New Local Government System w.e.f. 01.01.2017 dt 27.01.2017

New Local Government System w.e.f. 01.01.2017 dt 27.01.2017

OFFICE MEMORANDUM

Subject: Local Government System

I am directed refer to this department’s letter of even number dated 29.12.2016 on the subject cited above and to state that several quarters have approached this department for clearance of outstanding payments against accrued liabilities of the following nature;

i) Amount accumulated due to Income Tax, deducted at source, from the salary of the employees of the erstwhile District Governments form the salary for the month of January, 2017, payable to Income Tax Department through Provincial Account Number – I Non-Food.

ii) Amount accumulated due to contribution towards G P Fund, deducted at source from the salary of the employees of the erstwhile District Governments, payable to Provincial Account Number – I Non-Food.

iii) Amount accumulated due to contribution towards Group Insurance, deducted at source from the salary of the employees of the erstwhile District Governments, payable to Provincial Account Number – I Non-Food for further payment to B F Board.

iv) Amount accumulated due to contribution towards Benevolent Fund, deducted at source from the salary of the employees of the erstwhile District Governments, payable to Provincial Account Number – I Non-Food for further payment to BF Board.

v) Amount accumulated due to deduction at source as House Rent @ 5%, deducted from the salary of the employees of the erstwhile District Governments, payable to the Provincial Government through deposit in Provincial Account Number – I Non-Food.

vi) Amount accumulated due to contribution towards Punjab Government Servants Housing Foundation, deducted at source from the salary of the employees of the erstwhile District Governments, payable to Provincial Account Number – I Non-Food for further payment to PG SHF.

vii) Payment of cheques issued on account of Income Tax deducted at source from the payment to contractors / suppliers by the DDOs of the erstwhile District Governments / AG / DAOs on or before 31.12.2016 and remained unpaid due to non-submission by the Income Tax department to the State Bank of Pakistan / National Bank of Pakistan.

2. The matter has been examined in the Finance Department and it has been decided to allow the above mentioned payments in the following manner;

i) The amount to be transferred to the Provincial Account Number – I NF, accumulated as contribution towards G P Fund, Benevolent Fund, Group Insurance, Income Tax deducted at source, House Rent deduction and contributions deducted on account of PGSHF, will be transferred by the Accountant General / concerned District Accounts Officer by issuing an authority to the respective branch of the State Bank of Pakistan / National Bank of Pakistan for shifting of cash to that extent from District Government Account – IV to Provincial Account Number – I NF. Such authority letters shall be entertained by the State Bank of Pakistan / National Bank of Pakistan starting from 01.02.2017 to 04.02.2017.

ii) The cheques issued in favor of the Income Tax Department may be submitted by the Income Tax Department to the respective branch of State Bank of Pakistan / National Bank of Pakistan for clearance. Such payment will be made by the State Bank of Pakistan / National Bank of Pakistan by book transfer equivalent amount in relevant receipt object code under Federal Government’s Account Number – I NF between 01.02.2017 to 08.02.2017.

3. I am directed to request you to make the arrangements for payments, as above, on submission of authorities from Accountant General / District Accounts Officers and cheques presented by the Income tax Department on the dates indicated for each category of payments.