The Tamil Nadu Panchayats (Power to write-off irrecoverable taxes, fees, etc., by Panchayat Union Councils, restrictions and control) Rules, 2000

What the Rules govern

The Tamil Nadu Panchayats (Power to write-off irrecoverable taxes, fees, etc., by Panchayat Union Councils, Restrictions and control) Rules, 2000 provide a process for writing off taxes, fees and other amounts that cannot be recovered. They apply to Panchayat Union Councils, their Commissioners, collection staff, specified revenue authorities, lessees and contractors.

These Rules do not allow an amount to be written off merely because it remains unpaid. The person responsible for collection must report the amount and explain why it is irrecoverable. The Commissioner must verify the report, confirm that the defaulter has no attachable property within the village, and ensure that all recovery methods have been tried unsuccessfully.

Approval and financial limits

Key approval requirements include:

• A list of irrecoverable amounts must be prepared once every quarter and placed before the Panchayat Union Council at its next meeting.
• The list must include the Commissioner’s reasons and recommendations.
• If a single tax, fee or other amount exceeds Rs. 250, the Commissioner must obtain the Inspector’s sanction before recommending write-off.
• Where the Collector or a subordinate is responsible for collection, the write-off limit is Rs. 100 for the Revenue Divisional Officer and Rs. 500 for the Collector.
• The revenue authority approving a write-off must notify the Panchayat Union Council in writing, with reasons, within two months after sanction.

Records and supporting documents

A prescribed register must record amounts written off. The Panchayat Union Council’s Minutes Book must state the nature of the amount, the assessment number for tax items, the period concerned and the amount written off. The total approved amount must be written in words.

Bills and warrants, including foils and counterfoils, must be stamped “Written-Off”. Corresponding entries must also be made in the demand register.

Lessees and contractors

Amounts payable by a lessee or contractor may be written off only when an extraordinary external cause, which could not reasonably have been anticipated, prevented performance. The write-off cannot exceed the proportionate amount for the affected period. Prior sanction from the Inspector is required when the proposed amount exceeds Rs. 500.

Contractual penalties must generally be enforced. A late-payment penalty may be written off only where instalment payments were fairly regular in the Panchayat Union Council’s opinion and the entire amount due was paid before the lease or contract period ended.