Doing away with the systems of cash transfers through cheques for payment of employee salaries and payments to contractors, suppliers and vendors, the Income Tax department has recently launched an e-payment system.
The system was initially launched for Tamil Nadu and Puducherry, at the Ayakar Bhavan at the office of the Deputy Controller of Accounts, Central Board of Direct Taxes, Income Tax, South Zone. The system will soon also be launched in Bangalore for Karnataka, and later in Kerala too. Payments amounting to an estimated Rs. 100 crore per annum will be made through this system.
The web-based system of electronic payment services was developed by the Controller General of Accounts (CGA), New Delhi, and is being implemented in the Pay & Accounts Offices under all civil ministries and departments of the Central government.
Money is credited directly into the bank account of the payee (within six hours) through digitally signed e-advices generated from COMPACT (the accounting software of CGA) through the ‘Government e-payment Gateway (GePG) on a secure communication channel.
S. Sendamarai Kannan, Chief Commissioner of Income Tax, Chennai inaugurated the facility.
The web-based system was developed by the Controller General of Accounts