What changed
RBI issued an updated master circular (RBI/2011-12/99) replacing the July 2010 version, incorporating all instructions issued till end-June 2011. The circular reiterates the existing framework for direct tax collection, accounting, and reporting, with emphasis on customer service improvements like token issuance and secure challan storage.
What it means for you
Agency banks must ensure strict adherence to the 'Accounting System for Direct Taxes' (Pink Booklet) procedures. Non-compliance with token issuance and challan security can lead to customer complaints and regulatory scrutiny. Banks should review their current practices against the circular's provisions.
What you must do
- Ensure all authorised branches issue paper tokens as immediate acknowledgement for direct tax payments.
- Secure receipted challans properly—avoid open boxes or allowing customers to self-pick challans.
- Train staff on the updated master circular and the Pink Booklet procedures for CBDT dues.
- Verify that remittance and document dispatch timelines meet the revised accounting system requirements.
Who it affects
All agency banks handling direct tax collections, Branch managers and staff at authorised tax collection branches, Compliance and operations teams managing government receipts
What is the Pink Booklet mentioned in the circular?
The 'Accounting System for Direct Taxes' publication, commonly called the Pink Booklet, contains comprehensive RBI instructions on accepting, accounting, and reporting CBDT dues. It has been in effect since October 1988.
Are Fringe Benefit Tax and Banking Cash Transaction Tax still collected?
No. Fringe Benefit Tax was abolished from assessment year 2010-11, and Banking Cash Transaction Tax was withdrawn from April 1, 2009. Banks should not accept these taxes.
What should we do if we observe non-compliance with token issuance?
Immediately correct the process: issue a paper token at the time of payment, keep receipted challans securely, and do not allow customers to collect challans from open boxes. Report any persistent issues to your head office.