INCOME TAX

Parameterisation of AO and DO limits for suspense claim  -  matter regarding-Ref : OLTAS INSTRUCTION NO. 14, dated 04.07.05 (copy enclosed)

OLTAS INSTRUCTION NO. 37,

Dated: 21.08.2009

Kindly refer to this Directorate's letter of even  number dated 04.07.2005 (containing OLTAS Instruction No. 14)through which it was  decided to decentralize the setting of Assessing Officer (AO) and Designated Officer (DO) limits for suspense clearance.

2. It  has been observed that in some centres the limit has been set as Rs. 1, Rs. 100 etc. as a result of which all the suspense claims are to be cleared by AO or DO. This in turn has resulted into a large backlog of suspense claims awaiting clearance.

3.  Without suspense clearance of challans, collections  cannot be accounted for  in the AO's account. In order to expedite the process of suspense clearance of challans the limit is being enhanced one time centrally. The new limit for AO clearance has been set as Rs. 1,00,000/- (Rs. One lakh) and for DO it has been set as Rs. 5,00,000/- (Rs. Five lakh).

4. This means that suspense challans which have amount equal to or greater than Rs. 1,00,000/-  but less than Rs. 5,00,000/- are to be cleared by AO and suspense challans  which have amounts greater than or equal to Rs. 5,00,000/- are to be cleared by DO.  For amounts less than Rs. 1,00,000/- no clearance is required.

5. It is requested to bring these changes to the notice of all users under your RCC / Computer Centre.

File No. SW/07/01/06/OLTAS INSTRUCTION/DIT(S)II/