INCOME TAX
Instruction No : 7
Date of Issue : 19.8.2004
Subject : Raising the Monetary Ceilings for Write-off and Reconstitution of Committees.
The Monetary ceilings with respect to the powers of various Income-tax authorities to write-off irrecoverable dues of income tax were enhanced and the level of authority whose administrative approval would be required for write-off was re-defined by instructions No. 14/2003 dated 06.11.2003. In partial modification of the said instruction, the Board has revised the prescribed monetary ceilings for write-off of recoverable dues of Direct Taxes by the various income-tax authorities.
2. The revised monetary ceilings for write-off have been mentioned in column 5 of the following Table :
|
COMMITTEE |
CONSTITUTION |
TO BE NOTIFIED BY |
ORDER OF WRITE-OFF BY |
MONETARY CEILINGS FOR WRITE-OFF |
|
1 |
2 |
3 |
4 |
5 |
|
Local Committee |
3 officers of the level of Addl. CIT |
CCIT |
ITO/TRO |
Demand upto Rs. 5,000/- |
|
DCIT/ACIT |
Demand upto Rs. 25,000/- |
|||
|
Addl. CIT/JCIT |
Demand upto Rs. 1 Lac |
|||
|
Sub-Zonal or Regional Committee |
3 officers of the level of CIT |
Cadre Controlling CCIT (under intimation to Board) |
CIT Subject to report to the next higher authority |
Demand upto Rs. 10 Lacs |
|
Zonal Committee |
3 officers of the level of CCIT |
CBDT |
CCIT Subject to report to the next higher authority |
Demand upto Rs. 25 Lacs |
|
CCIT with the approval of Full Board |
Demand upto Rs. 50 Lacs |
|||
|
CCIT with the approval of Full Board and the Finance Minister |
Demand over Rs.50 Lacs |
3. It is further clarified that any proposal for write-off of irrecoverable demand, which has already been recommended by a Zonal Committee or a Local Committee constituted as per the provisions of the earlier instructions/guidelines would not be required to be re-considered and recommended again by a Zonal Committee or Regional Committee or Local Committee, as the case may be, constituted as per the new instructions (Instruction No. 14/2003) dated 6.11.03 and 16.2003 dated 16.11.03). However, the new monetary ceilings as per column 5 of the Table on pre-page would apply for determining the authority that would pass the order for write-off.
4. As regards the monetary ceilings for write-off of irrecoverable dues of Wealth Tax, Gift Tax, Expenditure Tax, Interest Tax and Estate Duty, the revised scheme of write-off is summarized in the following Table :
|
COMMITTEE |
CONSTITUTION |
TO BE NOTIFIED BY |
ORDER OF WRITE-OFF BY |
MONETARY CEILINGS FOR WRITE-OFF |
|
Regional Committee |
3 officers of the level of CIT |
Cadre Controlling CCIT (under intimation to Board) |
Commissioner of WT/GT/Exp. Tax/Intt. Tax/Est. Duty |
Up to Rs.5 Lacs |
|
Zonal Committee |
3 officers of the level of CCIT |
CBDT |
Chief Commissioner of WT/GT Exp. Tax/Intt. Tax/Est. Duty |
Up to Rs.10 Lacs |
5. It may be clarified that writing-off of recoverable dues of revenue would not lead to a release or waiver by the Government of its claim but would be only a write-off in the Department's books. The Government shall have the right at any time during the next 30 years, counting from the date of the claim, to recover the amount by a Civil Suit, if it appears to the Government that the defaulter has got some assets or means to pay.
6. It is reiterated that all procedures and conditions pertaining to write-off of irrecoverable demand, other than those mentioned herein, shall remain in force. All proposals to be sent to the Board and the Minister for write-off shall continue to be routed through Directorate of Income Tax (Recovery) as per the existing guidelines.
These Instructions will come into force immediately.