Receipt and Payment

Part-I
• The Central Government Account (Receipts and Payments) Rules contain rules
regulating the custody of the Consolidated Fund of India and the Contingency
Fund of India, the payment of moneys into such funds, the withdrawal of money
therefrom, the custody of public moneys other than those credited to such funds
received by or on behalf of the Government of India, their payment into the
Public Account of India and the withdrawal of moneys from such Account in and
others matters connected therewith or ancillary thereto.

• Receipt & Payment rules made by the President in 1983 and came into force in
01st June 1983. They shall apply to all transactions, other than payment of
pensionary benefits, pertaining to the Central Government and the Union
territories
 Cont….
• R&P rules give provisions for safe custody of Govt. money in the Govt. A/c i.e.
Consolidated Fund, Contingency Fund and Public Account.

• Money credited to Government Account either in the Reserve Bank; or in a Central

Treasury.

• All moneys received in account of revenues or receipts or dues of the Government

shall, without undue delay, be paid in full into the accredited bank. Pay-in-slip in Form
GAR 1 shall be used for the purpose.

• This money can’t be used to meet departmental expenditure except in the following
cases: Forest, PWD, Civil court, Tax dept., library, Jail, Railway, Post & Telegraph etc.
Cont….
• The bank will be kept open for the conduct of Government transactions on a
recognized holiday, or beyond normal business hours on any day, if so required by
CGA.
• GAR-2: Last pay certificate
• GAR-3: Cash Book:-
• Maintained by Head of Office,
• All monetary transactions are recorded
• Closed regularly
• At the end of the month, Head of Office should verify Cash Book and record a signed with
dated certificate
• Head of Office initial every correction & date his initial
• GAR-5: Register of Valuables:- Receipts in the form of local cheques, DD in favour
of PAO accepted by NCDDO is not entered in the Cash Book but in the GAR-5 and
remitted into the bank dully supported by Challans.
Cont….
• Cash Book of M/o Railway are kept open for the month of March every year up to
18th April (N.F. Railway) and 10th April for other Indian Railway. This is done to
minimise the balance under “Traffic suspense- Cash in Transit”

• Cash Chest:-
• Double lock
• Duplicate keys placed in separate sealed covers
• Lodged with officer higher rank than custodians
• Once a year in April, the keys are sent for examination
• Duplicate key register is maintained

• Payment-cum accounting process in the departmentalised system is established

and maintained by CGA.
 Part-II: Receipts of Government Revenue
• Govt. money can be received in the form of
• Cash
• Bank draft (crossed) cheque (crossed)
• Money order/ postal order
• In any other form prescribed by Govt.
(Note: Departmental officer can receive cash upto an amount not exceeding 100/-)
When cheque/DD is given to Date of Receipt
Bank Date on which it was cleared & entered in Receipt Scroll
Departmental officer On 3rd working day after its presentation
Sent by post Date on which the cover containing it is put into the post

Refusal to accept cheque/bank draft if tendered

By bank On last day
By departmental officer On the last 2 working days
Cont….
• If the cheque/draft gets dishonored, then it is returned to payee and the challan
accompanying it is not returned but retained & destroyed in due course.
• Grant of Receipt to the payer
• Head of Office must give the payer a receipt duly signed by him
• He may at his discretion can give this authority to any gazetted/non-gazetted subordinate
• GAR-6: Receipt Books
• Obtained from Central Forms Store, Kolkata
• used by all Government officers receiving money on behalf of the Government
• must be kept under lock and key in the personal custody of officer authorized to sign the receipt
on behalf of govt
• duplicates/copies of receipts should not be issued on the allegation that originals have been lost
(but a certificate in this regard may be given)

Note: Receipts need not be issued where the field staff of the National Saving
Organization receives money on account of sale of savings boxes 
 Part-III: Withdrawal from Government Account
Section-I: General Rules
• No withdrawal from Govt. Account except by presentation of bill unless otherwise authorized
by Dept. of Expenditure, M/o Finance.
• Bill becomes voucher when it is receipted & stamped PAlD.
• Pensioners are governed by the Treasury Rules.
• Income Tax is deducted from the bill of contractor/supplier under Section 194-C of l.T. Act,
1961. 
• @ 1% lndividual/HUF and 2% Other
• Provided income shall be 30000 at a time or 1 lakh in a FY
• GAR-9: Bill Register:-
• Maintained by Head of Office who draws money on bills themselves
• Reviewed monthly by a gazetted officer
• GAR-10: Bill Transit Register:-
• Maintained by Head of Office who draws money from AO/CDDO
• Reviewed bi-weekely by a gazetted officer
Cont….
• Arrear claim- usually Arrear Claim of GS is preferred within 2 yrs of its becoming due. If not preferred
within 2 years then they must be presented to the Account Officer for pre-check payment.
Note: Rules of Arrear Claim does not apply to claim on account of arrears of pension.
• Preparation of bills:
• Bill for all debt-head items are made in red ink on white paper
• Charges against two or more heads don't include in one bill
• Stamp for receipts
• Receipts from all sums exceeding Rs. 5000 must be stamped as per lndian Stamp Act 1899
• This limit is applied to the net amount payable on a bill & not to the gross claim
• Reciepts for payment made outside lndia should follow local laws, if any, governing the stamping
• Cheque books
• Cheque books are supplied by the AO/CDDO concerned
• Cheques written in cheque perforating machines are supplied to the Accounts Officer from the
Deputy Controller of Stamps, Central Stamp Store, Nasik
• There is no bar on cheques being drawn for less than Rs. 10
• However in case of Post & Telegraph, lowest sum for which a cheque may be issued is Rs. 100
Cont….
• Types of Cheques (approved by CGA)
(i) Category A (ii) Category B (iii) Category C
• Category A-
• cheques towards payment or personal claims of Government servants, pensioners, contractors,
suppliers and public sector companies and corporation shall be drawn as payable to or order of the
payee
• With superscription "Account Payee Only" crossed cheque
When amount >1000 in case of salary and cheque amount >500 in case of non-salary cheque
• Such non-salary cheque can be issued as open cheque if desired by the payee but only
as Order Cheque for up to Rs. 1000
• ln case of salary cheques: At Ministry/department or UT headquarter level, this rule can be
relaxed by CCA/CA/Dy. CCA in consultation with FA
• At other than headquarter level, this can be relaxed by PAO with the approval of HOD
Note: GS shall exercise their option to receive their salary in cash or by cheque in the month of March for
ensuing year
Cont….
• Category B-
• With superscription " Not-Transferable"
• Cheques payable to Govt officers to enable them to make payments like pay & allowances,
contingencies
• Not negotiable
• The word "only" is being added after the designation of the payee officer
• Category C-
• With superscription " Government Account"
• To make payments on account of inter departmental or inter-govt. dues
• Shall he crossed with words "for credit to Govt A/c & not payable in cash”
• Not negotiable
• Cheque is valid for 3 months from the date of issue. This rule does not applies to
cheques drawn on local bank by Indian Mission & Post abroad.
• Revalidation of time-barred cheque has now been stopped
• Fan-fold Cheques: used in defence services and in continuous lengths & do not have counterfoils.
 Part-III: Withdrawal from Government Account
Section-I: General Rules (Part-II)
• A cheque remaining unpaid for 6 months after the month of issue & not surrendered for renewal
should be cancelled.
Lost Cheque:-
• A fresh cheque in lieu of a cheque alleged to be lost may be issued by PAO/CDDO within a period
of 1 year from the date of issue of cheque
or 3-1/2 from the date on which the relevant claim had become due, wherever this is beneficial
with the concurrence of Pr. AO.
• When fresh cheque is issued, a non-payment certificate is obtained from PAO
• In case, where fresh cheque is issued and both cheques are noticed to be paid---- amount of
renewed cheque is placed in suspense A/c (8658)
GAR 12– Indemnity Bond for lost cheque
• Specimen signatures of every govt officer handling govt transaction shall be communicated to
PAO (in case of Bill)
Bank(in case of cheque)
Cont….
Means of Payment Date of payment
• Cheque handed over to payee Bank’s working day next to the date of cheque or specific date super-scribed
whichever is later
• Cheque posted to payee
Date put into the post or the specific date super-scribed which ever is later
• Payment by bank draft
Date handed over
• Payment by postal money
order/remitting money by post Date on which the receipt for the money is issued by the post office.

Letter of Credit:-
• Concerned AO communicate to bank, amount of quarterly assignment in favour of CDDO
• LOC remaining unspent at the end of Financial Year is not carried forward to the next FY
• Paying Branch- responsible to ensure that at no time LOC amount is exceeded by the payment of
any cheque

• Recovery from a govt servant may not ordinarily be made at a rate exceeding 1/3rd of pay. It can be done
only if acted contrary to orders or without due jurisdiction of taken an advance for a specific purpose but
not used it for that.
 Part-III: Withdrawal from Government Account
Section-II: Personal claims of Government Servant
• These provisions do not apply to dept. of Defense, Railway and Post & Telegraph
• Monthly pay bill signed not earlier than 5 days before the last working day of month
• Pensioners are governed by the Treasury Rules.
• lf monthly salary bills are to be presented to PAO/CDDO then they should reach there by
20th of the month
• If GSs are posted at localities remote from the station of concerned DDO then the bill
should reach PAO/CDDO by 15th of the month so that outstation bank drafts reach the
claimant within 7 working days of the next month
• Profession tax levied by the state government
• Pay & Allowance of newly appointed GS is given without a medical certificate of fitness
for a period not acceding 2 months.
• Pay & Allowance are drawn for the day of Government Servant’s death
Cont….
• Attachment of debt:-
• When the pay of a GS is attached by a any order of a Court of Law, it is duty of the officer receiving the
attachment order to make required deductions in form GAR 22
In case of decree other than decree of maintenance
Salary attachable: 1/3rd (Salary - 1000)
Non attachable: 2/3rd (Salary – 1000)
In case of decree of maintenance
Salary attachable: 2/3rd of Salary
Non attachable: 1/3rd of Salary
• Emoluments exempted from attachment are laid down in Code of Civil Procedure, 1908
• Allowances exempted from attachment are
TA HRADA Compensatory Allowance Conveyance Allowance dearness Pay
Subsistence Grant/Allowance Education allowance Foreign Allowance
• GAR-25: Register Of Undisbursed Pay & Allowances
• The amount of undisbursed pay & allowances may be retained by HOO for any period not
exceeding 3 months
Cont….
• Arrears payable after death: Pay & allowances claimed on behalf of a deceased GS may be paid
without production of usual legal authority by the HOO if the claim does not exceed Rs. 10000. But when
claim exceeds Rs. 10000 then payment is made by HOO only on the execution of lndemnity Bond (GAR
26) and two sureties.
 Part-III: Withdrawal from Government Account
Section-III: Contingent Charges
• Contingent Charges: All incidental & other expenses (including on stores) incurred for management of office,
workshop , laboratory, store etc.
• Exception: Expenditure on Work, Tool & Plants are not included in contingent charges.
5 types of Contingent Charges
Contract Scale-Regulated Special Counter-signed Fully Vouched
• Contract Contingencies – lump sum is placed annually at the disposal of disbursing officer for expenditure without
further sanction required.
• Scale-Regulated Contingencies - regulated by scales laid down by competent authority e.g. charges on a/c of rewards
for destruction of wild animals
• Special Contingencies - incurred with the previous sanction of Superior Authority
• Counter-Signed Contingencies - require countersignature (approval) of controlling authority
• Fully-Vouched Contingencies - incurred by HOO without requiring any sanction or countersignature but must be
passed on fully vouched bills subject to the necessity of accounting for them.
Note: where payment of telephone, electricity & water bills are more than monetary limits and. cannot be
paid out of the permanent advance, then such payments are made on Fully vouched contingent bills (GAR 29)
Cont….
• Permanent /Imprest Advance - advance given to meet miscelleneous official expenses of petty
nature. It is subject to recoupment and not adjustment/settlement.
(Reviewed annually on 31st March)
Max value of Permanent Imprest is Rs. 5000
Out of which max Rs. 20OO can be spent for contingent charges at a time. However it can be spent more
than 2000 in case of telephone, electricity and water bills where NCDDO is located away from CDDO/PAO
• GAR 2 7: Contingent Register
initials of HOO or delegated gazette officer
• GAR 29: Contract Contingencies (no sub-voucher sent to AO)
• GAR 32: Counter-signature contingencies
• Purchases of Service Postage Stamps can be made by making payment only in Crossed Cheque.
• Note: Pay of Group-D Govt. servants is considered as contingent charge such as
i. Hot weather est. and mazdoors , sweepers etc.
ii. Other group-D servants like dhobis, tailors, grass-cutters etc.
iii. Wages of temporary field establishment of surveys & settlement
iv. Extra potdars etc.
 Part-III: Withdrawal from Government Account
Section-IV: Purchase of Stores
• 'Stores' - All articles and materials required for the public service which are budgeted for and classifiable
under heads of expenditure such as works, tools and plant, machinery, equipment, material and supply.
• As a general rule, payment for supplies is not permissible unless the stores have been received and
surveyed. Payments prior to verification of quality and quantity of the materials may be permitted in
exceptional cases only.
• GAR 30 - Advance Payment for purchase of stores
• GAR 29 - Adjustment Bill towards advance payment on account of purchase of stores & its settlement
• Purchases outside India:
• Payments for all purchases ordered through the India Supply Missions at London or Washington will be
arranged by the High Commission of India, London or Indian Embassy, Washington.
• If stores are ordered by a Min/Dept direct from firms abroad on FOB basis then it is subjected to
inspection by the India Supply Mission, London or Washington. In such cases, payment shall be arranged
by Accounts Officer of concerned Min/dept.
• LOC shall be opened in favour of foreign suppliers when heavy payments are involved
• Instructions for payments to foreign suppliers for imports under various foreign aid programmes and,
instructions for accounting of cash and equipment's grants received by the Govt. from various foreign
Govt are required to be issued by the CAAA duly approved by the CGA on the advice of CAG
 Part-III: Withdrawal from Government Account
Section-V: Works Expenditure & Misc. Payments

• Payments to labourers –
• wages of labourers engaged departmentally, shall be drawn on Muster Rolls
• payment on muster rolls must be certified by disbursing officer
• Unpaid wages on muster roll shall be carried forward from muster roll to muster roll until they are paid
• Payments to work-charged establishment –
• Wages of members of the work-charged establishment may be drawn on the form of pay bill of regular
establishment (Form GAR 13)
• If the acknowledgement of the payee cannot conveniently be obtained on the bill itself; it may be
obtained separately and attached to the bill as a sub-voucher.
• Payments to Contractors/Suppliers –
• payment for all work done other than by daily labour and for all supplies shall be made on the basis of
measurements recorded in Measurement Books.
• Claims for such payments shall be prepared by the claimants themselves in authorised forms of bills and
vouchers
• When the maintenance of any Govt buildings/roads is entrusted to a Local authority, the payment made
to it is in the same way as payment for work done by a contractor
• Advance payment to a contractor means payment for work done by the contractor but not measured.
• Final payment to the contractor is not made without detailed measurements.
 Cont….
• Refund of revenue
• Departmental officers are permitted to draw amount in lump sum on their receipt to make payments of
refund by Min/dept./admin concerned in consultation with Pr. AO
• Refund of revenue in cash is allowed for amount up-to Rs. 100
• Refund of the value of currency notes credited to Govt. as per RBI Rules, 1975 shall be made by Currency
Officer by debiting Govt A/c held by Dept. of Economic Affairs, M/o Finance
• refund of revenue from permanent advance is allowed up-to Rs.100
• GAR 33 - Bill of Refund of Revenue
• An order for refund of revenue remains valid for 3 months from the date of issue
• 'Grants-in-aid' and 'Contributions' include such types of expenditure as grants to local bodies, religious,
educational institutions and compensation to GS for accidental losses and contributions to public
exhibitions/fairs.
• GAR 34 - Bills for 'Grants-in-aid' and 'Contributions'
Bills for compensation to GS for accidental losses due to flood, cyclone, earthquake etc. may be drawn in
a simple bill form but submitted to PAO for pre-check.
• GAR 35 - Bills for educational scholarships or stipend
• Payment to Reserve Bank:- Bills for sums payable to RBI such as bills in connection with the floatation of
new loans or management of Public Debt, shall be countersigned by an officer of M/o Finance before they
are paid
 Cont….
• Expenditure from Discretionary Grants –
• Discretionary grant is always non-recurring
• Account of this expenditure should be sent to AO concerned
• A copy of this account, without vouchers, shall also be sent to the Admin Dept concerned at the end of
every month except –
When it is estimated that sanctioned expenditure will be completed & the account closed within 3
months from the date of sanctioning.
In such cases, account is sent to Admin dept after expiry of 3 months or upto 31st March if 3 months
falls after 31st March
• Payment on behalf of Defence Services –
• When a civil officer is required to supply carriage to troops on the march, then he make advance payment to
owner of Half of the hire charges for full journey and later on recovers same from Defence officer
• The civil officer make advance payment from Permanent Imprest and access “8658 PAO suspense” Head.
When discount on stamps is allowed by deduction from purchase money, a detailed bill is raised in Form GAR
31 headed “Not For Payment” and submitted to PAO after countersigned by controlling authority.
 Part-III: Withdrawal from Government Account
Section-VI: Loan & Advances

• Loans and Advances may be drawn on simple receipt in a form similar to GAR 34.

• Revenue Advance includes (i) Takavi Advance (ii) Advances under Land Improvement Acts

• Takavi Advance - expenditure on Takavi works by PWD (regulated by departmental rules)

When PWD fails to recover the estimated cost of such works, then recoveries of such advances will be made
by Collector in the same way as arrears of land revenue.

• GAR 30 - Abstract Bill of Revenue Advance

Submission of detailed bill towards adjustment of revenue advance drawn shall not be delayed beyond the
end of the month following that in which the advance was drawn.
• Money limit for the amount which can be drawn on abstract bills is prescribed by HOD
• PAO maintains a "Plus and Minus Memorandum" to keep a watch on recovery of advance.
• This memo must record the Principal recovered but must not record Interest.
 Cont….
• Advances to Govt. Servant
Long Term Advance Short Term Advance
• Not recoverable in less than 60 installments • recoverable in less than 60
• e.g. HBA, Motor conveyance • installments
• Approved by PAO • e.g. TA/Tour/LTC Advance
• Form GAR 36 • Approved by HOO/DDO
• Form GAR 37

• GAR 38 - Schedule of recoveries of advances

• GAR 38A - Monthly abstract of recoveries of advances
 Part-IV: Public debt, Provident Fund, Deposit etc.
• Sale & Discharge of Treasury Bill is maintained by RBI on the instruction of Govt
• Treasury Bills are paid only on maturity at the bank which issues it
• Treasury Bills on maturity are called Discharge Bills
• Provident Fund of GS are maintained by

HOO/DDO Group D
PAO Others
• In case of Group D, withdrawals from GPF are paid by HOO/DDO. In case of other groups, these are
submitted to PAO for pre-check.
However, Advances from GPF can be made by HOO/DDO for all categories.

• Where the amount of the advance or withdrawal exceeds Rs.250, the payment may be made, even to a non-
gazetted subscriber, by an 'Account Payee' cheque drawn in his favour if so desired by the subscriber.

• GAR 40 - Post Office Fund

• GAR 41 - GPF Deposit
• GAR 42 - Advance/Withdrawal from GPF
 Cont….
• At the time of retirement of Govt. Servant (other than Group D):-
Government Servant (Subscriber)
submit an application through HOO/DDO (1 year in advance)
Accounts Officer
Issues “Preclosing Statement” (not later than 10 weeks in advance)

DDO Submits bill in GAR 42 (1 month in advance of retirement)

• Withdrawal from Public Account (i.e. GPF) will be by the orders of the Min/Dept in consultation with the
CGA.
Deposits
Bearing Interest Non-Bearing Interest

Deposits falls under “Sector K - Deposit & Advances” in Public Account Money is credited as a deposit only
under the formal order of the court or other competent authority.
 Cont….
• Items not considered as Deposits:
• Pay,pension or other allowances remaining unpaid
• Fines (except compensation fines)
• Any refund pending
• Jewel or other property
• Govt promissory notes/other security deposits
• Post office saving bank, and allied deposits such as FD,TD etc.
• Some points to be noted:
• The net sale proceeds of unclaimed impounded cattle are kept in deposit for 3 months and if no claim
be made within that time, are to be credited to the proper account.
• The sale proceeds of unclaimed property are not to be placed in deposit at all; under Police Act 1861,
the property itself is to be kept for six months, but money realised by sale is at once credited to the
Govt A/c.
• The sale proceeds of unclaimed perishable property should be held for 6 months in deposit
• The Police Department should have no deposits except security and earnest money deposits which
should be paid into Government Account under the major head '8443 Civil Deposits'.
• Unclaimed property found by or delivered to a police officer, should. be made over to the Magistrate.
• Proceeds of sale of old stores or other Government property should be credited to Govt Account
 Cont….
• Lapsed Deposit: Amount lying unclaimed in deposit as on 31st March shall be credited to Govt. A/c under
Consolidated Fund of India-
Value If unclaimed for
Upto Rs 25 1 Year

More than Rs. 25 3 Year

• Unclaimed deposits pertaining to contracts, supply orders which are under litigation or arbitration shall not
be deemed as “Unclaimed Deposits” for the purpose of crediting to Govt. A/c.

• GAR-46: Payment of Lapsed Deposit.

Thank You