the reasons for suspension should
be communicated to the Government servant within three months from the
date of his suspension. The time-limit of forty-five days for submission of

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appeal will count from the date on which the reasons for suspension are
communicated to him.

14.1.18 Review of suspension: The public servant under suspension draws

subsistence allowance, for doing no work, at the cost of exchequer. It is
therefore, desirable that suspension period should not be prolonged.

14.1.19 The disciplinary authority has the inherent power to review a case of
suspension. It is also mandatory to do so periodically when the official
concerned has already been served with a sheet under RDA or criminal
prosecution against him has been launched. The purpose of such review
would be to see:

a. what steps can be taken to expedite the progress of the court

trial/departmental proceedings, and
b. how the order can be revoked when its continuation would not be
justified having regard to the circumstances of the case.

14.1.20 The quarterly review of the subsistence allowance gives an opportunity to the
competent authority to review not merely the quantum of subsistence
allowance, but also the substantive question of suspension itself.

14.2 Provision under Fundamental Rules

FR 53(1): A Government servant under suspension or deemed to have been

placed under suspension by an order of the Appointing Authority shall be
entitled to the subsistence allowance equal to half average pay or half pay and
the D.A admissible on such leave salary. If the suspension period exceeds
three months, the authority which made the suspension order can vary the
subsistence allowance for any subsequent period by an order, i.e., it may
increase or decrease the subsistence allowance by a maximum of 50% of the
subsistence allowance admissible during the first three months (increase will
be effected if the suspension is prolonged for the reasons not attributable to the
Government Servant and decrease would result in opposite circumstances).
But, such reasons are to be recorded in writing.

FR 53(2): No payment under sub-rule (1) shall be made unless the

Government servant has furnished a certificate that he is not engaged in any
other employment, business or vocation.

FR 54: Under this fundamental rule, the suspension period is to be regularised

after the revocation of the suspension.

Chapter - 14

ACCOUNTING PROCEDURE

1.1 While assessment and collection of direct taxes is important, it is equally

important that they get accounted for accurately and promptly. Direct taxes
are collected all over the country through a large network of about 20,000

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branches of authorised banks. They are accounted for by various Zonal
Accounts Offices situated in different Regions in the country. Simultaneously,
the banks send the Challans and the related documents to the Central Treasury
Unit (CTU) of the department which accounts for the same and also generates
reports needed to enable Assessing Officers to give due credit to the taxpayers
for the tax payments made by them. Subsequently the accounts made by the
CTU are reconciled with those of Zonal Accounts Offices (ZAO). This
chapter discusses the accounting procedures followed by these two bodies, the
ZAO and the CTU.

PART – A: ACCOUNTING PROCEDURE – ZAO

2. Organisational setup

2.1 In pursuance to the Government of India decision to departmentalise the work

of receipt accounting, the need arose for a new system for accounting of tax
receipts and refunds in the Income-tax Department. Prior to 1st April 1977,
accounts of direct tax receipts and refunds were kept by the Accountant
General concerned in each State. From 1st April 1977 onwards, however, all
work relating to accounting of direct taxes receipts and refunds has been taken
over by the Central Board of Direct Taxes. The organisational structure of the
accounts wing in the Central Board of Direct Taxes is as follows:

Finance Secretary – chief accounting authority

Financial Advisor, Department of Revenue

CBDT

Principal CCA is the (apex authority for tax accounting). His main functions
are:
a. Accounting of all receipts and registers.
b. Accounting of all expenditures.
c. Internal audit of tax accounting by the Income-tax department and banks
which collect direct taxes.
d. Monitoring and overseeing of overall banking operations with regard to
direct tax collections, accounting and reconciliation.
e. Rendering financial and technical advice to the Ministry of Finance in
matters relating to collection, accounting, remittance and reconciliation of
direct taxes.

He carries out these functions through 24 ZAOs and other officers all over the
country.

2.2 The ZAO-wise names of the centres where the receipts of direct taxes are
accounted for are given in the “Directory of bank branches authorised for
direct tax receipts and refunds work” published by the Principal CCA, CBDT.

2.3 The revised procedure introduced with effect from 1st October, 1988
eliminated the system of focal point banks and link branches. In the revised
procedure each bank has a nodal branch at the headquarters of the ZAO.

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3. Procedure for acceptance of taxes at the receiving branches

3.1 An assessee may pay direct taxes at any authorised branch of the nominated
bank either in cash or by a cheque/draft drawn on the same bank or another
bank/branch at the same centre where the payment is made. The payment of
tax by outstation cheques/drafts can also be made at the offices of RBI and
SBI or its associates conducting Government Business. It should in all cases
be accompanied by the prescribed Challans.
3.2 According to the instructions issued to all the banks by the Reserve Bank of
India, while accepting the payment, the receiving clerk or teller of the
receiving branch will have to check up the following points:

a. The challan form has been filled in properly and the major head of
account to which the amount is to be accounted/credited is correctly
recorded therein;
b. Details of the name and address of the assessee, his status, assessment
year and ITO Ward or Circle where he is assessed are properly filled in.
The nature and type of payment and the amount should be written
correctly both in words and figures.
c. The Permanent Account Number (PAN) has been quoted in the challan at
the prescribed place. U/s 139A(5)(b) of the Act, quoting of PAN is
mandatory. Therefore, the designated banks accepting tax payment
should ensure that the Challans for payment are accepted only when PAN
is quoted in the challan. However, where the taxpayer indicates that he
has already applied for allotment of PAN but has not yet been allotted the
same, the tax payment Challans may be accepted by the bank provided
the tax payer produces a copy of the PAN application already filed by
him or gives a letter to that effect. Such Challans should be forwarded to
the computer centre without detaching the copy of the PAN application
from or the letter submitted by him.

3.3 The branches should not refuse to accept Challans on flimsy grounds, e.g., that
the staff is inadequate, the taxpayer has no account with the branch; the
taxpayer is not a resident of the area of operation of the branch; the amount is
tendered in small denomination notes; the payment is not made by means of
cheques, etc. When, however, a challan is refused for some valid reason, the
same should be intimated to its tenderer.

3.4 After scrutinising the challan and satisfying himself that the amount of cash,
cheque or draft tendered agrees with the amount shown in the challan, the
receiving teller or counter clerk of the branch will issue a paper token to the
assessee to facilitate delivery of the receipted challan to him. In the case of
Challans deposited with a cheque or draft, the receipted Challans will be
issued only on realisation of the amount. Hence, the Counter clerk will
indicate on the token the date on which the receipted copies of the challan will
be available.

3.5 The following challan forms are prescribed for payment of various direct
taxes:

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Sl.
Type of Tax Challan Form to be used
No.
1. Tax on Companies ITNS 268 (0020 Corporation Tax)
2. Tax Deducted at Source ITNS 269 (0020 Corporation Tax)
from Companies
3. Income Tax ITNS 270 (0021 Tax on Income other
than Corporation Tax)
4. Income Tax deducted at ITNS 271 (0021 Tax on Income other
source from persons other than Corporation Tax)
than companies
5. Wealth Tax WTNS 20 (0032 Wealth Tax)
6. Gift Tax GTNS 38 (0033 Gift Tax)
7. Interest Tax ITNS 272 (0024 Interest Tax)
8. Expenditure Tax ITNS 273 (0028 Other taxes on income &
expenditure

3.5 The branches should display a notice “Direct tax payments are accepted here”
at a prominent place within the branch’s premises.

4. Challans tendered with cheque/draft

4.1 A challan tendered with a cheque/draft will be branded with a ‘double date
stamp’ to indicate the date of tender of the instrument as well as the date of
realisation. It is possible that some branches might be following the practice
of branding the Challans with an inward date-stamp as soon as the Challans
are tendered over the counter. In that case the double date-stamp may not be
necessary. However, it will be ensured that the inward date-stamp is
invariably branded on all the copies.
4.2 The cheque /draft will be sent for realisation and Challans for scrolling. On
realisation the date thereof will be indicated on the double date stamp or in the
space in the challan as the case may be. After signing the challan for having
received the amount, the tenderer’s copies will be returned to the tenderer
against the surrender of the token.
4.2.1 A running serial number will be given to all the Challans received on each
day. So far as any individual challan is concerned, all copies of the same will
be numbered simultaneously on the right hand top corner (the same number
appearing on all the three/four copies of a set) to facilitate scrolling
afterwards.
4.2.2 Where the challan has four parts, the assessee will be supplied two receipted
copies instead of one.
4.2.3 Copies of the Challans tendered along with cash/cheque/draft payable at the
same branch will be returned to the tenderer duly receipted during the course
of the day except when such transactions are large in number. In that case,
they should be returned not later than the working day following the date of
tender. The Challans tendered with cheques/drafts drawn on a different
branch of the same bank or any other bank situated at the same centre, will be
returned duly receipted not later than the working day following the day fixed
under the rules of ‘Local Bankers Clearing House’ for return of unpaid
instruments of any day’s clearing.
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5. Preparation of scrolls
5.1 The receiving branch will prepare scrolls on a daily basis. A running serial
number extending to a financial year (1st April to 31st March) will be given to
the scroll, separate serial number being given for scrolls relating to each type
of tax and the serial number so given will be prefixed by the appropriate
abbreviation of the type of tax concerned, e.g., Income-tax (IT), Corporation
Tax (CT), etc. The branch will also prepare a summary of receipts.
Thereafter, the scrolls/Challans and summary will be made into sets as under:
a. One set will contain the original of the receipts scroll, each scroll, being
accompanied by the relative Challans arranged in the same serial order in
which they are entered in the scrolls. This set is intended for the
Designated Officer in-charge of the CTU/Computer Centre.
b. A second set similarly made will contain the duplicate copies intended for
Zonal Accounts Officers.
c. A third set will contain the triplicate copies of the scrolls (without
Challans) and also the summary for the record of the nodal branch.

5.2 At the beginning of the next working day, the receiving branch will forward
all the 3 sets mentioned above to the nodal branch (situated at the ZAO
Centre).

6. Procedure for payment of income tax refund orders (ITROs)

6.1 Direct tax refund work is entrusted to only one branch either of RBI or SBI or
an associated Bank of SBI at an ITO centre/a district. The Refund Orders will
be presented to the branch by the assessee for payment in cash or credit to his
account with the same branch. Alternatively, it might be received through
clearing. The specimen signatures of the officers of the Income-tax
department who are authorised to draw refund orders will be sent to the
branches concerned in advance by the Income-tax authorities. The specimen
signature will be duly certified by an officer of the Income-tax Department
whose specimen signature is already on record with the branch. Any change
in the authorised official will be advised to the branch concerned immediately.
The specimen signature of the relieving officer will be attested by the relieved
officer. While passing the refund orders for payment, apart from the
precautions usually exercised by the banks in connection with payment of
negotiable instruments, the following points will be noted:

a. In the case of refunds of amounts below Rs.1,000/-, the Income-tax

authorities will issue to the assessee two foils of the relative refund order
and the payment in respect of such refund orders will be made on
presentation of both the copies.
b. In the case of refund orders, exceeding amounts of Rs.1,000/-, the
Assessing Officer will issue one foil of the order to the assessee.
Simultaneously, the concerned officer will send to the paying branch a
refund advice in duplicate. The number on the ITRO and the refund
advice will be the same. The payment of the refund order will be made
only on the strength of the refund advice received in the branch.

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c. The payee is required to put his signature in the space provided for
‘Claimants signature’ on the reverse of the Income Tax Refund Order
(ITRO). This is applicable in cases where ITROs are being issued in the
form of cheques under non-MICR (Magnetic Ink Character Recognition)
technology, i.e., the old conventional form. However, at the places where
ITROs are being issued in the form of cheques for clearance (which is
presently prevalent in the four metropolitan cities of Delhi, Mumbai,
Calcutta and Chennai) no discharge by the payee on reverse of the ITROs
is required.

6.2 As in the case of receipts, refunds are required to be classified by the paying
branch according to the type of tax under which the refunds are made.
Separate major head wise payment registers will be maintained in respect of
payment of ITROs.

7. Preparation of payment (refund) scrolls

7.1 The procedure for preparation of payment scrolls will be the same as
applicable to receipts scrolls.

7.2 The scrolls will be made into sets similar sets relating to receipts except that
instead of the Challans, the paid refund orders/refund advices will accompany
the scrolls. Besides, the set meant for the Designated Officer in charge of the
CTU/Computer Centre will not contain any copy of refund order in case of
refunds for amounts exceeding Rs.1,000/- as only one foil is issued by the
Assessing Officer to the taxpayer which is to be forwarded to the ZAO. In
respect of refunds of Rs.1,000/- and above, the paying branch will attach one
copy of the advice to the set of payment (refund) scroll meant for the
designated officer and retain the other for its record. The scrolls etc. will be
sent to the nodal branch along with the payment receipts scrolls.

7.3 If the nodal branch is not locally situated, all the above documents
(receipt/refund scrolls, etc.), should invariably be sent by registered post.

8. Loss of Challans by the assessees

8.1 In the event of loss of receipted Challans by the depositors, the bank branches
may, on receipt of a specific request in writing for issue of a Certificate of
credit from assessees, issue the same to the depositor based on their record
after satisfying themselves about the bonafides of the applicant in each case.
A fee of Rs.20/- per certificate may be charged to the depositor. The penalty
will however be waived in cases where the Challans are lost in postal transit or
lost/misplaced at the branch itself.

9. Functions of nodal branch

9.1 The Nodal branch will be responsible for the prompt and accurate accounting
of the collections/refunds reported to it daily by all the branches under the
jurisdiction of the concerned zone of the Income-tax department (including its
own receipts). It will also be responsible for prompt remittance of the
collections of all the receiving branches (including its own) linked to the

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Government account at RBI, CAS, Nagpur. It will also be responsible for
reconciliation of figures with the ZAO.

9.2 On receipt of 3 sets of scrolls and Challans/paid instruments etc. as indicated

above, the nodal branch will take the following action on a day to day basis:

a. It will consolidate the copies of the scrolls (without Challans) received

from all the branches including its own by stitching the scrolls together
DO-wise and major-head-wise and retain one stitched set (copy) for its
record.

b. It will consolidate and stitch, Designated Officer-wise (in some zones

there may be two or more DOs) and major-head-wise, the remaining two
copies of scrolls/Challans received from the receiving branches (including
its own).

c. It will include these transactions in its daily main scrolls to be prepared in

triplicate DO-wise and major-head-wise. These should be given a running
serial number extending to a financial year. It will forward one
consolidated set of scrolls (including a copy of main scroll) together with
the Challans to the local ZAO concerned on day to day basis. Another
similar set containing the Challans marked ‘Original’ and intended for the
Income-tax Department may be forwarded to the concerned Designated
Officers daily.

d. The Nodal branch will also prepare in triplicate, separate main scrolls for
payments (i.e., refunds), DO-wise and major-head-wise and forward them
along with the set containing payment scrolls, the advice notes (for refunds
of Rs.1,000/- and above) and paid ITROs (up to Rs.999/-) to the DOs and
the other set containing payments scrolls and the paid ITROs (in both the
cases, viz., for refunds up to Rs.999/- and for Rs.1,000/- and above) to the
ZAO. One copy of the advice note will be retained by the paying branch.

e. If the Designated Officer is not locally situated, (in cases where two or
more DOs are there in a zone) all the above documents should invariably
be sent by Registered Post.

f. During first 25 days in April every year, the nodal branches will prepare
two separate scrolls – one pertaining to the March transactions which
means cheques/drafts/ITROs tendered and cleared upto 31st March by
receiving branches and scrolls of the same sent to the nodal branch
subsequent to 31st March but before 25th April will be scrolled by nodal
branch as March residual account (They will intimate the link branch at
Nagpur for inclusion of these transactions as March transactions. The
nodal branches will send another scroll for April transactions prominently
indicating the month of account. Any cheque/draft tendered on or before
31st March and realised on or after 1st April will be treated as part of the
April transactions of the next year.

g. The nodal branch will pass on the consolidated amount accounted by it to

its link cell at Nagpur on day to day basis.

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10. Crediting the tax collected to Government Account

10.1 The Nodal branch acts as a pooling centre for all the receiving branches
coming under it control and it is responsible for reporting of the transactions
along with all the related documents, i.e., Challans and scrolls to the ZAO and
the Income-tax Department as well as to its link cell at Nagpur for crediting
the amount collected to RBI (Central Accounting section or CAS), Nagpur.

10.2 The Nodal branch will prepare a daily memo and send it on a daily basis to its
link cell at Nagpur (GAD, Mumbai in case of SBI) which in turn will make a
daily settlement with RBI, CAS, Nagpur.

10.3 The link cell of the bank at Nagpur will monitor the daily receipts and check
the accuracy of the daily memos received from the nodal branches. The link
cell will then pass on the daily memos to the CAS, RBI, Nagpur.

10.4 The Nodal branches of the banks will carry out monthly reconciliation with
ZAOs of the amount settled by them with their link cell at Nagpur. On the
basis of their records the ZAOs will verify the statements received from the
nodal branches, both major-head-wise and nodal branch-wise. In case of any
discrepancy the nodal branch will carry out the corrections immediately and
adjust the different in the amount already credited/debited to the CBDT’s
account through its link cell at Nagpur under information to the ZAO.

10.5 For the purpose of final reconciliation of the transactions with concerned
ZAOs and the link Cell, the CAS, RBI, Nagpur will generate a monthly
statement and furnish the same to ZAO and the link cell of the banks. RBI,
CAS, Nagpur will furnish by 20th of the following month, a monthly analysis
indicating major head wise receipts/refunds etc. to the CCA, CBDT.

11. Payment of interest on delayed transfer of tax collections

11.1 The tax collections effected by the designated branches of the Nationalised
Banks have to be credited in the Government account, promptly. The
maximum number of days allowed for crediting tax collections to Government
account at CAS Nagpur, are as under—

No. of days
i) Collections by local branches 5 days (including Sundays and
(i.e., at places where the Holidays)
nodal branch and ZAO are
situated and its agglomerate
ii) Collections by out stations 9 days
branches

11.3 If there is any delay beyond the period prescribed above, the banks are liable
to be charged penal interest. The interest for the defaults as mentioned above,
is to be qualified and collected from the defaulting bank by the ZAO. There is
a detailed specific procedure prescribed by RBI for quantifying the interest
and collecting the same.

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12. Accounting of March transactions

12.1 RBI, Central Office, Mumbai has issued special instructions to all banks
collecting direct taxes regarding the procedure to be adopted in accounting the
March transactions.

12.2 The Nodal banks will be receiving scrolls relating to March of the previous
year in April of the current year. In order to account for the entire collections
of March in the same financial year, the nodal banks have to follow the
following procedure during the month of April.

12.3 The Nodal banks have to prepare two sets of separate scrolls – one pertaining
to March residual collections and another for April transactions during the first
25 days in April. They should ensure that all the tax collections made by the
receiving branches upto 31st of March are accounted as “March residual
transactions” and should not be mixed up with the transactions of April which
fall in the financial year. The main scrolls for March transactions prepared
from 1st to 25th April are to be distinctly marked as “March residual”.

12.4 It may be also be noted that the cheques/amount realized on or before 31st
March should be treated as transactions relating to the current financial year
and should be accounted for as such under the head “March or March residual
transactions” in the next financial year.

12.5 While reporting to their link cell in Nagpur an Nodal banks should send two
sets of figures distinctly showing March residual and April transactions
separately upto 25th April.

12.6 The date-wise monthly statements should also be prepared in two sets, one
pertaining to March residual transactions and another relating to April
transactions.

Other important points

14. Special arrangements during March every year

13.1 The branches should follow the procedure explained in the earlier paragraphs
meticulously and ensure that the collections made towards direct taxes are
passed on promptly for credit to Government account through the nodal
branch/link cell. However, during the second fortnight for March every year,
wherever the receiving branches and nodal branch are situated locally, a
special messenger system should be introduced by the receiving branches. All
efforts may also be made to provide the collection figures on daily basis to the
branches. All efforts may also be made to provide the collection figures on
daily basis to the ZAO during the second fortnight of June, September and
December, every year, for onward transmission to the Government for
monitoring, estimates, etc.

15. Formation of monitoring committee-holding of periodical meetings

14.1 For the smooth functioning of the revised scheme for collection and
accounting of direct taxes by Public Sector Banks (PSBs), the monitoring
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committees consisting of officials from nodal banks/local authorities of the
banks ZAO and IT Department will be formed at every Zonal Accounts Office
centre. The committee will meet once half-yearly and discuss various issues
connected with direct tax work such as accounting, scrolling, reporting,
remittance and reconciliation of direct taxes, etc., and make efforts to sort out
the problems at its own level. Further, annually there will be a special
monitoring committee meeting in which very senior officials from CBDT, IT
Department and banks will participate and redress the various problems being
faced by the banks, ZAOs and IT Department in the fields. Banks will ensure
that the necessary follow up actions are taken on the minutes of such meetings.

15. Redressal of public grievances

15.1 Each Public Sector Bank (PSB) should have an effective procedure for dealing
with public complaints at the branches rendering service to Government
departments or members of the public as prescribed, from time to time.

16 Use of magnetic media for expenditure transmission of tax payments

information by banks to the Government

16.1 During the year 2001, a new procedure for submission of challan data on
magnetic media by the banks has been introduced in addition to the procedure
prescribed for transmission of Challans and scrolls by nodal banks to the CTU
and ZAO, they are now required to send in magnetic media the following core
data:
a. Branch Code (Numeric 9)
b. Major-head code (Numeric 4)
c. Serial number of Challan (Numeric 4)
d. Name of the Assessee (Character, 130)
e. Amount of Challan (Numeric 15, in paise)
f. PAN under the new series (TAN in the case of TDS case of challan) if
quoted in the challan (or) Assessing Officer code or AO description
(Ward/Circle etc) (Character, 20) if mentioned in the challan.
g. Data of transaction (i.e., date of receipt of cash/realisation of
Cheque/DD).
h. Date of daily main scroll (of nodal branch).
16.2 The banks are required to capture the above data from the data as available in
the Challans. Floppies containing these data are required to be sent by each of
the nodal banks, to the CTU as also to the ZAO along with the daily scrolls.
This procedure was introduced on an experimental basis at Mumbai with
reference to SBI, w.e.f. 1.4.2001. Later the scheme has been extended to other
centres like Chennai, Delhi and Calcutta. It is expected to be extended to all
other centres shortly.
16.3 Receipts of such data on magnetic media will simplify, to some extent, the
work of processing of Challans/refund vouchers at the CTU.

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PART – B: ACCOUNTING PROCEDURES

(CENTRAL TREASURY UNIT & TAX ACCOUNTING SYSTEM)

17.1 In the following paragraphs accounting of tax collected by the CTU,

processing of Challans on computers by the Regional Computer Centres
(RCC), generation of daily collection registers (referred to as cash book) and
other reports discussed.
18. Processing of Challans at CTU under TAS
18.1 The accounting of direct tax collections is being carried out at 36 computer
centres of the Income-tax Department using the Tax Accounting System
(TAS) software. The present procedure for accounting of direct tax
collections has made a radical departure from the previous procedure in that it
has dispensed with the need for transmission of the Challans to the Assessing
Officers. Under the present procedure, credit for tax payment will be given by
the Assessing Officer on the basis of the authenticated daily collection report
generated by the Computer Centre.
18.2 The Challans will be centrally stored at the Computer Centre and will not be
distributed among the Assessing Officers. Credit will be given on the basis of
the authenticated Daily Collection Register prepared by the Computer Centre.
The revised procedure is applicable only to the Challans and refunds paid
vouchers are received from the banks by the Department. The copies of the
Challans furnished by the assessee along with the return of income will
continue to remain in the assessment records. Centralised processing of
Challans has come into place w.e.f. 1.4.1992.
19 Central Treasury Unit
19.1 The Nodal branches of the banks receiving the Challans would send them
directly to the concerned Computer Centre. The Central Treasury Unit (CTU)
comes under the Computer Centre and an Assessing Officer will be nominated
as the Designated Officer (DO) for the entire centre. The Challans together
with the scrolls, etc., will be received by the DO of the CTU and it shall be the
responsibility of the CTU to ensure the prompt receipt of the
Challans/vouchers together with other related documents, from the banks in
time. The DO will liaison with the banks if there are any delays in
transmission of Challans or discrepancies in the Challans and scrolls.
19.2 After receipt of the Challans and scroll, the officials in CTU shall scrutinise
the Challans and scrolls to ensure the following:
19.2.1 Physical tally of the challans with the total number of challans as per scroll
should be made.
19.2.2 Identification of the missing and surplus challans. The surplus challans may
be detached and kept in a separate file till they are accounted for by the Bank.
19.2.3 Intimation to the bank about the missing and surplus challans and lack of
continuity of serial numbers of main scroll, etc.
19.2.4 Detaching of challans not relating to direct taxes and sending them back to the
bank.

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19.3 Apart from the above, the main scrolls should be entered in the bank scroll
register. A separate bank scroll register should be maintained for each bank.
19.4 The CTU marks the CTU date on the daily summary. The summary, Main
Scroll and branch scroll are to be coded on the basis of bank code and major
head.
20 Tagging
20.1 The official responsible for tagging should ensure the receipt of challans on
daily basis from the bank and should ensure that the challans received are
physically tallied with the number shown in the scroll. Any surplus or missing
challan should be immediately brought to the notice of the DO for necessary
action with the concerned banks. Normally, the bundles of challans and
scrolls will not be opened or disturbed. They would be processed as they are,
without being split into different bundles. However, where the bundles are
big, splitting of challan bundles into tags of approximately 200 challans should
be done so that easy handling of challans is ensured at subsequent stages. It
should also be ensured that the challans are properly secured so that they do
not come out during subsequent processing.
21 Coding of challans
21.1 After the challans have been properly tagged, the scrolls and challans will be
coded in the CTU as under:

Scroll Coding Challan Coding

i. Batch i. Batch
ii. Bank ii. Bank
iii. Total Challans iii. Assessing Officer
iv. Total amount iv. Major Head
v. Minor Head
vi. Sub-head
vii. Status
21.2 The structure of the codes is as under:
i. Batch Code: A scroll and its accompanying challans constitute a batch
and both have the same batch number. The batch number would consist of
seven digits; the first digit denotes the bank, the second digit denotes the
month, the third and fourth digit denotes the date and the last three digits
denote the running serial number of the scroll for a day given by the CTU.
ii. Bank Branch Code: It consists of 5 digits. The last four digits are given
by the bank to denote the branch of the bank. The first digit is given by
the department to distinguish the banks such as a, b, c, d…, etc. This will
be the same as the first character of the batch code.
iii. Assessing Office Code: It consists of six digits to denote the Assessing
Officer, the Joint Commissioner and also the Commissioner. If it is not
possible to identify the Assessing Officer, a code meant for suspense file
may be given. Similarly codes will be given for outstation charges.
iv. Similarly, there are codes for major-heads, minor-heads, sub-heads and
status. Even if payments are made in wrong challans, the CTU should

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make proper coding prominently. After the scrolls and challans are coded,
they will be sent to the data entry section.
22. Tax Accounting System (TAS) – Scope and significance
22.1 After the challans are coded further processing of the challans is carried out
through computers. The challans are entered into the computer through a
software known as TAS. TAS is one of the ITD applications in use by the
Income tax department under its comprehensive computerisation plan. TAS is
an on-line, menu driven and Windows ‘95 based software. The screens are
user-friendly, easy to use, self-explanatory and supported by messages. These
screens can be used to perform different functions like data entry, query
execution and report generation. The main functions that are carried out in
TAS are discussed in the following paragraphs:
23 Entry of main scroll and branch scroll
23.1 First, the data entry operator will enter the daily summary followed by the
main scroll and branch scroll. Only after this, will be enter the batch of
challans.
23.1.1 In the present system of accounting, each challan/paid refund voucher shall go
through a cycle of five operations before being declared clean and ready for
posting.
24.1 First entry: Firstly all the fields of the challans/paid refund vouchers of a
batch will be entered by an operator. At this stage, the system shall capture
the operator’s identity with each challan and the time stamp with each batch.
After completing the first entry of the batch, the operator shall not have access
to the same batch. The system ensures that the operator opens only one batch
at a time for data entry.
24.2 Second entry: The batch, after the first entry is over, will be handed over to a
second operator who will not be the same person who made the first entry.
Whereas at the first entry stage, all the fields of information are captured on
the system, at the second entry level, the operator will enter the PAN and
amount for all the challans. If PAN is not there, name and Assessing Officer
code shall be entered. The TAS provides for second data entry of certain
specified fields of information in order to ensure accuracy of the data entered.
Here again, the system retains the operator’s identity and time-stamp at the
batch level.
24.3 Mismatch of challans/vouchers: After the second entry, the Office
Superintendent will see the mismatches between the challan data entered by
the two operators and will carry out modifications on both the data after
physically comparing the data with the challan. The officials doing the
mismatch will clear the batch once the mismatch has been completed by him
in respect of that batch. The identity of the official and the time-stamp will be
captured by the system for each batch.
24.4 Inspector clearance: After the correction, the batch will be checked by the
Inspector. The Inspector shall see on the system, all challans of Rs.5,00,000/-
to Rs.20,00,000/- and verify with the physical challans to ensure the
correctness of the data entry made. If any modification is carried out by the
Inspector his identity and time stamp will captured by the system. After the

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Inspector has verified all the challans physically, he will give confirmation of
the batch. After giving confirmation, the Inspector’s identity and time-stamp
are captured and the Inspector shall not have any access to the batch again.
But the Inspector can reopen the batch for data entry and subsequent
operations without loss of data already captured.
24.5 DO clearance: After the Inspector’s check, the batch will be checked by the
Designated Officer (DO). The DO shall see on the system all challans above
Rs.20,00,000/- and verify the same physically with challans. If he has to carry
out any modification on the challan data, his identity will be stored with the
challan data. After the DO has verified all the challans physically, his identity
and time-stamp will be captured in the system. After giving his confirmation,
the DO will also not have access to the batch. However, the DO can reopen
the batch for data entry and subsequent operations without any loss of data
already captured. The challans are marked “clean and ready for posting” only
after DO’s confirmation. Then only report generation can take place.
25. Security check – inbuilt in TAS
25.1 There are four levels of inbuilt security in TAS. Four classes of users are
identified for this purpose:
i. DO is the sole member with “Z” class.
ii. ITI’s and supervisors are “Y” class.
iii. DEO’s, the largest class will be “X” class.
iv. The fourth are the AOs for Suspense Management and they are
classified as “A” class.
25.2 The system ensures that access is allowed to the authorised class only when
needed. The user’s identity and time stamp are captured and thereby complete
‘audit trail’ is ensured.
26. Generation of report
26.1 The supervisor will generate the following ten reports after the DO clearance
is over and after the challans/vouchers are made clean and ready:
i. Provisional daily collection
ii. Daily collection report
iii. ZAO report
iv. Simple major-head-wise report
v. AO-wise net collection report
vi. CIT wise collection report
vii. Range-wise collection report
viii. CTU-wise collection report
ix. Bank letters
x. Challan print.
26.2 The daily collection registers will be generated in respect of each Assessing
Officer separately for each of the following payments:
a. Advance tax
b. Self-assessment tax
c. TDS
d. Regular demand
e. Other receipts

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26.3 The daily collection report will be authenticated by the DO who will sign it in
full with seal.

27. Support functions

27.1 Apart from the above, TAS will carry out the following support functions:
i. Transmission of outstation challans with outstation reports.
ii. Challan suspense resolution.
iii. Incorporation of the corrections suggested by the Assessing Officers.
27.2 Letters will also be generated through the system to the Banks/ZAO for
reconciliation in respect of cases where there is a difference between the
figures shown by the banks and the figures arrived at by totalling the challans
and scrolls by the department.
28. Reconciliation
28.1 The collections effected and reported to the ZAO by the Nodal banks are
treated under the head “receipts awaiting transfer” (RAT) by the ZAO till such
time he receives a detailed report from the CTU classifying the collections
major-head-wise and Assessing Officer-wise. The CTU will submit the
major-head-wise account in the prescribed format on a regular basis to the
ZAO. In turn, the CTU will receive from the ZAO a monthly statement of
scrolls received by the ZAO from the nodal branches (major-head-wise). The
CTU will verify this with reference to its registers and will return it to the
ZAO in the prescribed format. In case there is a difference, it shall be
reconciled by the computer cell of the CTU and necessary report sent to the
ZAO. The procedure to be followed in this regard is as per the procedure for
accounting of direct taxes prescribed by the CBDT.
29. Outstations challans and statements
29.1 Collections relating to the other charges will be sent to the respective charges
by way of authenticated daily collection sheets. The challans will not be sent
with this sheet. The collection of one charge will not be reduced or that of
another charge increased in this process. The CTU receiving the collection
sheet will enter the data in its system and the collections will be distributed
among the AOs periodically by way of a separate daily collection report.
30. Suspense resolution
30.1 When the challans received by the CTU do not contain the correct details as to
the AO to whom they belong to or when challans do not contain the
name/address, etc., they go to the suspense file. Apart from this, the challan
particulars intimated by the AO as not pertaining to him from the DCR will
also go to this ‘Suspense file’. Correction of entries should be made for these
later categories of challans. Likewise every effort should be made to minimise
the suspense figure by distributing the collection correctly to the concerned
Assessing Officer (AO).
31. Storage retrieval of challans/paid vouchers
31.1 As already discussed the challans shall be under the custody of the Computer
Centre and they will not be distributed among the AOs. They should be

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stored, after processing in a record room with facility for easy retrieval
whenever required.
32. Functions of the Assessing Officer receiving the daily collection registers
from the CTU
32.1 The CTU will send the DCR every month after processing all the challans
relating to a single month. On receipt of the DCR, the Assessing Officer shall
scrutinise the DCR received to see that:
32.1.1 The AO code, page number and entry number and total collections are
correctly entered.
32.1.2 The major-head-wise collections are properly reflected.
32.1.3 The Assessing Officers should bear in mind that the daily collection report is a
cash book and that all its entries must be given credit with cross references.
32.1.4 The Assessing Officer will check the daily collection register and find out if
any entry does not relate to him. In respect of entries that do not belong to
him, the Assessing Officer will prepare a list and send it to the Computer
Centre. The Assessing Officer will make suitable noting in the remarks
column of the daily collection register.
32.1.5 The Computer Centre will carry out the necessary corrections. The details of
the corrections made will be mentioned in the daily collection register of the
subsequent date and after the normal entries of collections are mentioned,
these correction entries will be mentioned, at the bottom, giving suitable cross
references. The running total will accordingly be modified.
32.1.6 No tampering with the daily collection register sent by the Computer Centre
should be attempted under any circumstances.
33. Use of TAS for Assessing Officers
33.1 Advise corrections on clean challans/refunds: The Assessing Officer can
correct the following types of errors that have crept in during the process of
data entry of tax payments/refunds:
i. Challans relating to an Assessing Officer, but wrongly entered in the old
Assessing Officer code. In such a case the challan can be viewed/claimed
from the option ‘Advise Correction’ by giving name of the assessee and
amount of challan on the query screen. The corrections made have to be
cleared by the Designated Officer at RCC and once cleared the changes
made are saved.
ii. PAN is not quoted on the challan but AO code is mentioned and has been
entered into the system. In such case, PAN can be entered and saved
through ‘Advise Correction’ option and clearance by the Designated
Officer at RCC.
33.1.1 Claim from suspense: While entering the data, when it is not possible to
relate a tax payment/refund to an AO code, it is kept in suspense. An AO can
view all tax payments/refunds kept under suspense and claim those
payments/refunds which relate to his/her AO code. The claim is subject to
clearance by the Designated Officer at RCC. Once cleared, the tax
payment/refund is accounted under the AO code of the AO who made the
claim.

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33.1.2 Claim missing challans/refunds: The AO can also view all the tax
payments/refunds classified under ‘Missing challans/refunds’. Where a tax
payment/refund which relates to his/her AO code is found, he/she can copulate
the challan/refund, if the missing data relating to the challan/refund is
available. The AO can also confirm that the tax payment/refund relates to
his/her AO code. This confirmation is subject to clearance by the Designated
Officer at RCC. Once cleared, the tax payment/refund is accounted under the
AO code of the AO who made the claim.
33.1.3 Query challans/refunds: The AO can make the following queries:
i. Queries relating to posting of challans in his/her AO code. The AO can
verify through a TAS query whether a payment made by an assessee
coming under his/her jurisdiction has been correctly entered and posted in
his AO code and whether it is correctly reflected in the statement
pertaining to his/her ward/circle.
ii. The AO can ascertain the details of encashment of refunds issued by him.
iii. The AO can, by entering a range of dates ascertain the collection/refund
figure of his/her ward/circle for that period.
iv. the details of collections on the basis of minor heads like advance tax, self
assessment, TDS and regular assessment collections can be viewed by the
AO for a period.
This query option is available for Addl. CIT/JCIT and the CIT of the
Assessing Officer.
Apart from the above the AO can make queries to ascertain the details of:
a. All missing challans/refunds including those which have been claimed and
cleared by the Designated Officer.
b. Query all challans/refunds for correction including those which have been
corrected by AO and cleared by Designated Officer.
c. Query all challans/refunds laying in suspense.
33.1.4 It may be mentioned here that the result of the query reflected on the screen
relates to challans cleared by the Designated Officer only. If for a particular
period for which query is made, some challans received from the banks are yet
to be cleared by the Designated Officer, such data would not be included in
the results seen by the Assessing Officer on his screen.
33.1.5 Maintenance of Personal Deposit Accounts: Under the Income-tax rules,
Commissioners of Income-tax are authorise to operate Personal Deposit
accounts in Government Treasuries for depositing moneys seized from
persons suspected to have evaded tax. Personal deposits accounts may be
authorised to be opened under the special order or permission of the Ministry
or Department concerned in consultation with the Pr.C.C.A., CBDT and the
Controller-General of Accounts. After departmentalisation of accounts in
1976, instead of treasuries, such moneys are deposited at the focal point
branches of RBI/SBI at the headquarters of the Commissioners of Income-tax.
Moneys seized at the other centre are deposited by the concerned officers at
the focal point branches at those centres with a request to transfer the same to
the personal deposit account at the focal point branch at CIT’s headquarters
free of cost. The amount deposited into the personal deposit accounts is also
required to be transferred to RBI, CAS, Nagpur on a day to day basis for

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crediting to Government Account and the amount outstanding in these
accounts will only be notional balances. The focal point branch at the CIT’s
headquarters will send a separate scroll for such receipts directly to the Zonal
Accounts Officer (ZAO) with a copy to the officer operating the personal
deposit accounts.
33.1.6 Since July 1978, the Tax Recovery Officers are allowed to maintain such
accounts with focal point banks. Repayments are also made under this
account on the authority of personal deposit cheques issued by the
Commissioner’s headquarters. For this purpose, cheque will be issued by
ZAO. The focal point branch has to send a separate payment scroll for such
payments along with the paid cheques to the ZAO. A copy of the scroll
without the paid cheque is sent to the officer operating the personal deposit
accounts. The focal point banks maintaining the personal deposit accounts are
also required to prepare at the end of every month a monthly statement
including:
i. Opening balance
ii. Total receipts
iii. Total payments; and
iv. Closing balance.
33.1.7 By 5th of the following month, the focal point branches have to send one copy
of the statement to the concerned account holder and three copies to the Zonal
Accounts Officer.
34. Opening and operation of Personal Deposit Accounts:
34.1 In cases of Tax Recovery Officer (TRO), the PD accounts will be opened at
the branch of RBI/SBI at the respective centre where he is posted. Where
there is more than one TRO at one centre, specific sanction to that effect will
be conveyed by the Board with the approval of the CGA through Pr.C.C.A,
CBDT.
34.2 When a new account is to be opened in favour of a TRO, necessary sanction to
this effect will be obtained by the concerned TRO. Thereafter, the ZAO will
authorise the opening of the account in the books of the concerned branch of
RBI/SBI at the centre at which the TRO is posted.
34.3 Moneys will be paid into these PD accounts accompanied by the prescribed
challans. Withdrawals will be made by means of cheques drawn by the
concerned account holder. It should be ensured that the withdrawals made
from this accounts should not exceed the amount deposited into them. It may
be noted that the amount of deposits and withdrawals are required to be
adjusted daily to Government account. The balances held in PD accounts at
the branches are only notional balances. The delay in transferring the amounts
under the PD accounts to the Government Account will attract penal interest at
the same rate as in case of delayed remittance of direct collections to
Government Account.
34.4 While passing cheques for payment from these accounts, the branches will
follow the procedure laid down in this regard for passing of Government
cheques in the Memorandum of Procedure relating to accounting of
Government payments under the Departmentalised System of Accounts.

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34.5 The branches will prepare receipts and payments scrolls as well as monthly
statements as at present and furnish the same to the ZAO and the officer
operating the accounts.

Chapter – 13

TRAINING
1. National training policy
1.1 The Ministry of Personnel, Public Grievances and Pensions has formulated a
National Training Policy. This lays down guidelines for the training needs of
the employees of various Ministries/Departments. The latter issues necessary
orders for implementing the training policy, after taking into account their
specific requirements, in respect of the employees falling within their
jurisdiction.
1.2 The National Training Policy has recognised training as one of the effective
and tested tools for performance enhancement, as well as for upgradation of
knowledge and skills of personnel. Hence training is to be imparted to all
rungs of the Civil Services starting from the lowest and cutting-edge level to
the highest policy making level. For this purpose, the Civil Services are
divided into the following three levels:
i. Group ‘D’ services and lower stages of Group ‘C’ services
ii. Supervisor levels and the junior management/administrative levels
iii. Group ‘A’ services comprising the middle and higher management/
administrative levels.
Accordingly, all civil servants should receive induction training at the time of
entry into service as well as in-service training at suitable intervals in their
career.
2. Departmental training set-up
2.1 Keeping in line with the National Training Policy, the organisation set up of
the training in the Income-tax department is as follows:
i. National Academy of Direct Taxes, Nagpur (NADT) – Induction
courses for the IRS probationers along with other senior level and
specialised courses.
ii. Direct Taxes Regional Training Institutes at Bangalore, Hazaribagh,
Kolkata, Lucknow and Mumbai (DTRTIs) – Courses for participants at
the level of inspector upwards.
iii. Ministerial Staff Training Units (MSTUs) functioning under the
various DTRTIs – Courses for the Ministerial Staff and Group ‘D’
levels.
2.2 Training to the Departmental personnel is also imparted in the following
fields:
a. Computer Training – the DIT(Systems) organises training on
computers and the use of departmental software. The job of imparting
this training is undertaken by DIT (Systems) directly and is outsourced
to other agencies. They, in turn, conduct the training sessions for the
departmental personnel at various cities. In addition to this, NADT

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and RTIs is also imparting training on computers to departmental
personnel.
b. Official Language – training courses on the use of Hindi in official
work are conducted regularly by the Chief Commissioners in their
respective regions. In addition, the Official Language Implementation
Cell of the Ministry of Home Affairs also conducts long-term/part-time
training programmes on Hindi typing and shorthand for stenographers
of Central Government departments including the Income-tax
Department.
c. Specialised Courses – the Departmental personnel are also deputed to
under go training in specialised courses conducted by various other
training organisations. These courses would cover fields as diverse as
taxation and fiscal studies, management administration, investigation
and forensic science. In addition to the training conducted by the
Department of Personnel and Training at various institutes situated all
over the country, courses are also conducted under the CIDA and
OECD programmes.
d. Foreign training – the Government runs various schemes under which
eligible officers are deputed for training abroad. Such training could
be in the field of fiscal studies and/or allied disciplines, management,
public administration, etc. It could be conducted under the aegis of the
International Monetary Fund, World Bank, etc.
3. Training needs of different cadres
3.1 As the duties and responsibilities differ from cadre to cadre, based on task
analyses of different cadres, necessary inputs are given by the training
institutes. The courses are also designed in such as way that proper training
could be imparted at different levels. For this purpose, the courses are divided
in the following manner:
i. Basic courses: These courses are conducted for the benefit of the persons
who directly recruited to a particular post, and include sessions on the
functioning of the department, taxation laws and other allied acts as well
as administrative matters. The basic courses are:
a. Induction course for the IRS probationers –NADT
b. Induction course for Direct Recruit Inspectors – RTI
c. Induction course for Direct Recruit Ministerial Staff and Group ‘D’
staff - MSTU
ii. Orientation courses: These courses are for participants who are promoted
from one cadre to another, wherein the participants are sensitized to their
new role and are given inputs for securing improved performance in the
new job. The details of these courses are indicated below:-
Officers promoted from Venue
a. ITOs to Acs -- NADT
b. Inspectors to ITOs -- RTI
c. Other cadres to Inspectors -- RTI
d. OS to A.O. -- RTI
e. STA to O.S. -- MSTU
f. TA to STA -- MSTU

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g. LDC to TA -- MSTU
h. Group ‘D’ – Notice server -- MSTU
i. Group ‘D’ to LDC -- MSTU
iii. Refresher Courses: After having put in three to five years in a particular
cadre, officials are called for a refresher course in which their knowledge
of law and procedures is updated. New Techniques being adopted both
by the Department and assessees are also discussed.
iv. Specialized courses: These courses deal with specific subjects depending
upon the requirements of the field.
v. Information technology courses: The NADT as well as the DTRTIs are
equipped with Computer Labs for conducting courses on Information
Technology. These courses include basic training on computers as well
as departmental software packages.
4. Training calendar
4.1 An annual conference of the trainers is held at the NADT in the beginning of
the calendar year where matters related to training are discussed and the
training calendar of NADT, DTRTIs as well as the MSTUs is finalised. This
calendar is prepared based on the suggestions given by the field, feedback of
earlier courses and the current action plan. The training calendar prepared by
the NADT is circulated to all the Regions, while the calendar of DTRTIs and
MSTUs is circulated to the Region/Regions from which the participants are to
be nominated.
4.2 The training calendar contains inter alia the following details:
i. Courses to be held during the year
ii. Period and duration of the courses
iii. Eligibility criteria for the courses
5.1 On receipt of the training calendar, the cadre controlling Chief Commissioners
make the necessary nominations of the participants who are to attend different
courses. Normally, the nominations are made at least a month in advance of
the commencement of the course so that necessary arrangements are made to
ensure that the work does not suffer and the nominee is relieved of his regular
duties. It also helps the participants to make arrangements for their travel if
the training is to be imparted at a place outside their headquarters.
5.2 Care should be taken at the stage of nominating the participants to ensure that
only eligible persons get training. For example, in an orientation course, only
newly promoted persons should be nominated. Similarly, for a specialised
course, the persons who are either working in the area or are likely to be
appointed to a post where the training inputs could be made use of, should be
nominated. As regards basic courses (for persons who are directly recruited to
a cadre), and orientation course (for persons promoted from one cadre to
another), it should be ensured that such training is imparted to the persons
concerned within a year of their recruitment/promotion.
5.3 To facilitate nominations, a register should be maintained in the office of
CCIT giving cadre-wise details of the departmental personnel to be training as
also the names of persons who should be nominated for specialised training

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depending upon suitability and requirements. This would ensure that the
required training is imparted at the proper time.
5.4 As each batch of trainees consists of a limited number of persons, requests for
cancellations should not be acceded to. If for any unavoidable reason, the
nomination of a person is cancelled, a substitute should be nominated
immediately, so that the batch is full. Any failure in this regard deprives a
person the benefit of training and is also a drain on Governmental resources.
For this reason, if after being nominated, a person abstains unauthorisedly
from the training programme, strict action under the relevant rules should be
taken against him.
5.5 The NADT has come out with a novel scheme of self-nomination. Based on
the training calendar circulated by the NADT, self-nominations can be made
for the various in-service courses by willing officers depending on their felt
needs. The officers are required to get their felt needs vetted by their
Controlling Officers before forwarding the self-nomination form to the Joint
Director (P & R), NADT.
5.6 For training outside the Department, nominations are to be routed through the
CCIT/CBDT based on the criteria indicated in the letters of the various
training institutes calling for nominations. The information on the different
training programmes conducted by these institutes are also available in the
CBDT newsletter. Nominations for foreign training either under CIDA or any
other scheme are made by the CBDT.
6. Conduct of courses
6.1 One of the faculty members functions as a Course Co-ordinator. The
functions of the Course Co-ordinator, inter-alia, include:
i. Drawing up the schedule of sessions
ii. Fixing up the faculty including guest faculty
iii. Sending letters to the participants in which they are informed the
details of the course as also any pre-training preparation required from
them. The expectations of the participants from the course could also
be obtained so that necessary modifications can be made to the
schedule, if required.
iv. Liaisoning with the participants to ensure smooth functioning of the
Course.
v. Obtaining feed back from participants at the end of the Course.
6.2 The feed back reports are processed and suggestions for the improvement of
the courses are taken note of. In case certain issues are raised which require
clarifications, they are brought to the notice of the CBDT.

Chapter – 14

PUBLIC RELATIONS AND GRIEVANCE REDRESSAL

MECHANISM
1. Projecting an “assessee friendly image”, and providing taxpayer services are
now accepted as important functions of the department. The Citizens’
Charter, which was adopted by the department in November 1988, prescribes
that the officials of the department will help assessees by:

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a. Being courteous and efficient
b. Informing them of their rights, duties, entitlements and obligations under
the law.
c. Providing information, leaflets, forms etc. to them at information and
facilitation counters.
d. Imparting knowledge to them with regard to procedures for legal remedies.
Some of the steps taken by the Department in this direction are discussed
below.
2.1 Grievance redressal mechanism: The grievances of assessees can arise due
to a number of reasons – delay in transfer of files, harassment during a search,
a survey or assessment proceedings, discourteous behaviour of officials, at the
time of hearings, etc. Grievance redressal is a major aspect of department’s
public relations exercise. The Department has created an elaborate grievance
redressal machinery, to cater to this aspect. This machinery is created with the
following objects:
i. Prompt redressal of every public grievance;
ii. Safeguarding the rights and dignity of a taxpayer in a democratic set-up;
iii. Enforcing higher standards of accountability on officers and staff of the
department by taking disciplinary action against erring persons in
selected cases;
iv. Gaining insight into the working of the system through the feedback
received from the public with a view to effecting appropriate changes in
the system;
v. Acquiring better knowledge about officers and staff;
vi. Using public grievance as an input for the functioning of
the department’s vigilance machinery.
2.2 For this purpose, a hierarchy of Grievance Cells has been created in the
Department, as under:
a. Central Grievance Cell under the Chairman, Central Board of Direct
Taxes;
b. Regional Grievance Cells under the Chief Commissioners/Director
Generals of Income-tax;
c. Grievance Cell under the out-station Commissioners of Income-tax.
2.2.1. Central Grievance Cell: This has the original function of attending to public
grievances received directly by it. It also has supervisory function of
overseeing the Regional and other Grievance Cells. The Regional Grievance
Cell submits two-monthly reports to this Cell. Director(HQ), CBDT is
generally responsible for the activities of the Central Grievance Cell.
2.2.2 Regional Grievance Cell: This has original jurisdiction of attending to the
grievances relating to the jurisdiction of CITs, CITs(Central), DITs(Inv.)
stationed at the headquarters of the respective CCITs/DGITs as also
out-stationed CITs/CITs)Central)/DIT(Inv.). It sends a consolidated
bi-monthly report to the CBDT, in respect of Grievances received by it and
out-stationed Grievance Cell.
2.2.3 Grievance cells under outstation Commissioners/Director Generals of
Income-tax: These are located at different places, where the headquarters of
CIT/CIT(Central)/DIT(Inv.) are located away from the headquarters of the
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Chief Commissioner/Director-General of Income Tax. These Grievance Cells
attend to public grievances, relating to assessees within the respective
jurisdictions. They have to send a bi-monthly report in the prescribed
proforma, to the Regional Grievance Cell.
2.3 The procedure prescribed for dealing with the grievance petition is as
under:
2.3.1 Whenever a grievance petition is received by any office other than the
Grievance Cell, the original petition has to be sent to the Grievance Cell
concerned. The officer receiving the petition shall keep a copy of the same
and immediately act on it. A compliance report has to be sent to the
Grievance Cell through proper channel, on the basis of the action taken. The
Grievance Cell in turn registers the grievance and allots a running number to
it.
2.3.2 The Grievance Cells have to ensure that, all the grievances are redressed
within a reasonable time by the field officers. Where it is not possible to help
the assessee, he should be informed accordingly.
2.3.3 It is mandatory to send grievance petitions to the field officers, only through
the respective CCITs/DGITs(Inv.). Similarly, reports are also received only
through them. The object of this is, to ensure that the supervisory officers
know about the working of the officers and staff functioning under them.
2.3.4 Where the assessee sends petition simultaneously to different hierarchical
officers, the out station Grievance Cell or the Regional Grievance Cell or the
Central Grievance Cell, may de-register such a grievance and make
appropriate corrections while reporting.
2.3.5 While sending a grievance petition to a Commissioner/Officer for redressal,
the officer should be asked to report compliance, within a specified time.
Each grievance must be pursued till it is closed, so that every petition
received, is ultimately disposed of.
2.3.6 The Commissioner/Chief Commissioner should analyse the areas where
grievances are common and take systematic measures to prevent recurrence of
such grievances. Further, action has to betaken against delinquent officials, in
really bad cases.
Adequate publicity has also to be given regarding the existence of the above
Grievance Cells.
2.4 Maintenance of registers and reports
2.4.1 A grievance register has to be maintained by every Grievance Cell and every
Assessing Officer.
2.4.2 Every grievance should be segregated into various categories.
2.4.3 A bi-monthly report should be sent by the out station Grievance Cell to the
Regional Grievance Cell.
2.4.4 The bi-monthly report should reach the Regional Grievance Cell by second
week of February, April, June, August, October and December of every year,
in respect of all proceedings of previous two months. For example, the reports

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for the months of December and January should reach the Regional Grievance
Cell by the second week of February.
3.1 ‘Samman Scheme’
3.1.1 As part of the public relations exercise and also to motivate taxpayers to
comply with the statutory obligations, the department has recently started a
‘Samman’ scheme. The scheme functions as under:
3.1.2 The ‘Samman’ Scheme was introduced in 1998 “to demonstrate the society’s
recognition of the honest tax payers’ important contribution to the nation’s
cause”, as stated by the Finance Minster in his budget speech. The scheme
envisages recognition of honest tax payers falling in each of the three
categories, namely – business, profession and salary, at different levels.
3.1.3 As per this scheme, individual tax payers falling in each of the above three
categories who declare higher income for any financial year will receive
‘Samman’ award at the national level, at the CCIT level, at the CIT level and
at the level of every station where an Income-tax office exists.
3.1.4 The names of the awardees at the national level are to be decided by the
Board; at the regional level, by the CCIT concerned and at the CIT local
levels, by the CIT concerned with the approval of his CCIT. The person who
receives ‘Samman’ award in a particular year, will not be eligible for
‘Samman’ award at the same level of the next three years after the year of
receipt. He may, however, be entitled for ‘Samman’ award at a higher level.
The Board has also prescribed certain eligibility criterion for getting
‘Samman’ award.
3.2 The following persons are barred from getting ‘Samman’ award:
a. Persons against whom penalty for concealment of income has been
imposed in any of the preceding five years and such penalty has not been
cancelled by any appellate authority.
b. Persons who have been searched in last five years.
c. Persons against whom prosecution for any offence punishable
under provisions of any direct tax enactment has been instituted during
last five years.
d. Persons who have defaulted in timely submission of returns or payment
of tax in any of the preceding five years.
e. Persons who have been granted waiver of interest or penalty by the
Commissioner of the Settlement Commission during last five years.
f. Persons who have not obtained or duly applied for PAN.
g. Persons against whom:
i. Prosecution for any offence punishable under any provisions of any
indirect tax enactments has been instituted during the last five years.
ii. Prosecution for any offence punishable under Chapter IX or Chapter
XVII of the Indian Penal Code (45 of 1960), the Foreign Exchange
Regulation Act, 1973 (46 of 1973), the Narcotic Drugs and
Psychotropic Substances Act, 1985 (61 of 1985), the Terrorists and
Disruptive Activities (Prevention) Act, 1987 (28 of 1987), the
Prevention of Corruption Act, 1988 (49 of 1988), or for the purpose
of enforcement of any civil liability has been instituted during the
last five years.
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iii. Such persons have been convicted of any such offence punishable
under any such enactment.
iv. In respect of such persons in respect of whom an order of detention
has been made under the Conservation of Foreign Exchange and
Prevention of Smuggling Activities Act, 1924 and such order of
detention has not been set aside by a court of competent jurisdiction
during the last five years.
v. Any such person has been notified u/s 3(2) of the Special Court
(Tribunal or Offence Relating to Transaction in Securities) Act,
1992.
h. A person shall not be eligible for the same award for the next three years
after the year of receipt. He may, however, be entitled to a higher award
in those years.
3.3 Privileges provided to the ‘Samman’ awardees
The ‘Samman’ awardees are eligible for the following privileges:-
a. No scrutiny of the return for a period of three years;
b. Granting of Income Tax Clearance Certificates for a period of
three years;
c. Prompt issuance of refunds on the filing of the return;
d. Disposal of applications for rectification of mistakes/appeal effects, etc.,
within 15 days of receipt of the same.
e. Selection as taxpayers’ representative in Tax Advisory Committees at the
level of administrative Commissioners.
4.1 ‘Sampark’ scheme: Under this scheme, various taxpayer services are to be
provided using Information Technology. These include, availability of forms
on the departmental website and a return preparation software for generation
of returns of income through a simple question-answer session. The
departmental web site is available with the domain name
www.incometaxindia.gov.in . In this, taxpayers help information and forms
are available. These include forms for the return of income and information
relating to the bulk filing scheme called ‘Suvidha’.
5.1 Regional Direct Taxes Advisory Committee: With a view to increasing
mutual understanding and co-operation between taxpayers and the Income-tax
department and enhancing the public image of the department, the scheme of
constituting a “Regional Direct Taxes Advisory Committee”, has been
formulated by the Government of India. The functions of the committee, as
stated in the Board’s letter from F. No.146/26/98-ITCC, dated 17th March,
1999, are as under:
i. The Committee would be an advisory body and would deal with matters
relating to income-tax, wealth tax, estate duty, gift-tax and expenditure-
tax.
ii. The Committee would discuss measures for developing and encouraging
mutual understanding and co-operation between taxpayers and the
Income-tax department and removing administrative and procedural
difficulties of a general nature.
iii. The Committee would be concerned with the problems of regional
interest only.

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iv. It shall not discuss individual cases, nor shall it discuss matters relation to
taxation policy of the Government.
v. The term of members of the Committee would be for two years. The
Committee would meet twice a year – in April and October. Copies of
the Agenda and Minutes of the Meeting may be sent to the Board for
information.
5.2 Each RDTAC would include a representative from each of the following
categories. Its composition would be as under:
i. Chairman – CCIT/Commissioner of Income-tax
ii. M.P. of the State/Region
iii. Lawyer dealing with the income-tax matters
iv. Chartered Accountant
v. Representative of Trade
vi. Representative of Industry
vii. Representative of State Government
viii. University Professor/College Principal
The proposals for nominations are sent by the Chief Commissioners to the
Board.
6. Interactive Voice Response System (IVRS)
6.1 The IVRS is a facility for providing pre-recorded replies on telephone in
respect of frequently asked questions through dedicated telephone lines. The
facility has been initially set up at Delhi, Mumbai, Chennai and Kolkata. A
dedicated telephone No.1956 has been blocked throughout the country for use
by Income Tax Department for IVRS facility. The facility is available in
Hindi, English and one regional language. The scheme contains seven
sections relating to various types of queries on computation of taxable income
under different heads, deductions and exemptions, tax rates, procedures,
various forms, important dates, PAN etc. Simple questions, which are
generally raised by taxpayers in respect of these areas and their replies, have
been provided in the form of pre-recorded text. The pre-recorded message
offers various options available under the menu and its sub-menus and invites
the caller to press a particular number depending upon the query and he
wishes to pose. The system also has a facility of providing written reply
through fax in case the caller is speaking from fax phone. The text is updated
after the passing of the relevant Finance Act. The system takes care of routine
queries and keeps a record of the number of persons accessing it and the
statistics relating to various queries made by the callers.

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