What changed
RBI issued an updated master circular (RBI/2013-14/99) replacing the July 2012 version, incorporating all instructions issued through end-June 2013. The circular reiterates the accounting system for direct taxes, major heads of account, and the role of agency banks in tax collection.
What it means for you
Banks acting as agency banks must ensure strict compliance with the updated procedures for direct tax collection, including timely remittance and accurate reporting. The circular emphasizes customer service improvements, such as issuing paper tokens and secure handling of receipted challans, to avoid penalties or operational lapses.
What you must do
- Review and implement the updated master circular instructions for direct tax collection via OLTAS.
- Ensure all authorized branches issue paper tokens as acknowledgment for tax payments.
- Secure receipted challans and prevent unauthorized access; issue them only after cheque/draft realization.
- Train staff on the revised accounting and reporting procedures for CBDT dues.
- Download the full circular from RBI's website for detailed compliance.
Who it affects
All agency banks handling direct tax collections, Branch managers and staff at authorized tax collection points, Compliance and operations teams dealing with government accounts
What are the major heads of account for direct taxes?
Corporation Tax (0020), Income Tax (0021), Wealth Tax (0032), and Gift Tax (0033). For further clarification, banks may refer to taxmann.com.