Demand Management Fortnight

1

Directorate of Income Tax (Systems)

New Delhi

Demand Management Fortnight

(03.09.2012 to 14.09.2012)

STANDARD OPERATING PROCEDURE

Manuals

DemandManagement Fortnight

INDEX

DemandManagement Fortnight

Standard Operating Procedure

1. The demand uploaded by AOs on the CPC portal together with demand in IRLA is way short of the total demand reported in CAP-I. It has been found that in many cases demand uploaded is incorrect or demand no longer exists in reality, leading to grievances when the CPC communicates the demand or adjusts the same against refunds.
2. It has been ascertained that the demand in a large number of cases has still not been uploaded on the CPC Portal. The DO of Member (L&C) dated 14.03.2012 may be referred. 100% correct uploading of such demand is a target in the Central Action Plan for FY 2012-13 to be accomplished by 30.09.2012.The CCsIT(CCA) are requested to constitute a Nodal group , who may certify and verify that the demand transferred in and out between CsIT has been properly accounted for.
3. The Office of the CIT (CO) is to provide/ be used to provide assistance in this process. List of resource person in the Office of all CIT (CO)s including the nodal officers of CPC and AST Teams shall be available on the CPC demand portal, IRS website and itaxnet.

Action Points and Compliance Report:

1. The uploading of demand entries not yet uploaded can be carried out by Assessing Officers. Assessing Officers are also required to verify the demands and upload correct position on the portal through the Joint/ Additional Commissioner’s role as per process given below in Annexure B. After completion of exercise , the Range head will give a certificate confirming the following:

1. Number of AO wise fresh demand entries identified for uploading, verified and uploaded with total amount involved.
2. Number of already uploaded entries verified and corrected with total amount.
3. Number of entries identified in lists defined in para 6 below with total amount, which cannot be uploaded on CPC Portal.

1. The Range Additional CIT must submit this certificate to CIT concerned by 14.09.2012, which may be consolidated at CCIT(CCA) level and forwarded to DIT (Recovery) and to respective Zonal Memberby 20.09.2012. DIT (Recovery) shall thereupon frame future policies and procedures for demand management including taking steps to write-off of un-collectable demand.

1. Some of the demands with AOs does not have a PAN and this demand cannot as such be uploaded on the CPC-Demand-Portal and CPC-FAS (Financial Accounting System). AOs must take necessary steps to populate PAN where ever possible in such cases. The AOs must, after such efforts have been undertaken, maintain following list of old demands entries:

1. Old Demand where No PAN is available
2. Demand where PAN is available but no files are available
3. Other demands e.g relating to Block Assessments and TDS demands, which are not possible to upload on CPC demand Portal

CCsIT must keep taxpayer wise data in the three lists with them, but communicate only the summary amounts and number of entries to DIT(Recovery) by due date as above.

1. The manual demand would have to be cross verified vis-a-vis the records of the Assessee in the Physical D&CR or in the Case records.

1. Detailed procedure for extraction, capture and collation of arrear data from AST system and other sources is given in Annexure A.
2. Detailed procedure for using Excel Software provided on CPC portal is given in Annexure B.
3. The detailed procedure for uploading arrear demand entries at CPC Accounting System is given in Annexure C.
4. The Assessing Officers have been facing problem in knowing status of demand uploaded on CPC Portal in view of refund adjustments made by CPC and Regular demand payment Challans that have been accounted for by CPC-FAS after the date of uploading of an entry. To facilitate the process, a onetime dump of data from CPC-FAS is being made available to AOs through AST Screen under ’AST > Processing > CPC Interface’ as per Annexure D.

CONTACT of LIST OF CIT (CO) and Nodal Officer, who participated CPC Workshop on 28.08.2012

CPC & AST Nodal Officers

CPC Nodal Officer

Name : Shri Grandhi Mohan Rao,
Designation : ADIT(System), CPC, Bangalore
Landline : 080-25186922
Mob : +919449392082
e-mail :

AST Nodal Officers

1. Name : Shri B M Singh,

Designation : ADIT(System), AST, Delhi
Mob : +919013852809
e-mail :

1. Name : Shri Vikrant Khanna,
   Designation : AD(System), AST, Delhi
   Mob : +919013850919
   e-mail :

Annexure A

Extraction, Capture and Collation Data of Arrear demand

There are following sources where Demand for an Assessee can arise out of processing of return under various section (viz 1431, 154, 1433 etc)

a)Demand generated through ITD-AST/CPC

b)Demand generated by AO out of both AST and CPC system (ie manual demand

and/or TMS demand)

Demand generated through ITD-AST/CPC are residing into ITD-IRLA and AO can view the detail of these demands through IRLA module.

As per AST instruction 82 issued dated 13.08.2010, AO need to upload all such demands on CPC AO portal, which are generated in AST prior 1.4.10. For each demand, a unique identification number (DIN) is to be generated at CPC Financial Accounting System and these demands are to be considered by CPC for adjustment against CPC refunds.

IRLA Demands post 1.4.10 are being shared between AST and CPC through AST-CPC interface and are available in ITD IRLA.

In this way, we can categorize IRLA demands as under

• IRLA Demands generated prior 1.4.10

AO need to upload these demands on CPC AO portal and DIN is generated on portal itself. However, AO must consider Payments by taxpayer (Challan Minor head 400) and Changes in demand done through orders passed outside the system (i.e Manual).

This exercise was to be done in 2010 itself. However, there are some AOs who have not done it so far and 2 more years have passed by. Therefore, a demand, which was raised before 01.04.10, might have undergone a change through a subsequent order on AST-IRLA itself and a DIN would have been already generated. Therefore, figure of such demand (either contemporary figure before 01.04.2010 or current figure after 01.04.2010 is not required to be uploaded on CPC –AO Portal. If any entry of this demand is already made on CPC-AO Portal, the same then uploaded entry would be marked as “Cancelled” in CPC- FAS. The revised demand generated on AST would be available on CPC-FAS and IRLA.

• IRLA Demands generated post 1.4.10

AO MUST NOT upload these demands on CPC AO portal and DIN is being generated in AST itself and is shared with CPC through CPC-AST interface.

Demands generated by AO out of system (i.e. Manual/TMS) are not residing in AST-IRLA and AO is required to upload these demands on CPC AO portal.

To identify a correct picture of IRLA demands a screen has been provided in IRLA module through the following navigation

ITDIRLReports Contemporary and Current position of IRLA Demand

Through this screen, AO can generate various reports under following heads

Head-1: Report Input Criteria

This section provides the latest position of demands lying in IRLA. There are following

Options for report generation

a)Current position of Demand raised in the defined period

This report displays net outstanding demand for a particular PAN and AY (for the latest order) as on current date-1.

Sample Format attached: SRIRLDEM12JUN12172643.csv

b)Contemporary Demand during the defined period

Input parametersare 'Month' and 'Financial Year'(in which demand is raised in the system) and it shows net outstanding demandfor aPAN and A.Y and for the selected month and year.

Sample Format attached: SRIRLDEM05JUN12103759.csv

Following table is illustrating the output of these reports against various actions on demand

c)Summary Report

Shows AO/RANGE/CIT wise summary for net outstanding demands

Head-2: Report parameters for CAP I

This section provides the information of IRLA demands which are supposed to be uploaded on CPC portal and is very much useful for an AO to identify the figures for Cap-1 purpose. User can generate the report with following options:

a)Already Uploaded on CPC portal

Shows AO wise list of cases which have been uploaded on CPC portal where order for that PAN and A.Y has been passed in AST prior 1.4.10

Sample Format attached: SRIRLDEM25AUG12172714.csv

This report is based on matching of PAN-AY of demand entry available on CPC Portal with corresponding entry in IRLA and not on the basis of Amount. Therefore, AO need to verify, if any entry out of this report is to be uploaded or corrected on CPC Portal.

b)Yet to be Uploaded on CPC portal

Generates AO wise list of cases which are yet to be uploaded on CPC portal where order for that PAN and A.Y has been passed in AST prior 1.4.10

Sample Format attached: SRIRLDEM29AUG12115914.csv

This report is in excel format and can be used for extracting IRLA demand entries that need to be uploaded on CPC AO Portal. This captures all the mandatory fields that are required to be filled in the excel utility provided by CPC AO Portal for uploading of Arrear demand .All the mandatory fields will be auto-populated from the data in the system in the report and optional fields will be blank. User can enter any values in these optional fields if required.

However, before this is done, AO is required to verify and consider all challans under Minor head 400, which are still un-posted in IRLA so that correct net demand is uploaded on CPC Portal.

Head-3: Query criteria

User is being given an option to see net outstanding demand after querying for a PAN and A.Y.

Annexure B

Using Excel Software for Extraction,Capture and Collation of Arrear Demand

Step 1 : Go to Input Sheets and import data from .lis file to the Input Text sheet

 Import data from .dbf file into the Input Database Sheet

ENTER data from Manual registers into Input Manual sheet

Step 2 : Merge all input data in Sheet Merged Input

Step 3 : Collect Data in Final Format in Sheet Arrear Demand

Step 4 : Generate XML from Sheet Arrear Demand

Step 5 : Use the Generated XML file for uploading

Step 1 : Go to Input Sheets and import data from .lis file to the Input Text sheet

The arrear demand can be extracted from the AST system using the ADCR report as explained in Annexure A. This report is available in a text file format (.lis extension file)

The import from the text file takes time (for 20,000 records it may take even 3-4 hours). The progress record wise is visible for the AO.

Import data from .dbf file into the Input Database Sheet

The TMS data, if any, can also be extracted into the Excel software. Since the formats and field names differ from place to place, the AO has to ensure that the names of the various fields are correctly aligned to the respective fields as per the fields in the ADCR report from the AST system (which is the standardized format)

In case the TMS data is in different structure to the standard data base structure provided, the AO can change the data structure mapping by going to the “Input Database” worksheet -> Change Settings-> when prompted for password enter “ cpcupload10”.

This will open the “settings” worksheet where the field corresponding to the ADCR field such as SLNO can be re-mapped by entering the new field name (in the green cells) if the data structure is different.

It may be noted that the field name should be exactly the same (case sensitive).

Similarly, in case there are arrear demand entries in manual registers as a result of 143 (3) or rectification done outside the AST system, these demands have to be manually entered in the Excel Software under the worksheet ‘Input Manual’

Step 2 : Merge all input data in Sheet Merged Input

Stop! Verify demand as per CBDT Instructions

Now all arrear demand is combined and available at one place.

 At this stage the demands can be analysed by grouping based on PAN or name etc

 Collections can be verified by viewing tax payments for that PAN, AY from OLTAS

 The rectification register can be verified to reduce demand for that PAN, AY.

 Letter can be issued to taxpayer to cross-verify the demand and for providing opportunity to taxpayer to submit any rectification request, stay petition or giving effect to appellate orders etc.

After all these steps are completed, the arrear demand entries can be finalized and a A & DCR can be printed for FY 2010-11.

AO can then request for inspection of arrears in A &DCR and get the certification from the Range head as per the CBDT instruction.

At this stage the Final ADCR entries are ready for printout and binding

Step 3 : Collect Data in Final Format in Sheet Arrear Demand

At this stage the arrear demand is ready to be uploaded to the CPC arrear system as per details in Annexure C

Annexure C

INCOME TAX DEPARTMENT

GOVERNMENT OF INDIA

CENTRALISED PROCESSING CENTER

BANGALORE

Arrear Demand Management System

TABLE OF CONTENTS

1.Objective of the document

2.Points to be noted for notification of Arrear Demand to CPC

3.Steps for uploading Arrear Demand information for notification to CPC

4.Steps at CPC relating to uploaded Arrear Demand

5.Steps for reversal & changes to demand already uploaded

6.Communication

7.FAQ on Arrear Demand utility when the Portal for AO is ready

1

1.Objective of the document

Arrear Demand refers to Demands already raised on Assessee which are yet to be paid or recovered or adjusted and hence outstanding. This information is to be notified to the Centralized Processing Center (CPC) of Income Tax Department (ITD) at Bangalore so that the same can be adjusted against any refunds due to the Assessee in respect of any subsequent returns processed at CPC and recovered through such adjustment.

2.Points to be noted for notification of Arrear Demand to CPC

1. Arrear Demands in respect of Demands raised outside CPC, can be adjusted at CPC only if a subsequent Return of Income is filed by the Assessee and the same is being processed at CPC. Hence, mere notification of Arrear Demand information will not constitute its adjustment and recovery from the Assessee and this responsibility is not transferred to CPC.

1. Information pertaining to Arrear Demand is to be notified to CPC of ITD in an accurate and timely manner, so that, the same can be adjusted against any refunds computed at CPC before its processing completion.

1. CPC will consider only Arrear Demand information notified to it upto to the point of processing of any subsequent Return of Income filed by the Assessee at CPC. If such information is not available with CPC in a timely and accurate manner prior to such processing completion at CPC, the same cannot be adjusted.

1. CPC will have no means of verification of the Arrear Demand amount notified to it and will adjust any such notified amount against any subsequent refund computed by it for the Assessee, without verification of the Arrear Demand amount.
2. Arrear Demand notified to CPC will be on a unique record-by-record basis (more than one record can be uploaded or notified at a time), with reference to the latest / updated and accurate status of amount recoverable from the Assessee. A fresh upload or notification against a PAN / Assessee to CPC will be treated as another unique additional record and processed if accepted at CPC. Once the Arrear Demand is notified and accepted at CPC, any subsequent amendments / corrections against a specific demand of a PAN / Assessee should be made only per steps listed in the section on “Steps for reversal of demand already uploaded”. To note that once again uploading the any demand amount of the Assessee without adherence to the specified steps could result in duplication and erroneous demand adjustments.
3. Only Assessing officers with valid jurisdiction will be able to upload arrear demand using the login id for the AST.

3.Steps for uploading Arrear Demand information for notification to CPC

a)Log into ITD – CPC portal: {The URL of the site is } and Authenticate by providing the User name and password which would be same as the AST system. Proceed towards ‘Arrear Demand Upload’ under the ‘Arrear Demand Utility’ section of the portal.