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1 Directorate of Income Tax (Systems) New Delhi Demand Management Fortnight (03.09.2012 to 14.09.2012) STANDARD OPERATING PROCEDURE & Manuals
1
Directorate of Income Tax (Systems)
New Delhi
Demand Management Fortnight
(03.09.2012 to 14.09.2012)
STANDARD OPERATING PROCEDURE&
Manuals
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Demand Management Fortnight
INDEX
S.No.
Particulars Annexure Pages
1 Standard Operating Procedure for Fortnight
3-4
2 Contact List of CIT(CO) and Nodal Officers
5-6
3 Detailed procedure for extraction, capture and collation of arrear data from AST system and other sources
A 7-10
4 Detailed procedure for using Excel Software provided on CPC portal
B 11-16
5 The detailed procedure for uploading arrear demand entries at CPC Accounting System
C 17-33
6 Status of Demand uploaded by AO after date of uploading (Refund Adjustments and Challans paid)
D 34-37
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Demand Management FortnightStandard 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:
4. 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:
i. Number of AO wise fresh demand entries identified for uploading, verified and uploaded with total amount involved.
ii. Number of already uploaded entries verified and corrected with total amount.
iii. Number of entries identified in lists defined in para 6 below with total amount, which cannot be uploaded on CPC Portal.
5. 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 Member by 20.09.2012. DIT
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(Recovery) shall thereupon frame future policies and procedures for demand management including taking steps to write-off of un-collectable demand.
6. 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 :
a. Old Demand where No PAN is availableb. Demand where PAN is available but no files are availablec. 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.
7. 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.
i. Detailed procedure for extraction, capture and collation of arrear data from AST system and other sources is given in Annexure A.
ii. Detailed procedure for using Excel Software provided on CPC portal is given in Annexure B.
iii. The detailed procedure for uploading arrear demand entries at CPC Accounting System is given in Annexure C.
iv. 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
REGION CIT (CO) MOBILE NO. EMAIL ID NODAL OFFICE FOR THE CHARGE
CONTACT NUMBER
1 AHMEDABAD B.S. SANDHU 9408790026 [email protected]
MV KULKARNI, AD(SYS)
9408791822
2 BANGALORE HARSH PRAKASH 8762300168 [email protected]
CHITRA N RAVI KUMAR, AD(SYS)
8762300511
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3 BHOPAL RAJEEV VARSHNEY 9406718222 [email protected]
D PUGHAZHENDI, AD(SYS) BHOPAL
9406717400
4 CHANDIGARH SONALI ARORA 9815237788 [email protected]
RAJDEEP SINGH, AD(SYS)
9814639366
5 CHENNAI E.S. NAGENDRA PRASAD
9445960307 [email protected]
HARIKUMAR, AD (SYS)
9445954169
6 JAIPUR A.K. KHANDELWAL 9530400065 [email protected]
R S RANA, AD(System),JAIPUR
9530480954
7 KOLKATA D.R. SINDHAL 8902198100 [email protected]
S.K. KUNDU 8902195219 skundvad@rediffma
il.com8 LUCKNOW SANJAY KUMAR 9013852366 sanjayirs88@gm
ail.comRAJNISH KUMAR, RCC, LUCKNOW & R.K AHIRWAR, RCC, ALLAHABAD
08005445432
08005445755
8 NAGPUR J.B. MOHAPATRA 7588630007 [email protected]
MRINMAY BAL, AD(SYS)
7588630020
9 PUNE V. ANANDA RAJAN 7588180032 [email protected]
RANGANATHAN, AD(SYS)
7588180584
CPC & AST Nodal Officers
CPC Nodal Officer
Name : Shri Grandhi Mohan Rao,Designation : ADIT(System), CPC, BangaloreLandline : 080-25186922Mob : +919449392082e-mail : [email protected]
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AST Nodal Officers
1. Name : Shri B M Singh,Designation : ADIT(System), AST, DelhiMob : +919013852809e-mail : [email protected]
2. Name : Shri Vikrant Khanna,Designation : AD(System), AST, DelhiMob : +919013850919e-mail : [email protected]
Annexure AExtraction, 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
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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 1.4.10AO 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 1.4.10AO 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
ITDIRLReports Contemporary and Current position of IRLA Demand
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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 parameters are 'Month' and 'Financial Year'(in which demand is raised in the system) and it shows net outstanding demand for a PAN and A.Y and for the selected month and year.
Sample Format attached: SRIRLDEM05JUN12103759.csv
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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
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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.
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Ann e x ure B Using E x c e l Softw a re for E x tr a ction, Ca p t ure a nd C oll a tion of Arr ea r Dema nd
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)
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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.
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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)
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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).
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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
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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
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Annexure C
INCOME TAX DEPARTMENT
GOVERNMENT OF INDIA
CENTRALISED PROCESSING CENTER
BANGALORE
Arrear Demand Management System
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TABLE OF CONTENTS
1. Objective of the document................................................................................................................. 4
2. Points to be noted for notification of Arrear Demand to CPC.....................................................4
3. Steps for uploading Arrear Demand information for notification to CPC..................................4
4. Steps at CPC relating to uploaded Arrear Demand......................................................................4
5. Steps for reversal & changes to demand already uploaded........................................................4
6. Communication............................................................................................................................... 4
7. FAQ on Arrear Demand utility when the Portal for AO is ready..................................................4
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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.
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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.
2. 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.
3. 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.
4. 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.
5. 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.
6. Only Assessing officers with valid jurisdiction will be able to upload arrear demand using the login id for the AST.
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3. STEPS FOR UPLOADING ARREAR DEMAND INFORMATION FOR NOTIFICATION TO CPC
a) Log into ITD – CPC portal: {The URL of the site is https://cpcaoportal.dept.cpc.gov.in} 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.
b)U
RL is
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https://cpcaoportal.dept.cpc.gov.inand can be accessed by all AOs on TAXNET similar to itaxnet
c) Authenticate by providing User Identification and Password {Authentication mode }
d) Proceed towards Arrear Demand Utility section of the portal and download arrear demand upload excel utility from the portal. It is not essential to download the excel utility every time.
e) Refer the manual of the excel utility (Annexure B) to populate the data
PAN
A.Y
Schedule Type
Demand Type
Sec. Code
Date of Creation of Demand
Date of Service of Demand Notice
D & CR No.
Demand Amount
Interest computed U/s220(2)
Interest Calculated Date
Demand Identification Number (DIN)
Source Data
While completing this section, the following items require the appropriate selection from within the dropdown options: Schedule Type, Demand Type, Section Code and Source of Data
f) Completed file is to be saved as ‘XML’ format. It is required to save with distinct filename each time for upload
g) Also verify that the AO code displayed is your AO.
Area Code
AO Type
Range Code
AO Number
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h) Upload the completed file from the stored file path and ensure that the upload is successful
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i) History option shows a list of uploaded files along with record count accepted records and no. of records error-ed if any. Please verify in the history after one day of the successful processing of the uploaded demand in CPC
Note: It is important to note that the AO should upload the arrear demand only after completing all the requirements as per the CBDT instruction.
Therefore, in the AO portal the AO will be required to certify that he has complied with all the requirements of verification of arrear demand and finalization of the comprehensive and accurate A&DCR.
No. Of records successfully updated at CPC
No. Of records rejected during processing at CPC
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4. STEPS AT CPC RELATING TO UPLOADED ARREAR DEMAND
a) After ensuring that the notified Arrear Demand information is received in a form and manner which can be used for further processing at CPC, the same is posted to the Financial Accounting System (FAS) at CPC. If not, the same is rejected and the AO can login into the portal again (usually in 1-2 days time) and check if there were any errors in the upload and whether the notification is accepted at CPC.
b) When the Return of Income of the Assessee against whom a notified Arrear Demand exists, is processed and a refund is computed, the amount of Arrear Demand together with any interest so notified, will be adjusted. Any balance of refund after such adjustment will be paid to the Assessee through the Refund Banker. The electronic information feed will be sent to Refund Banker for the adjusted amount of arrear demand and interest, and this amount will be treated as if it is paid by the assessee to ITD. Through the OLTAS and Refund Banker input feeds, information on payment / adjustment of arrear demand is available outside CPC for update of records, including to the source where the arrear demand originated from.
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5. STEPS FOR REVERSAL & CHANGES TO DEMAND ALREADY UPLOADED
After the upload of the Demand into the CPC Portal, a DIN (Demand Identification Number) is generated & accounted in CPC FAS . It would then be adjusted in case there is a Refund Payable which is processed subsequently at CPC. At a later point of time after the initial upload / notification to CPC, in case the Demand so uploaded is changed due to reasons such as Appeal filed by Assessee, mistake by AO etc, the AO has to follow the following steps to reverse and make changes to the Demand uploaded already and notified to CPC :
a. Download the list of arrear demand already uploaded and locate the DIN corresponding, in the downloaded xml file.
b. Open the xml with the Excel utility ADCR 1.13 (blank)c. Make the necessary corrections for the desired records and remove other records
which do not require any change. Alternatively, include just the desired records (which require change) into any other arrear demand that is being prepared, by maintaining the original DIN reference number.
d. Save the file to xml format, with a new file name.e. Upload the file to CPC portal as per the steps defined above. The corrected file
needs to be uploaded through the Rangehead.
The original entry would be reversed and the new entry for the Demand amount as populated in the amendment upload would be accounted in CPC. This is not an incremental upload but complete reversal of previous upload and re-population of amount with new upload against a specific DIN reference. If the original demand is to be completely reversed and nullified, the same is to be re-uploaded as per steps described above with amount as ‘0’. Negative numbers are NOT to be used for any reversals or adjustments and negative numbers are not be used anywhere. It is to be noted that only ‘Demand amount’ can be changed through this process and other fields such as Assessment Year, Interest computed u/s 220(2), Interest calculated date etc should not be changed. If changed, it will result in DIN validation error..
In case if the original Demand is already adjusted before the change can be updated, the amended arrear demand information would be rejected by the CPC system. It is to be noted that a change can be made against a DIN reference any number of times, provided the amount is not already adjusted in CPC processing.
Examples for Reversal and Changes to Arrear Demand already uploaded / notified to CPC :
Scenario 1 : Arrear demand amount of Rs.10,000 has been uploaded and notified to CPC with DIN reference number 2009200951000002410T obtained but subsequently it is noted that the amount is to be revised to Rs. 8,000. Through the above steps a. to e., the amount
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of Rs.8,000 is uploaded (file name being different from the original / previous upload) with same DIN reference number 2009200951000002410T. If the demand is not already adjusted at CPC, the previous amount of Rs. 10,000 would be reversed and the revised amount of Rs.8,000 against the same DIN reference will be reflected. If the previously notified amount of Rs.10,000 is already adjusted by CPC against a refund processed by it to the Assessee, then the change will be rejected by CPC.
Scenario 2 : Arrear demand amount of Rs.10,000 has been uploaded and notified to CPC with DIN reference number 2009200951000002411T obtained but subsequently it is noted that the demand is to be completed reversed. Through the above steps a. to e., the amount of Rs. 0 is uploaded (file name being different from the original / previous upload) with same DIN reference number 2009200951000002411T. If the demand is not already adjusted at CPC, the previous amount of Rs. 10,000 would be reversed and the revised amount of Rs. 0 against the same DIN reference will be reflected. If the previously notified amount of Rs.10,000 is already adjusted by CPC against a refund processed by it to the Assessee, then the change will be rejected by CPC.
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6. COMMUNICATION
(a) In case of any queries or clarifications required in notification of Arrear Demand information to CPC and its subsequent adjustment if any, the following can be contacted:
Name / Designation Telephone Number Email Address
Shri Mohan Rao,
Asst Director Systems
080-25186922 [email protected]
(b) In case, the query or clarification is not satisfactorily addressed, the following are the Escalation Contact Points:
Name / Designation Telephone Number Email Address
Smt. Amrita Ranjan
Addl Commissioner of Income Tax
080-25186906 [email protected]
Shri Meghnath Chowhan, Joint Commissioner of Income
080-25186900 [email protected]
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7. FAQ ON ARREAR DEMAND SYSTEM
a) What is Arrear Demand Utility?
Ans: The excel upload facility to notify any Demand outstanding against the PAN of an Assessee to the Centralized Processing Center (CPC) of Income Tax Department (ITD), Bangalore is called Arrear Demand utility.
b) When can I upload the Arrear Demand details into the Portal (URL below) by using the utility?
Ans: As soon as the amount of demand against a PAN is determined as payable and has not already been paid / recovered / adjusted, the same can be notified to CPC through the Portal using the utility provided for this purpose. Notification to CPC is to be made only once (provided the same has been accepted at CPC). If there is any change to the amount of demand, the procedure as mentioned in the section 5. Steps for reversal and changes to demand already updated is to be followed. Once notified, such arrear demand is adjusted against a subsequent refund processed at CPC.
c) What is the URL for me to login to the Arrear demand utility?
Ans: The URL of the site is https://cpcaoportal.dept.cpc.gov.in and can be accessed by all AOs on TAXNET similar to itaxnet
d) Is there any limit on the Demand amount to be uploaded?
Ans: There is no limit for the Demand amount to be uploaded or notified to CPC. However, Demand would be adjusted by CPC subsequent to its notification and acceptance, only if there is return processed and a Refund is payable and even here, adjustment can be made only to the extent of refund.
e) What is the mode of notification on the portal for arrear demand to CPC – manual or an excel upload?
Ans: In the Portal, the AO’s would have an option to update the pending Demand manually or if there are a number of cases, then an excel upload facility is available.
f) What is the Amount to be entered? Should it include the Interest u/s 220(2) calculated till date of uploading?
Ans: The Amount entered under ‘Demand Amount’ should be the exclusive of the interest u/s 220(2) and should only state amount of the demand. The amount under ‘Interest computed u/s 220(2)’ should be for Interest u/s 220(2) calculated till the date specified
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under the column “Interest calculated date”. Hence, the demand and interest u/s 220(2) are to be entered in separate columns. To note that in case, CPC is adjusting the demand against a refund to be issued, the interest u/s 220(2) beyond ‘interest calculated date’ will be computed at CPC upto the date of such arrear demand adjustment and recovered, provided the demand against interest is not already paid.
g) Will every AO have a unique login & password for logging into the portal?
Ans: Yes. Each AO can have a user-id & password as desired and this would be the same as the user name & password in the AST system
h) Is there a process to hold a Demand at CPC, which is already uploaded and notified to CPC?
Ans: No. The system cannot hold a demand as the Refund processing and Arrear Demand adjustment is automated and cannot be withheld.
i) What are the mandatory fields to be populated while uploading Arrear Demand information and notifying CPC?
Ans: The following fields are mandatory
(1) PAN
(2) Assessment year
(3) Schedule type(4) Demand type(5) Section code(6) Date of creation of Demand(7) Date of service of Demand notice(8) Demand Amount(9) Interest u/s 220(2), if any(10) Interest calculated date(11) Source data
j) How do we know if the Demand is adjusted at CPC?
Ans: If the Arrear Demand as notified and accepted, is subsequently adjusted at CPC, the transaction against the PAN will be reflected as a Minor Head 400 challan payment through Tax Payer Payments (OLTAS) and will be visible in the OLTAS system providing information on the same.
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k) How do I know if Arrear Demand upload has been successful and accepted for processing / adjustment at CPC?
Ans: In about 1-2 days after uploading the file of Arrear Demand per steps mentioned in this document, log into the portal and check in the ‘History’ option for the ‘Number of records accepted’ and ‘Number of records rejected’ which will provide information on the acceptance or otherwise of individual records by CPC. Generation of a DIN (Demand Identification Number) by CPC system is confirmation of acceptance of the Arrear Demand, for any future processing of the same at CPC. DIN information will be available within the file used for updating the portal, if accepted and posted at CPC.
l) Is there any demand AO should not upload?
Ans: Yes, demands that have been stayed or instalments have been granted by the AO or any other higher authority should not be uploaded. This is because the CPC accounting system does not have information about the stay or instalment scheme and any refund would be automatically used to adjust this demand. This may lead to violation of stay or instalment granted by AO or Higher Authorities.
m) Is there a time limit for upload?
Ans: The time limit is as fixed by the CBDT instruction.
n) Will the CPC system adjust the arrear uploaded by AO against refund arising in AST system?
Ans: No, The CPC System would ONLY adjust arrears against refunds arising in the CPC since it does not have any information about refunds arising in AST system.
o) What about adjustment of arrear demand in AST – will that continue?
Ans: Yes, The AO has to adjust the arrear out of refunds arising in AST system. However, if the AO does not deposit the RO and adjustment challan with RBI / SBI and therefore, the adjustment does not appear as cash collection in OLTAS as Minor Head ‘400’ payment the CPC system will not be able to reduce / square off the arrear by the extent of the adjustment challan. Therefore, it is critical for the adjustment RO to be deposited at RBI / SBI with the assessee PAN and AY mentioned clearly.
p) Can the AO combine arrears of various AYs and upload?
Ans: No, the AO has to enter separately for each AY and for different types (IT, FBT etc).
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q) Will CPC system compute 220(2) interest for arrear demand from date of demand notice for each entry?
Ans: No, it is the responsibility of the AO to compute 220(2) interest till date of upload of arrear demand or date of calculation of 220 (2) which is specified by AO at the time of upload whichever is later. The CPC system will calculate 220(2) as per law and various CBDT instructions only from the date of upload of arrear into the CPC system or date of calculation of 220 (2) which is specified by AO at the time of upload whichever is later.
r) Will CPC system accept arrear demand without PAN?
Ans: No, PAN is a mandatory field. Therefore, it is suggested that the AO should maintain a separate record of all such arrear demands where there is no PAN. Such demands should be collected or reduced by rectification or verification of collection, as the case may be, to slowly eliminate all such entries. Alternatively, the correct PAN should be identified and then the arrear record should be updated into the CPC system.
s) Is the CPC arrear accounting system a substitute for the A&DCR and can the manual A&DCR be done away with?
Ans: The primary objective of the CPC arrear accounting system is to provide a mechanism to the AO to intimate the CPC about arrears of any taxpayer mainly for the purpose of adjustment of such arrears against any refund arising for that taxpayer in CPC in case of processing of any electronically filed return or a paper return of Karnataka or Goa. The CPC has concurrent jurisdiction for the purpose of processing of such returns under section 143 (1).
Therefore, the CPC arrear accounting system is NOT a substitute for the A&DCR and the A&DCR has to be mandatorily maintained and updated each year by the AO as per CBDT instructions. The CPC arrear accounting system does not contain all the fields / columns of the A&DCR since as mentioned above the objective is different. However, the fields uploaded by the AO would be available in the CPC staging database.
However, the AO can periodically update and reconcile the CPC arrear accounting system with the manual A&DCR so that an accurate electronic repository of all arrears can be established.
t) Is the CPC arrear accounting system, a substitute for IRLA?
Ans: IRLA is a part of ITD application and has a different purpose. However, if ALL AOs systematically and accurately transfer ALL arrear entries into CPC arrear accounting system (subject to the limitations as mentioned in points l) and r) above), then an accurate electronic repository of all arrears can be established.
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u) What would happen if AO does not upload the arrear demand to CPC at all or within the time specified?
Ans: All refunds arising in CPC are automatically issued through the refund banker. If any arrear demand for a taxpayer is uploaded by the time refund is processed, then the refund would be adjusted against the arrear demand.
If the arrear demand is not uploaded to the CPC arrear accounting system by the time a refund is under process, then it shall be assumed that there no arrear for that taxpayer and the refund will be issued. However, if the arrear is uploaded after issue of the refund then the arrear can be adjusted only against any future refund that may be determined at CPC.
v) Will the arrear demand be adjusted if the refund arising for the taxpayer at CPC is below Rs 5,000?
Ans: Yes, in case of any refund below Rs 5,000, if any arrear demand is already uploaded in CPC then the demand would be adjusted against that refund.
w) Can the AO reduce the arrear demand uploaded by him after adjustment of the demand against a refund is already executed at CPC?
Ans: No, at the moment this is not possible, since it involves a complex reversal of accounting entries, rectification of the order under which refund was issued and also reversal of 220 (2) that may have been computed at CPC. Since this scenario is very complex, the CPC system would reject any such reduction of demand that has already been adjusted. Therefore, the AO has to be extremely careful while determining the final and accurate arrear demand position for each taxpayer and only thereafter should he upload the arrear demand to CPC. The excess adjustment if any done by CPC need to be refunded to the assessee by the AO in pursuance of the instructions of DGIT(S) in F.No.DGIT(S)/Misc./2011-12 dated 19.10.2011 and CBDT Circular No. 4 of 2012 in F. No. 225/48/2012-ITA-II dated 20 June 2012.
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Annexure D
Status of Demand Uploaded on CPC Portal will be available at the following path:
AST > Processing > CPC Interface > Status of demand uploaded by AO on CPC Portal
In the screen of Demand adjustment details first table pertains to refunds adjusted against
demands in CPC. The table below delineates other 400 challans applied as collections as
under:
i. 400 Challans with challan status “NOT APPLIED BY CPC’’ indicates that
the challans were available on the system prior to the date of upload of
demand by AO and it is assumed that such collections have already been
considered by AO before uploading and therefore not applied by CPC to
reduce demand.
ii. 400 Challans with challan status “APPLIED” indicates that the challans
have been applied to or adjusted against demands of that PAN-AY of the
challan.
iii. After uploading of demand (say IRLA demand prior to 01.04.2010) ,if any
superseding order such as Appeal effect/ Rectification has been passed
through AST quoting the DIN for arrear demand allocated from CPC on
the uploaded demand entry on Portal, then uploaded entry would be
marked as “Cancelled”. The revised demand generated on AST would
be available on CPC-FAS and IRLA.
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Case I
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Case II
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