Railway Accounts Department Examinations

Showing posts with label civil heads. Show all posts
Showing posts with label civil heads. Show all posts

Tuesday, August 28, 2018

CIVIL HEADS - Important one. asked many times in previous III A exams.


Civil Heads


v      Introduced w.e.f 01.04.1989.
v      The Railways will book the payments and receipts relating to the heads controlled by other Civil Departments (except those relating to services rendered by the Railways to the latter as a commercial Department).   Such heads are known as Civil Heads.
v      The amounts are straight away booked to Civil Heads.
v      Civil Heads formed as distinct sub head below the Public Account in the Monthly Account Current.
v      At the end of the financial year, the balances under Civil Heads are not carried forward to the Next financial year.  These Heads are closed to “Government” in Railway Accounts.

v      Examples are

                                 1.        Recoveries of Income Tax from employees and contractors/suppliers.
                                 2.        C G I S recoveries (Rs.30 for Gr. C Staff etc)
                                 3.        Recoveries of P L I (Postal Life Insurance) from the employees.
                                 4.        Payment of Dividend to General Revenues
                                 5.        Interest on Loans from Central Govt. and Railway Funds.

v      Advantages:

    
                                 1.        Elimination of cash payment for transactions where Railways functioned merely as agents of other Civil Depts (example is recovery of income tax from salaries behalf of Income Tax Dept.).
                                 2.        It is no longer necessary for the Railways to issue cheques for payments due by Railways for recoveries or recover cash for payment made.
                                 3.        Avoid inflated turnover (of cash) of RBI/Other Banks firstly at the paying end and then at the receiving end without any tangible results.
                                 4.        Process of booking under PAO  Suspense Head has been greatly reduced.

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