1

Receipt & Payment Rule 1983

1.It deals with rules regulating the
custody of:
a) Consolidated Fund of India
b) Contingency Fund of India
c) Public Account of India
2. It contains 3 functions:
i) Receipts,
ii) Custody and
Iii) Payment
of the above funds
(Preamble)

2
 Effective date
 It is effective from 01-06-1983
 It is called “Central Government Receipts &
Payment Rules 1983”
 These rules applies to all transactions other
than Pensionary benefits pertaining to
Central Govt. and U/T
 Pensionery Benefits are governed by Central
Treasury Rules

(Rule 1)
3
 Contents
Contents
1. Part I : Preliminary & General Principles (Rule 1 to 17)
2. Part II : Receipt of Govt. Revenues & crediting into Govt.
Account (Rule 18 to 27)
3. Part III : Withdrawal from Govt. Account
a) Section: 1- General principles (Rule 28 to 62)
b) Section: II- Personal claims of Govt. servant
(Rule 63 to 95)
c) Section: III- Contingent charges (Rule 96 to 123)
d) Section: IV – Purchase of Stores (Rule 124 to 129)
e) Section: V – Works Expenditure & Misc. Payment
(Rule 130 to 157)
f) Section: VI – Loans & Advances (Rule 158 to 166)

Contd…

4
 Contents…
4. Part IV : Public Debt, GPF, Deposits etc.
a) Section - I: Public Debt (R. 167-170)
b) Section –II: Provident Fund & other
(R.171 – 181)
c) Section-III: Deposits (R-182 to 199)
5. Appendix:
I: Agreement with R.B.I
II: Instructions rounding off transactions
III: Procedure of payment of loans &
interest given to Public Sector and other
parties

5
 Some Definitions
1. Accredited Bank: The Bank which is
appointed to transact the business of
the Government pertaining to a
Ministry or Department or Union
Territory [2 (b)]
2. CDDO: Drawing and Disbursing officer
functioning under a Ministry or Dept.or
U/T, who is authorized to withdraw
money for specified type of payments
against an assignment account from an
accredited bank [2(g)]

6
 Some Definition……
Consolidated Fund of [Art. 266(1)]

1. ALL REVENUES RECEIVED BY WAY OF TAX

(INCOME TAX,CENTRAL EXCISE, CUSTOMS ETC.)
2. LOANS RAISED BY GOVERNMENT BY
TREASURY BILLS
3. INTERNAL & EXTERNAL BORROWINGS

Rule 2 (k)
7
 CONTINGENCY FUND OF INDIA
Article 267(1)

1. IT IS AN IMPREST KEPT BY PRESIDENT

2. TO MEET URGENT & UNFORESEEN

EXPENDITURE

Rule 2 (j)

3. IT SHOULD BE RECOUPED SOON 8

 PUBLIC ACCOUNT
Art 266(2)

ALL PUBLIC MONEY (GPF, DEPOSITS ETC)

GOVERNMENT ACTS AS A BANKER

ALL MONEYS OTHER THAN CREDITED/DEBITED

TO CONSOLIDATED FUND OF INDIA
NO AUTHORISATION OF PARLIAMENT IS REQUIRED

Rule 2(p) 9
 Structure of Government Account

Consolidated Public Account

Revenue. Capital Loans &

advances Debt (8001-8235)
Receipts
(0020-1606) Deposit (8336-8451)
Payments &
Exp. Recoveries
(6001-7999) Advances(8550-8554)
(2011-3606)

Suspense(8656-8689)

Receipts Contingency Remittances(8781-8797)

(4000)
Cash Remittances(8781-
Exp. Recoupment 8797)
(4046-5475) (8000)

10
 Location of money credited
• Reserve Bank of India
• Central Treasury, the cash business of which not
conducted by bank

NB: Balances in Small Coin Depots, Rupee Coins,

Balances in Mint and Cash balance held in Post Offices
or other Departmental Offices are not reckoned as part
of General Cash Balance of Govt.

(Rule 3)

11
SYSTEM OF KEEPING
GOVT. MONEY
 CASH BASIS

 NOT ON ACCRUAL BASIS

[GFR 68]

12
 WHERE TO KEEP MONEY
 GOVERNMENT BANKER : R.B.I.
 INITIALLY, MONEY CAN BE
DEPOSITED IN THE ACCRIDITED
NATIONAL BANK ALSO
FOUR PRIVATE BANKS ALSO
AUTHORISED TO OPERATE
GOVERNMENT BUSINESS

13
 WHAT TO DO WITH MONEY
RECEIVED ?
• CREDIT IMMEDIATELY INTO THE
BANK
• NOT TO UTILIZE THE RECEIPTS FOR
DEPARTMENTAL EXPENDITURE
• CHALLAN TR 6 (GAR-7) SHOULD BE
USED
• FULL CLASSIFICATION SHOULD BE
GIVEN
[R &P RULES 6]
14
 RECEIPTS FOR EXPENSE -
EXCEPTIONS
• POST MASTERS AS PER P&T MANUAL
• DEPOSITS IN CIVIL COURT CAN
SPEND FOR REFUND OF SIMILAR
DEPOSITS
• PWD FOR CURRENT WORKS
EXPENDITURE
• FOREST DEPARTMENT

15
 RECEIPTS FOR EXPENSE -
EXCEPTIONS
• JAIL : CASH FOUND ON PRISONERS
TO REFUND SIMILAR DEPOSITS
• RAILWAY RECEIPTS AS PER RAILWAY
MANUAL
• NATIONAL LIBRARY, CALCUTTA OR
ANY OTHER GOVERNMENT LIBRARY-
REFUND OF SECURITY DEPOSIT OF
MEMBERS
16
 RECEIPTS FOR EXPENSE -
EXCEPTIONS
☺BOTONICAL SURVEY OF INDIA TO PERMIT
THE REFUND TO INDENTORS OF QUININE
AND PURCHASERS OF SEEDS AND PLANTS
OUT OF THE DEPOSIT
☺ SURVEY OF INDIA – REFUND OF EXCESS
COST OF MAPS ETC. COLLECTED.
☺ ALL INDIA RADIO
☺ AND MANY MORE……….
[R&P Rule 6(2)]
17
CAN PUBLIC DIRECTLY REMIT
REVENUES INTO BANK ?
NORMALLY, ALL REVENUE SHOULD BE
REMITTED TO DEPARTMENTAL
OFFICER
HOWEVER, CBDT/CBEC DEPARTMENTS
ALLOW DIRECT REMITTANCES BY THE
PUBLIC INTO NOMINATED
BANK/BRANCH
[RULE 7 & 18 OF R&PR]
18
 ROLE OF RECEIVING BRANCH

• RECEIVE MONEY SUPPORTED BY CHALLANS DULY

CLASSIFIED
• REMIT MONEY INTO RBI IMMEDIATELY
• PREPARE SCROLL (RECEIPT & PAYMENT) AND
SEND TO PAO/DDO
• PREPARE D.M.S. AND SENT TO PAO
• BANKS ARE RE-IMBURSED AND COMMISSIONS
PAID BY RBI AFTER MONIES PUT THROUGH
[RULE 8 OF R&PR & OTHER ORDERS]

19
 CAN MONEY WITHDRAW & KEEP IN
DEPOSIT ?
 NO, NO.

 EXCEPT
WITH THE SPECIAL
PERMISSION OF THE GOVT. NO
MONEY CAN BE WITHDRWN FROM
BANK AND KEEP UNDER DEPOSIT

[RULE 9 R&P RULE]

20
 WITHDRAWAL OF MONEY
 MONEY CAN BE WITHDRAWN ONLY BY PRESENTING
BILL IN THE SPECIFIED FORM & AS PER RELEVANT
RULES
 MONEY SHOULD NOT BE WITHDRAWN UNLESS THE
CLAIM FOR WITHDRAWAL COMPLIES WITH THE
PROVISION OF RELEVANT RULES
 BILL SHOULD BE SUBMITTED TO PAO/CDDO OR
ANY OTHER NOMINATED OFFICER
 NO CHEQUE SHOULD BE DRAWN UNTIL IT IS
INTENDED TO BE ISSUED SOON AFTER
(Rule 11)

21
1. A CDDO can withdraw money for the purposes
as prescribed by CGA
2. They are authorised to draw money for:
a) Salary
b) TA
c) LTC
d) Ordinary Office Expenses
e) GPF advances
(Rule 11(2) of R&P Rules and Chapter 3 of Civil
Accounts Manual)

22
 First Salary Payment
1. A newly appointment official:
Supported by Appointment order,
Medical Fitness Certificate
2. Official transferred: Last Pay Drawn
Certificate

(Rule 11(4) & 80)

23
1. The Officer supplied with Funds for Expenditure
is responsible for making the payment to the
persons entitled to receive them
2. He is responsible to render accounts to Accounts
Officer
3. He is responsible to make any recovery
immediately, pointed out by Accounts Officer

(Rule 12)

24
 CASH BOOK
• WHAT IS A CASH BOOK?
– CASH BOOK IS NOTHING BUT A RECORD OF ALL CASH
TRANSACTIONS

• WHY WE NEED TO MAINTAIN CASH BOOK?

– THE GOVT. DEPARTMENTS DEALS WITH CASH AND NON CASH
TRANSACTIONS. NON CASH TRANSACTIONS ARE WATCHED
THROUGH VARIOUS REGISTERS SUCH AS CHEQUE REGISTERS,
REGISTER OF VALUABLES, CHEQUE ISSUE REGISTER, ETC. WHEN
DISBURSEMENTS ARE MADE IN CASH, WE NEED TO KNOW AND
KEEP RECORD HOW MUCH CASH IS DISBURSED. ALSO ALL
RECEIPT BY WAY OF CASH AS WELL AS OTHER FORMS OF
CHEQUES,DD ETC ARE ALSO IS TO BE RECORDED IN CASH BOOK.
HENCE WE NEED TO MAINTAIN A CASH BOOK.

• WHO MAINTAINS IT?

– NORMALLY, THE CASHIER WHO ACTUALLY DISBURSE CASH
MAINTAIN THE SAME. HOWEVER, THE ULTIMATE RESPONSIBILITY
FOR ITS CORRECTNESS RESTS WITH THE DDO/PAO IN CHARGE
OF CASH.

09/02/20 25
 CASH BOOK
• IS THERE ANY DIFFERENCE IN THE CASH BOOKS OF
COMMERCIAL ORGANISATIONS AND THAT OF GOVT
DEPARTMENTS?

YES. THE COMMERCIAL ESTABLISHMENTS MAINTAIN THE CASH

BOOK WITH BANK / DISCOUNT COLUMNS WHEREAS IN THE
GOVT. ONLY CASH COLUMN IS OPERATED ON ACTUAL CASH
TRANSCATION.

THERE ARE TWO SECTION IN A CASH BOOK

1. RECEIPT SIDE
2. PAYMENT SIDE

THE RECEIPT SIDE ACCOUNTS ALL THE CASH RECEIPT,SELF

CHEQUES AND THE CHEQUES AND DDs RECEIVED

THE PAYMENT SIDE ACCOUNTS ALL THE PAYMENT MADE OUT.

09/02/20 26
 INSTRUCTIONS FOR HANDLING CASH

1. DDO SHOULD ENSURE GOVERNMENT MONEY IS KEPT IN

STRONG TREASURE CHESTS WITH TWO LOCKS OF DIFFERENT
PATTERNS. KEY SHOULD BE KEPT WITH DIFFERENT PERSONS
2. DUPLICATE KEYS SHOULD BE KEPT IN SEALED COVERS WITH
OFFICERS OF HIGHER RANK. HE SHOULD MAINTAN DUPLICATE KEY
REGISTER

3. CASH BOOK MUST BE MAINTAINED IN FORM NO.GAR 3. IT

SHOULD BE BOUND AND ITS PAGES MACHINE-NUMBERED
AND KEEP RECORD OF THE NO. OF PAGES.

4. ALL MONETARY TRANSACTIONS SHOULD BE ENTERED IN THE

CASH BOOK. AS SOON AS THEY OCCUR AND ATTESTED BY THE HEAD
OF OFFICE

5. NO A/C PAYEE CHEQUES SHOULD BE ENTERED IN

THE CASH BOOK. A SEPARATE REGISTER IS MAINTAINED FOR HAT
PURPOSE

27
 INSTRUCTIONS FOR HANDLING CASH
6. RECEIPTS PAID INTO GOVERNMENT ACCOUNT IN THE BANK
MUST BE COMPARED WITH BANKS RECEIPTS ON THE PAY-
IN-SLIP/CHALLAN
7. RECEIPT SCROLL NO. SHOULD BE ENTERED IN CASH BOOK

8. ANY ERASURE OR OVERWRITING OF AN ENTRY ONCE MADE

IN THE CASH BOOK IS STRICTLY PROHIBITED.

9. IF CORRECTION IS REQUIRED, STRIKE THE WRONG ENTYRY

AND MAKE NEW ENTRY UNDER ATTESTATIPON

10. HANDLE GOVERNMENT AND NON-GOVERNMENT MONEY IN

SEPARATE BOOKS

11. THE EMPLOYMENT OF PEONS TO FETCH OR CARRY CASH

SHOULD BE DISCOURAGED.

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 INSTRUCTIONS FOR HANDLING CASH
12. CASH BOOK SHOULD BE CLOSED REGULARLY AND VERIFIED
BY DDO OR SOME RESPONSIBLE SUBORDINATE OTHER THAN
THE WRITER OF THE CASH BOOK AND INITIAL IT AS
CORRECT.

13. AT THE END OF EACH MONTH, THE DDO MUST VERIFY THE
CASH BALANCE IN THE CASH BOOK AND RECORD A SIGNED
AND DATED CERTIFICATE TO THE EFFECT

14. 13. THERE MUST BE A SURPRISE CHECK OF CASH BY SOME

RESPONSIBLE OFFICIAL OTHER THAN THE OFFICER
HANDLING THE CHARGE OF CASH, TO BE NOMINATED BY
THE HEAD OF OFFICE.

09/02/20 29
 INSTRUCTIONS HANDLING CASH

15. CLOSING BALANCE DETAILS

OPENING BALANCE _______
SELF CHEQUES _______
CASH RECEIPTS _______
CHEQUE RECEIPTS _______
LESS:PAYMENTS _______
CLOSING BALANCE _______
• “CERTIFIED THAT THE CASH BALANCE HAS BEEN PHYSICALLY
VERIFIED BY ME TODAY_______ AND FOUND TO BE RS.______
WHICH TALLIES WITH THE CLOSING BALANCE AS WORKED
OUT IN THE CASH BOOK”
Signature
(R. 13R& P Rules )
09/02/20 30
FORM OF MONEY
LOCAL CHEQUE
CASH
DEMAND DRAFT
POSTAL ORDERS
MONEY ORDERS
CUSTOMS REVENUE STAMPS
CENTRAL EXCISE STAMPS
[ RULE 18 OF R&PR & CBEC 31
MANUAL]
 RECEIPT OF MONEY
• FORMAL RECEIPT SHALL BE ISSUED WHEN THE
CHEQUE/DD CLEARED
• FOR CASH ETC. RECEIPT SHOULD BE ISSUED
IMMEDIATELY
• RECEIPT FORM GAR-6
• WHERE THE MONEY IS REALISED THROUGH
RECOVERY FROM BILL, RECEIPT WILL BE
ISSUED ONLY ON DEMAND
• ALL RECEIPT MUST BE WRITTEN IN WORDS AND
FIGURES
• NO DUPLICATE RECEIPT IS TO BE ISSUED;
INSTEAD ISSUE A CERTIFICATE
[RULE 18 & 21,23 ]
32
 DATE OF RECEIPT
⌂DATE
WHEN THE CHEQUE/DD TENDERED TO THE BANK :
ON WHICH CLEARED AND SCROLLED
⌂DEPARTMENTAL
WHEN THE CHEQUE/DD TENDERED TO
OFFICER: THIRD WORKING DAY
AFTER ITS PRESENTATION
⌂IF CHEQUE/DD/M.O. SENT BY POST: THE DATE ON
WHICH THE COVER CONTAINING IT IS PUT INTO
THE POST
⌂ [ IF CHEQUE/DD IS WRITTEN N.P.B. THEN THE
PAYMENT DATE WILL BE THAT NPB DATE]
(Rule 20)

33
 TRANSFER OF CREDIT

• PROCEDURE FOR AFFORDING

TRANSFER CREDIT WHEN DEPARTMENTAL
RECEIPTS ARE UTILIZED FOR PAYMENT:-
“GROSS RECEIPTS AND PAYMENT
MADE THEREFROM SHALL BE ENTERED. IF
THE RECEIPT IS IN EXCESS OF PAYMENTS,
BALANCE SHOULD BE CREDITED INTO
BANK”

(Rule 25)
34
 Payment of Examination Fee

1. Fees payable by candidates for

examination conducted by UPSC/SSC
is payable by crossed Postal Order or
any such negotiable instruments as
specified.
2. Indian Mission abroad will receive such
instruments from candidates residing
outside India
(Rule 27)
35
WITHDRAWAL OF MONEY
 ONLY THROUGH PRESENTATION
OF BILL
 AONLY
BILL BECOME A VOUCHER
WHEN IT IS RECEIPTED
AND STAMPED “PAID”
 ALL BILLS EXCEPT SALARY
SHOULD BE PREPARED IN
DUPLICATE
[RULE 28]
36
 Bill
 A bill is:
1. Statement of claims against the
Government
2. It contains specification of the
nature and
3. Amount of the claim, either in
gross or by items and
4. Includes such a statement
presented in the form of a simple
receipt
(Explanation under Rule 28)
37
 Claims of Suppliers
A claim from outsider of Govt. for supply of
items/work done etc. should be submitted
through Head of Office, unless there are special
provision made by Govt.(Ex. DGS&D Payment)
He should complete the formalities of verify the
correctness of payment and make the payment to
party.
If supplier executes a power of attorney, the
payment can be made to bank
Income tax (vide Section 194 C) should be
deducted from payment

(Rule 30)
38
 Permanent Advance
• It is an imprest held by Head of Office
sanctioned by Competent Authority
• It is meant for meeting the urgent day to
day expenditure
• Expenditure incurred should be recouped
• Contingent expenditure up to 2000/- may
be disbursed from P.A (R.99)
• Refund of Revenue up to 100/- can be
made from PA (R.140)
(Rule 31,99,40 & GFR 291) 39
 Arrear Claim
• Any claims against Govt. which are not
preferred within 2 years (or as specified by
the Govt. in special cases) should not be
passed without investigation of arrears (Rule
32 of R & P Rules)
Some Exemptions:
1. TA claim one year (SR.194 A)
2. LTC claim within 3 months(Rule 14 of LTC)
3. Pension: 5 years (Treasury Rule 369)
4. DGS&D Contractors bill 3 years (Supply
Account Manual) 40
 Preparation of Bills
1. Printed forms
2. If it is in Regional Language, an abstract in English
duly signed is to be affixed
3. Separate salary bill for establishment charges
debitable to different heads, Cash payment &
Cheque payment
4. Salary bill of Permanent & Temporary in separate
Section
5. All deductions should support with scheduls
6. All bills must be filled and signed in ink
7. Bill should be rounded off as per rules
8. Total amount should be written in words and
figures
9. All correction/alterations of the amount in the bill
should be attested
Contd…. 41
 Preparation of Bills….
8. Avoid Erasures & overwritten in the bill
9. Full classification, whether “Charged,
Voted, Plan, Non-Plan, Capital, Revenue
10. If the bill presented under any special
order, a copy of the order is supplied
11. Note in bill the date of payment
12. Spaces left in money column or columns of
particulars should be covered by oblique
lines
13. Indication of “Below Rupees” in bill
14. Signed in ink by the Authorized Officer
42
 Preparation of Bills….
15. A Bill Register is to be maintained in GAR-9
16. Facsimile Signature only in
Telephone/Electricity bill
17. Unsigned bill generated through computer by
Indian Airlines can be a sub-voucher
18. An Head of Office can delegate any G.O to sign
the bill
19. Bills (except salary bill) be prepared in
duplicate
20. Stamp Receipt for over Rs. 5000/-
(Rule 33, 34, 35 & 36& 66)
43
 Stamp Receipts
1. Receipts (net) for payments exceeding Rs.5000/-
should be stamped (Section 3- Item 53- Schedule I of
Indian Stamp Act)
2. Receipts for payment made outside India, should be
govern the rules of the place where payment is made.
3. A single receipt given by payee in acknowledgement of
several payments, either in cash or cheque, on one
single occasion, is a valid quittance

(Rule 37 & Note 2 under R.56)

44
 Types of Cheques
 Three verities of Cheques:
1. A – Payment to Officials for their
claims, Contractors, Suppliers
Payable to or order)
2. B –Cheques paid to Govt. officials for
disbursing cash (Only–Not
transferable)

3. C – Inter-departmental adjustments (For

credit to Govt. Account- not payable
in cash

(Rule 44)

45
 Procedure for obtaining Cheque books
1. The Accounts Officer will place an indent
with India Security Press, Nasik
2. He is responsible to supply cheque books
to CDDO
3. AO/CDDO will notify the details of cheque
that brought into use

(Rule 38 & 39)

46
 Safe Custody of Cheque Books
1. On receipt, it should be examined and
counted the number of leaves.
2. Record a certificate of count in each cheque
book
3. Cheque Books should be kept under personal
custody of DDO
4. Stock of Cheque Books should be entered in
a separate register
(Rule 40 & instructions in CAM)

47
 How to write Cheque
1. Amount of Cheques should be written with figures
and words
2. All chques shall have written above “Under Rupees”
- A little excess
3. If cheque is for 700/- say under rupees 800/-; if for
Rs.80/- say under Rs.90/-
4. Cheque can be drawn for any amount even for Rs.1/-
5. Cheques drawn for over 10 lakhs & above should
have two signatories
6. All corrections in cheques should be attested by
drawing officer
7. All salary cheques over 1000/- and non -salary
cheques over 500/- should be crossed ,4448

(Rule 42, 43,44)

 Validity of cheques

 Three months after the month of issue

(Rule 45)

49
 Issue of Fresh cheques in lie of lost/Time
Barred
• Revalidation of cheque is not permissible
• Issue fresh cheque in lieu of lost or time barred cheque
• Get back the time barred cheque
• Verify the Cheque Payment Register/Scrolls to verify the payment
of lost cheque
• Issue stop payment instructions to bank if currency exists of lost
cheques
• Get a stop payment certificate from bank
• Get an Indemnity Bond from private parties
• Classification: (-) Credit to 8670 Cheques & Bills & Credit to 8670
Cheques & Bills
• If fresh cheque issued in lieu of lost one, which is (lost one) found
enchased later on, the amount should be kept under “8658-
Suspense-Suspense Account (Civil) –Cheque Cancelled but paid.
Cheque must be removed & kept under personal custody of DDO
and matter investigated.
(Rules-46 to 48)

50
 Letter of Credit (LOC)
• A quarterly assignment letter from Accounts
Officer to accredited bank allowing CDDO to
withdraw the amount
• AO issues the LOC on the basis of budget
• Unspent balance of a quarter carry forward
to next quarter
• Balance available on 31st March will not be
carried forward
• Cheque issued up to March but encashed in
April/May etc. will be debited against LOC
upto March.
(Rule 50)
51
 Specimen Signature of DDO
• Specimen signature of officer authorized
to sign bill should be sent to AO
• DDO should send specimen signature
duly attested by him if he authorize new
incumbent to sign the bill
• AO before passing any bill should
compare the signature already registered
(Rule 51 & 52)

52
 Special Seal Authority
• Accounts Officer will issue Pension
Payment Order (PPO) under Special
Authority

(Rule 53)

53
 Sub-Voucher
• Every bill (except Salary bill) preferred
should support by Sub-voucher indicating
full details of payment in order to classify the
expenditure under proper head of account
• Every voucher should bear the pay order by
DDO in words and figures
• All paid vouchers should be stamped “Paid”
• All sub-vouchers must be cancelled so that
they cannot be used further

(Rule 56 & 59)

54
 Every GS should promptly comply with the
audit objections conveyed by Accounts
Officer, Internal Check or Statutory Audit
Officer
 When AO disallows any payment as
unauthorized , DDO is bound to disallow the
expenditure without hearing the payee
 Recoveries may not ordinarily will be made
exceeding one-third of pay
(Rule 62)

55
 Due date for payment-Salary
1. Last working day of a month. If the
last working day is bank holiday-then
last bank working day
2. In March, Salary will be paid only on
first working day of April
3. Industrial Establishment – As per
their specific date fixed

(Rule 64)
56
 Drawl of Salary for Part of a Month
1. When a GS proceeds on transfer, deputation or
leave or vacation :
(i) to or from a place outside India or to
place in India or
(ii) from any place outside India to
another place outside India
2. When a G/S transfers outside account circle or
within the account circle when change of DDO
3. When a GS quits the service
4. When a GS transfer on deputation/FS
5. On the occasion of local importance & following
local practice
(Rule 65)

57
 Misc. instructions for salary bill
1. Absentee statement (Rule-67in GAR 20)
2. Increment Certificate ((Rule 68 in GAR 21)
3. Affixing prescribed certificate (Rul.69)
4. Fund deductions (Rule 70)
5. Income Tax deductions (Rule 71)
6. House Rent/License fee (Rule 72)
7. Recovery ordered by Accounts Officer (Rule
71)
8. Attachment of debt by Court of Law decree
(Rule 74)
9. Cost of Remittance to Court (Rule 78)
10. Deduction of Professional Tax (Rule 79) 58
 Misc. instructions for salary bill….
10. First payment of salary – required documents Rule 80)
11. Issue of LPC-GAR 2 (Rule 81)
12. Drawl of arrears bill –Due & Drawn Statement (Rule
83)
13. Payment of Salary through Agents against Power of
Attorney (Rule 85)
14. Payment of Over Time (Rule 88)
15. Arrear Bill – Presentation of supplementary bill (Rule
89)
16. Acquaintance ( Rule 91)
17. Quittance if payment credited into bank
directly(Exemption under Rule 92(1)
18. Remittance of cash un-disbursed over three
months( Rule 92 (2)
19. Last payment of Pay and Allowances (Rule 93)
20. Pay & Allowances in case of death of payee (Rule 94)
21. Arrears of pay & allowances payable after death of GS –
over 10000 by execution of bond (Rule 95)

59
1. When the pay of GS is attached by Court of Law, it is
the duty of the DDO to deduct the amount and remit
it to the court.
2. If the GS is insolvent, the Court Receiver is
responsible for the recovery and distribution among
the creditors

60
 Attachments
1. Attachment for maintenance
2. Attachment for debt

61
 Salary-Exempt
1. For Debt:
a) Salary is exempt for first 1000
b) and 2/3 of the reminder for
execution of court decree
2. Maintenance
1/3 of salary
NB: Salary means only Pay + GP
(R.74 of R&P Rules)
62
Conditions for attachment
• Where such salary or portion has been
under attachment continuously or
intermittently for 24 months, such
portion exempt from attachment for
further period of 12 months.
• If the further attachment is in execution
of one and the same decree, after the
attachment for a total period of 24
months, it is finally exempt from
attachment in execution of that decree
63
 Exemption of Allowance

• The following Allowances are exempt

from attachment:
1. All kinds of Traveling Allowance
2. All kinds of conveyance allowances
3. All allowance for Uniforms
4. All allowances for Rations

Contd…
64
 …Exemption of Allowance

5. Allowances for higher cost of living in

localities of expensive
6. Hill Allowance
7. Dearness Allowance
8. Foreign Allowance
9. Foreign Allowance in case Diplomatic
Mission
10. Children Education Allowance
Contd…

65
 Exemption of Allowance

11. Reimbursement of Medical Expense

12. Dearness Pay if any
13. Subsistence Allowance paid in
suspension

66
 Formula
• Debt attachable (other than decree for
maintenance):
= (x –y)-1000
3
X= Gross amount earned by G/s
Y= Allowances exempted

(Rule 74 of R & P Rules)

67
Duties & Responsibilities of DDO

1. If new Attachment order against a G/S is

received before previous order of attachments
is fully recovered, further recovery will be
made within the maximum limit prescribed.
2. If any attachment order has the result of
increasing the amount beyond the maximum
limits prescribed, DDO shall return the
attachment order to Court with details
Contd….

68
 …Duties & Responsibilities of DDO

3. Amount recoverable should be recovered

from salary/leave salary
4. Amount recovered should be remitted to
court immediately.
5. Cost of remittance should be deducted
from the recovered amount and only net
to be sent to court
(Rule 75 to 78 of R & P Rules)

69
 Problem : 1
• An officer was drawing pay 25560 + 5400 GP in the Pay band 9300-
34800+GP 5400. In addition, he was DA 8359/-(27%), TA:-4064/-,HRA-
9288.Court attachment order for first time in his service for recovery
of Rs. 3,00,000/-(not for maintenance) was received in August
2009.Calculate the amount for each month and the total amount
recoverable

• Solution:
1. Emoluments: 25560+5400=30960
2. Exempted: All allowances
3. Deduct : first 1000 = 30960-1000=29960
4. Deduct 2/3 of 29960 : 19973
5. Reminder: 29960-19973=9987
6. A) Amount recoverable from August 09 to 30th June 10:
9987 x 11 = 1,09,857
7. Pay on 1.7.10: (increment): 930+30960=31890
8. B) Amount attachable for next 12 months: 31890-1000 x 1/3:10630 x
12=10297 x 12=1, 23,564
9. C) Pay on 1.7.11 & Recovery : 960 + 31890=32850-1000 x 1/3=10617
10. Total recovery for 24 months: 1,09,857 +1.23.564 +10,617=2,44,038
11. Under 60(1) of Code of Civil Procedure only 24 months can be
recovered
70
 Problem :2
• Calculate the amount recoverable on 30.9.2009 from the
salary of G/S. Court attachment order (non-maintenance)
is received for 35000/- on 10.9.2009. A sum of Rs. 1500/
p.m. was being attached from his salary for a period of 24
months till December 2008. Pay Particulars:
Pay + GP 24620,DA 27%: 6647,HRA : 6786,TA : 2032
Solution:
• Amount attachable: 24620-1000x1/3=7873
• Less 1500 (portion already attached for 24 months) 7873-
1500=6373 (for further 12 months)
• Recovery:6373 x 4 (Sept to Dec.09) =25492
• Recovery: 7873 x 1 (Jan.10) = 7873
• Balance recovery: 1635 (in Feb.10 )= 1635
• Total =35000

71
 Contingent
Contingent Charges
Charges

Contingencies and contingent means all

charges incidental and other expenses,
(including on stores) which are incurred
for the management of office or technical
establishment, like Lab; Workshop; Store
Depot etc.
Charges on petty construction & repair
works met from contingencies
(Rule 96 & 131)
72
 Types of Contingencies
1. Contract Contingencies
2. Scale-Regulated Contingencies
3. Special Contingencies
4. Countersigned Contingencies
5. Fully Vouched Contingencies

(Rule 96)

73
 Contract Contingencies
• This contingency is for which a lump sum
is paid annually at the disposal of DDO for
expenditure without further any sanction.
They generally consist of annual incidence
charges

(Rule 98 (i)

74
 Scale-Regulated Contingencies
• Contingent charges as regulated by
scales laid by Govt. – Rewards for
destruction of wild animals

(Rule 98 (ii)

75
 Special Contingencies
• This contingency charges – whether
recurring or non-recurring cannot be
incurred without special sanction of
superior authority

(Rule 98(iii)

76
Countersigned Contingencies

This charges is required

countersignature of Controlling
authorities before they can be admitted
as legitimate expenditure

(Rule 98(iv)

77
Fully Vouched Contingencies
• It is popular contingency charges
• Not required any special sanction nor
counter signature
• It is incurred by Head of Office on his own
authority
NB: petty sub-vouchers up to 500/- need not be
forwarded to Accounts Officer (Note 1 under
Rule 111)

[Rule 98(v)]
78
 Contingent Register
 Form No. GAR 27
 Each entry should be initialed by an Authorized
Officer
 It should be maintained Sub-head wise
 Head wise Appropriation (Budget allocation)
should be noted
 Separate Register for each class of Contingent
charges is desirable
 Date of payment must be entered
 Progressive total should be struck at the end of
the month in order to watch the progress of
expenditure.
(Rule 110)
79
 Stores
 Stores are defined that all articles and
materials:
 Required for the public service
 Stores coming into an office’s possessions
for various purposes which are budgeted for
and classifiable under heads of expenditure
as:
“works, tools, plant and machinery,
equipment, material and supply”
(Rule 124)

80
 Purchase through DGS&D
 DGS&D is Central Purchase Organization
for Central Govt. functioning under Ministry
of Commerce
 Department should normally purchase
stores against Rate Contract/Acceptance of
Tenders finalized by DGS&D
 If purchase is made by any Department, the
payment shall be arranged by PAO, Dept. of
Supply and not by AO of Dept.
 DOS will seek settlement of amount through
Departmental procedure
(Rule 127 & DGS&D Manual)

81
 Payment for Purchase Outside
India through HCI
• Payments for all stores ordered through
India Supply Mission, London/Washington
will be arranged by High Commission of
India, London or Indian Embassy,
Washington
• Debit will be raised through PAO, Min. of
External Affairs

82
Direct Purchase from Abroad
 Where heavy payments are involved, a
Letter of Credit will be opened through
accredited bank of any other bank( as
modified now) in favor of foreign supplier
or
 Telegraphic transfer by bank
 If the payment is not huge, A DD in foreign
currency can be obtained from accredited
bank and sent to firm abroad through DDO

(Rule 129)

83
 Works Expenditure & Miscellaneous
Payments

This expenditure is connected with

construction, repair & maintenance of
building, roads and other works of public
utility carried out by PWD, Military
Engineering Service, or by any other Govt.
Department

(Rule 130)
84
 Labor Payment
1. Wages will be drawn on “Muster Rolls” showing names,
number of days worked, Amount due to each.
2. Daily attendance, absence, fines, if any must be
recorded
3. Muster Roll payment must be witnessed by highest
officer available, who should certify the payment to right
person
4. Unpaid amount detailed separately.

(Rule 132 & 133)

85
 Refund of Revenue
1. Refund of revenue can be drawn only on demand
from entitled persons
2. Refunds of Customs duties/Central
Excise/Income Tax/Corporation Tax being done
according to Departmental Procedure.
3. Refund of Revenue should be claimed in bill
GAR-33
4. Examination fee received by UPSC/SSC can also
be refunded by presenting claims to their PAO
(Rule 142, 143, 144)
86
 Payment to Work Charged
Establishment

Payment of work charged establishment will

be drawn in the same manner for regular
employees, in usual bill form-GAR 13

(Rule 134)

87
 Payments to Contractors or Local
Authority

1. Payment shall be made on the basis of

“Measurement Books” (MB)
2. Claims in the prescribed forms will be
made by contractor/Local Authority
3. Payment should be made after entries in
MB is verified, calculation checked,
quality of work certified etc.
(Rule 135,136)
Validity of Refund Order

3 months
from the date of issue

89
 Investment By Govt.

Bills for Investment in a Company,

Corporation, Autonomous Body shall be
drawn in GAR 34 by DDO duly supported by
Sanction Order.

(Rule 150)

90
 Public Debt
 Market Loans (Rule 167)
 Treasury Bills (Rule 168)
 National Saving Certificate (Rule 169)
 Post Office Saving Bank, Cumulative
Time Deposits, Recurring Deposits
(Rule 170)

91
 Funds
1. General Provident Funds (R.173-177)
2. Contributory Provident Funds (R.173-177)
3. Post Officer Insurance Funds (R.172 & 178)
4. Deposit Linked Insurance Scheme-1977 (R.177)
5. Central Government Employees Insurance Scheme-
1977 (R.179)
6. Central Government Employees Group Insurance
Scheme-1980 (R.180)

NB: Funds are kept under Public Accounts and not under
Government Management (R.181)
92
 Deposits
 There are two types of Deposits
1. Deposit Bearing Interests
2. Deposit Not Bearing Interest
 Both the Deposits classified under
Sector K-Deposits & Advances of
Public Account

(Rule-182)
93
 Deposits bearing interest
 8336 Civil Deposits (Deposited
by immigrants)
 8337 Deposit by Railways

 8338 Deposit by local Fund

 8342 Other Deposits

[List of Major & Minor Heads[

94
Deposits Not bearing interest
1. 8443 – Civil Deposits
2. 8444 – Defence Deposits
3. 8445 – Railway Deposits
4. 8446 – Postal Deposits

[List of Major & Minor Heads]

95
 Deposit - Limitations
1. No money shall be received for deposits
unless under statutory provision or under
special order
2. No Pay, Pension other allowances should
be placed in deposits on the ground of
absence of payee or any other reasons
3. No fines should be placed under deposits
on the ground that appeal is pending
Contd….

96
 Deposit – Limitations….
4. No refunds can be drawn to be lodged in deposit
pending demand by payee
5. No jewels or other property received for custody
and restoration in kind should be deposited
6. Govt. Promissory Notes or other Security should
not be placed in deposit
7. Sales proceeds of unclaimed property should not be
kept in deposit
8. Net proceeds of unclaimed impounded cattle may
be kept in deposit for three months
9. Money belonging to prisoners should not be kept in
deposit
(Rule 184)
97
 Refund of Deposits
• Refund of deposit can be made only on
the receipt of the person entitled to them.
Application-cum-bill (GAR-43) should be
presented.

(Rule 186)

98
Unclaimed Deposits

• Unclaimed deposit, after 3

accounting years, should be
transferred to Lapsed Deposit

(R.189)
99
 Lapsed Deposit
1. All deposits in excess of Rs.25/-
unclaimed for more than 3 complete
accounts year is credited to Consolidated
Fund of India after keeping a note against
the Deposit entries.
2. Such deposits against Supply Orders,
A/Ts etc. that are under litigation should
not be deemed as unclaimed

(Rule 189)
100
 Re-payment of Lapsed Deposit
1. Repayment of Lapsed Deposit will be made
only by Accounts Officer, even though
detailed accounts are being kept by
Departmental Authorities
2. Application-cum-Bill in GAR 46 along with
original receipt for deposit should be
submitted by depositor
3. The repayment will be recorded in the
Lapsed Deposit Register to avoid double
payment
(Rule190)

101
 Personal Deposit (PD)
• Personal Deposit Account is a device
intended to facilitate an Administrator to
credit receipts into, and affect withdrawals
from such account
• Personal Deposit Account will be opened
in consultation with CGA
• Certain PD account is being operated by
virtue of law or rules (Ex. Customs &
Central Excise Dept.)
[Rule 191]
102
 Types of PD
A. In favour of an Administrator appointed for the
purpose administering moneys tendered by or
on behalf of ward and attached estates under
Govt. Management
B. In relation to Civil & Criminal Court’s deposits,
in favour of Chief Judicial Authority
C. PD created under certain Regulatory Activates
by Government
D. Created by Law or Act or Rules
E. Officers Commanding Units or Regimental
Funds in Defence Department
(Rule 191)
103
 Withdrawal from PD

1. Withdrawal can be allowed only by

cheques unless through other procedure
specially permitted by Govt.
2. Authority should ensure sufficient balance
is available before making payment
3. The payment scroll tendered by bank to
PAO should support with paid cheques
(R.194)
104
 Lapse Deposit of PD
• Personal Deposit Account created will
not automatically lapse (unless specifically
mentioned) even after 3 complete
accounting years as far as act, law is in
force.

(R.192)

105
THANK 106
U