A. Central Government Account (Receipts and Payments) Rules, 1983:
Date of Receipt for Cheques or Drafts: The Central Government Account (Receipts and Payments) Rules, 1983 contain, inter alia, regulate public moneys received by or on behalf of the Government of India. As per clause 20 of Part I (Preliminary and General Principles), the Date of receipt of Government revenues, dues etc. is determined as follows:
20. Date of receipt of Government revenues, dues etc.-
Government dues tendered in the form of a cheque or draft which is accepted under the provisions of rule 19 and is honoured on presentation, shall be deemed to have been paid-
i. where the cheque or draft is tendered to the bank, on the date on which it was cleared and entered in the receipt scroll;
B. Rule 125 of Income Tax Rules, 1962:
Electronic Payment of Tax: Rule 125 of Income Tax Rules, 1962 relates to Electronic Payment of Tax. The relevant provisions are as under:
The following persons shall pay tax electronically on or after the 1st day of April, 2008:
a company; and
a person (other than a company), to whom the provisions of section 44AB are applicable.
For the purposes of this rule :
“pay tax electronically” shall mean, payment of tax by way of-
internet banking facility of the authority bank; or
In the light of the above, it is suggested that the payments towards TDS may kindly be made through e-payment mode. This helps in better reporting of challan by deductors and consequential matching of such challans.
It shall help the deductors in reduction of late payment interest that may arise due to delay in date of tendering of cheques and date of credit to the Government account.