Monetary Ceilings for Write-off of irrecoverable Dues of Direct Taxes Raised and Reconstitution of Committees

Instruction No : 14/2003 Date : 06.11.2003

To,
All Chief Commissioner of Income Tax and
Directors General of Income Tax

Raising the Monetary Ceilings for Write-off of irrecoverable Dues and Reconstitution of Committees

In partial modification of earlier instructions on the subject, the Board have revised the prescribed monetary ceilings for write-off of irrecoverable dues of Direct Taxes by the various income-tax authorities. At the same time, the Board have reviewed and modified the existing structure of the Committees for recommending write-off. The revised procedure in this regard would be as follows:

Regular Procedure:

2. A three-tier structure of Committees (as against two at present) to consider and recommend write-off has been approved as under:

++ Zonal Committee
++ Regional Committee, and
++ Local Committee

2.1 Accordingly, the monetary ceilings with respect to the powers of various I.T. authorities to write-off irrecoverable dues have been enhanced and the level of authority whose administrative approval would be required for write-off has been re-defined. Further, the respective jurisdiction of the tree Committees over write-off proposals has been re-delineated.

2.2 The revised scheme for write-off under the Regular Procedure is summarized in the following Table:

Committee Constitution To be notified by order of write-off by monetary ceilings for write-off
Local Committee 3 officers of the level of Addl. CIT CCIT ITO/TRO Demand upto Rs.5,000/-
DCIT/ACIT Demand over Rs.5000/- and upto Rs.25,000/-
Addl. CIT/JCIT Demand over Rs.25,000/-
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 over Rs.1 lakh and upto Rs.10 lakhs
Zonal Committee 3 officers of the level of CCIT CBDT CCIT Subject to report to the next higher authority Demand over Rs.10 lakhs and upto Rs.25 lakhs
CCIT with the approval of Full Board Demand over Rs.25 lakhs and upto Rs.50 lakhs
CCIT with the approval of Full Board and the Finance Minister Demand over Rs.25 lakhs

2.3 All other conditions and requirements under the Regular Procedure would remain unchanged.

Ad-hoc Procedure:

3. Under this procedure, the overall monetary ceiling has been raised from the present level of Rs.2,0000- to Rs.5000/-. Presently, irrecoverable demand exceeding Rs.500/- requires issue of Irrecoverability Certificate by the Tax Recovery Officer (TRO). Such Certificate will now be required only in cases of irrecoverable demand exceeding Rs.2,000/-

Summary Procedure:

4. The monetary ceiling under this procedure has been raised from the present level of Rs.25/- to Rs.1,000/-

4.1 All other conditions and requirements under the Summary Procedure would remain unchanged.

5. These instructions shall apply to irrecoverable dues under all Direct Tax enactments. It is reiterated that all procedures and conditions under the existing guidelines pertaining to write-off of irrecoverable demand, other than those mentioned herein, shall remain in force. All proposals to be sent o the Board and the Minster 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. Instructions regarding constitution of the various Committees are being issued separately.

F.No.375/3/2002-IT(B)

Sd/-
(Anand Jha)
(Deputy Secretary (Budget)

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