GOVERNMENT OF ]AMMU AND KASHMIR
FINANCE DEPARTMENT
% V
jAMMU AND KASHMIR
FINANCIAL CODE
VOLUME-I
6TH RE-PRINT EDITION
Incorporating Correction Slips up to
ending June, 2 0 0 6
TABLE OF CONTENTS
Chapter Subject Rules Pages
Chapter I-DEFINITIONS 1.1 1-6
Chapter Il-GENERAL PRIf-JCIPLES AND RULES
I. Duties as regards cash and accounts 2.1 7
II. Pvcceipt of money, its custody and
payment into the Treasury:
(i) Receipt of money 2.2 8-10
(ii) Receipt of coin, notes etc. 2.3 11
(iii) Grant of receipt to the payer 2.4 11
(iv) Custody of receipt books 2.5 11
(v) Cheques tendered in payment of
Government dues 2.7 12-13
(vi) Deposits in the Treasury of cash
chests and valuables of other
Departments 2.8 13J 4
(vii) Payment of money into the
Treasury 2.9 14-15
III. Maintenance of Accounts Cash Books 2.10 15-19
IV. Payments
(i) General principles and restrictions^'
relating to expenditure 2.16 19-21
Chapter Subject Rules Pages
(ii) Payments of money at
Treasury 2.17 21
. (iii) Drawal of morvey from the
Treasurj' 2.18 22
(iv) General instructions regarding
the preparation and form of bills
and vouchers 2.27 26
(v) Vouchers for departmental
payments (Payments made out of
Departmental chests) 2.28 31
(vi) Affixation of receipt stamps on
vouchers 2.32 32
(vii) W:thdr?v'?l [Link]
the Tresiury on Go' crnnier.t
acco^-'nt 2.33 34
(viii) Arrear claims 2.34 35
(ix) Check of charges 2.45 38
(X) Audit objections prd fc-coverics 2.4-5 38
(xi) Responsibility for over charges 2.47 40
(xii) Control over [Link] 2.48 141
(xiii) Internal check [Link] irregularities,
waste and fraud 2.49 42
V. Defalcations ?nd losses
(i) Responsibility for Losss^s sustained
through fraud or ne0'i,rfince of
individuals 2.50 42
Chapter Subject Rules Pages
(i-a) ExlMbitioii oriosses in Government
Acci'^HnTs 2.5n-A 43
(ii) Kepnn ro the Accounlant General
and ihe Departrnenta! superior
authoniy 2.51 43
(iiil [Link] due lo iiyttjral calamities 2.52 46
Vl-Inter Government and later-
Departnierital transactions 2.53 46
VI)-Misceilaneous Rui'^s and Orders
(i) Erasures, overwriting and
corrections 2.54 47
(ii) Issue of duplicates of copies
pfdocuments 2.55 47
(iii) Prohibition reg<irding sending
of communications at public
expenses 2.56 48
(iv) Call of \ ouchers from Audit
Office 2.57
(v) Claims against the Railway for
goods lost in transit 2.58 49
(vi) Depjiitmental check of receipts
and disbursements 2.59 49
VIII-Departmental Regulations 2.60 50
Chapter ni-CHECiC ON REVENUE AND RFCEIPTS
I. General 3.1 52
II. Fines 3.6 • 54
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Chapter Subject Rules Pages
i n . Miscellaneous Demands 3.7 55
IV. Interest on Government
Securities 3.8 55
V. Remission and abondonment of
claims to revenue 3.9 55
VI. Rent of Government buildings,
lands etc. 3.11 55
VII. Audit of receipts 3.12 5,6
Chapter IV-PAY ALLOWANCES AND PENSION
General rules
I. Due Date 4.1 59
II. Payment on quiting the service 4.3 - 61
III. Death of Payee 4.4 62
IV. Payment of dues of a Goverrrr^nt
servant v/hose whereabouts are
unknown 4.5 64
V. Payment o^'pay, leave salary etc.
and diuwdl ofjeave salary and
" pensions etc. through Banks by
ftimishingBond of Indemnity 64
' Place of payment
(i) Pay and ances 4.6-a 64
(ii) Leave Salary 4.6-b 64
(iii) BillsoflnspectingOfficcrs
and their establisnment 4.6-c 65
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Chapter Subject Rules Pages
(iv) Pay due to Government
servants absent out of India 4.6-d 65
(v) Payment ol pay and allowances 4.6-e 65
(vi) Frovis'onal p^y?"n?rt of"pay on
»appointrnent, promotion, transfer
to a new post 4.7 68
VIl-Last Pay Certificate : 4.8 70
Vni-Oed'iction f r o n Bills
(i) Funds deduction 4.9 72
(ii) Deduction of taxes on income 4.10 73
(iii) House rent deduction 4.11 73
IX-Attachment of Pay and Allowances
etc. for debt
(i) Pay and Allowanrci 4 12 74
(ii) Pensions 4.13 76
X-Communications to Audit the orders
effecting pay etc. 4.14 76
XI-Maintf^[Link] Rppi<;ter of Subscribers
to G. P. Fund and State Insurance Fund 4.15 77
XIl-Transfer of charge - 4.16 77
XIII-Recovery of Government dues 4.18 78
XlV-Creation of appointments 4.20 79
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Chapier Subject Rules Pages
Chapter V-PAY, ALLOWA>!CES ETC. GAZETTED
GOVERNME>hT SERVANTS
1. Introi^'JCtory 5.1 8S
n. Fnrn: ofR'lIi: 5.2 8S
n - A . provisional payment of leave salary 5.5-A 92
in. Transfer of oftlce 5.6 93
IV. Trave^'ing Allowance 5.7 93
V. Inspecting Officers 5.9 93
Chapter VI-PAY, ALLOWANCES OF
ESTABLISHMENT
I. Sections of establishment 6.1 94
II. Annual returns of establishment 6.2 95
III. Age, Health [Link] Permanent
Residentship Certificate 6.4 96
IV. Alteration of establishrneni 6.6 98
V. Monthly Pay Bilis:-
( i ) Ins t r , jct'cns f^r preparation 6,17 105
of pay Bills
( i i ) Absentee statements 6.19 110
(lii) Increments 6.21 111
(iv) Arre^'Tpay biUs 6.23 111
(v) Acquirtance roll 6.24 113
Chapter Subject Rules Pages
(vi) Diibursementofiiioncyh
drawn on tnontliiy bills 6.26 113
(vii) Record of service 6.27 115
(viii) Travelling Alluwt^ivC 6.32 118
Chapter VII-CONTINGENCIES
i. Liiivducioiy 7.1 123
II. Classification of charges 7.3 123
HI. General Rules 7.4 124
IV. Special Rules relating to particular
kinds of contingencies and other
expenditure
(i) Contract contingencies 7.8 129
(ii) Coynterslgned Contingency 7.10 130
(iii) Charges r?2"Jhtcd by scale- •
and i'p^jcial corjiingencies 7.13-A 133
(iv) Fully vouched contingencies 7.14 134
V. Record ofContingent Expenditure
(i) Contingent Register 7.15 134
(ii) Bills for contingent charges 7.18 136
VI. Preservation, Cancellation and
Destruction of Sub-vouchers 7.23 139
V n . Permanent Advance 7.26 140
VIII. Inspecting Officers^s Bills 7.29 142
IX. Inter Departmental Transfers 7.30 142
X. Responsibility p f t h e Drawing Officer 7.31 143
XI. Responsibility of Con trolling Officer 7.33 144
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Chapter - Subject Rules Pages
X n . Special Rules relating to certain
t j ^ e s of contingencies 7.34
1. Advertisements 7.35
2. Allowances to Jurors or
Assessors 7.36 146
3. Anti-Rabic Treatment 737 147
4. Bicycles 7.38 147
5. Camp Equipment 7.39 147
6. Carpets 7.40 147
7. Conveyance hire lu nou-Gozetted
or inferior Government servants l. A \ 147
8. Dak-Carriage of 7.42 148
9. Decoration of G^^vemment
buildings 7.43 148
10. Electric installations 7.44 149
11. Freight and demurrage 7.45 149
12. Furniture 7.46 149
13. Government Gazette
subscription to 7.47 151
14. Jeeps and vehicles 7.48 152
15. Medical Oflicer's Fees etc. 7.49 152
16. Postage and Telegrams 7.50 153
17. Printing 7.51 156
18. Publications . 7,52 157
19. Remittance of money for State
requirements within and outside
the State 7.53 163
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Chapter Subject Rules Paaes
20. Rewards 7.54 165
21. Secret S'^rvice Expenditure 7.55 166
22. Section Wriiting and Copying 7.56 167
23. Service Postage Stamps 7.57 167
24. Stationery 7.58 i68
25. Stores 7.59 170
26. Stoves and fuel for winter. 7.60 170
27. Taxes 7.61 171
28. Telegraphic Addresses .7.62 171
29. Telephonic charges 7.63 171
30. Typewriters, Calculating
Machines, Duplicators and
Cyclostyle Machines 7.64 173
31. Undertrial Prisoners-Diet of 7.65 174
32. Uniforms. Belts and Badges 7.66 175
-33. Witness-Diet and T.A. of 7.67 175
34, Decretal amo'ints-payment of 7.68 175
Chapter VIIl-STORES
I. General Rules
(i) Introductory 8.1 184
(u) Authorities competent
to purchase stores 8.2 184
(iii) Forecast of requirements
for time of purchase 8.4 186
(iv) Rules and instructions
governing the purchase
and acquiring of stores 8.5 186
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Chapter Subject Rules Pages
(v) Acceptance of tenders 8.6 198
(vi) Agreement for the supply
of stores 8.7 198
(vii) Payment for stores supplied 8.9 200
(viii) Examination of contracts by-
• the Accountant General 8.10 201
(be) Tender and Agreement Form 8.11 201
(x) Claims in respect of imported
stores, lost or damaged 8.12 202
II. Custody-of Accounts of stores
(i). General 8.13 202
(ii) Dead stock 8.16 203
(iii) Other stores -8.17 205
(iv) Valuation of stores 8.21 206
(v) Receipts and disposal of stores 8.23 207
(vi) "Periodical inspection of stores 8.27 209
(vii) Verification of stores 8.28 -209
(viii) Discrepancies found on
verification of stores 8.30, 210
- (ix) Sale and disposal of stores and
write off of losses of stores 8.31 211
HI. Audit of Accounts of Stores
and Stock '
IV. Inclusion of Stores Accounts in
Appropriation Accounts (deleted) 8.33 212
Chapter IX-WORKS:-
(i) Introductory 9.1 .221
(ii) General Rules 9.2 ' 222
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Chapter Subject Rules Pages
(iii) Works under the administrative
control of the Public Works
Department 9.8 224
(iv) Miscellaneous Rules 9.14 228
Chapter X-MISCELLANEOUS EXPENDITURE
I. General 10.1 238
II. Refunds of Revenue lOJ 238
III. Discount on Stamps 10.11 242
IV. Fees to Registrars and Sub-Registrars 10.12 243
V. Fees to Pleaders J0.13 243
VI. Scholarship and Stipends 10.14 243
VI-A. National and National Loan
Scholarships IO.147A 244
VII. Expenses on Special Occasions 10.15 246
VIII. Aid on OccaSsions ofNatura!
Calamities 10.16 247
IX. Compensation for Land 10.17 248
X. Discretionary Grants 10.18 248
XI. Grants-in-Aid 10.19 248
Chapter XI-LOCAL FUNDS
I. Introductory 11.1 263
II. Grants to Local Bodies 113 264
III. Loans to Local Bodies 11.4 264
IV. Charges recoverable from
Local Bodies 11.5 264
I •
V. Powers of incurring and
sanctioning expenditure 11.7 • 265
VI. Maintenance of accounts at
the Treasuries _ 11.8 ' 265
VII. Plus and Minus Memorandum 11.10 266
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Clhapier Subject Rules Pages
Vni Verification of Balarices 11.11 266
IX. Attachment orders issued by
Civil Courts 11.12 267
X. Adjustment of contribulions
payable to/by Local Bodies 11.13 267
XI. Miscellaneous
(a) Opening of new local ftxnds 11.16 268
(b) Service Postage Stamps - 11.17 268
(c) Pass Books 11.18 268
- XII. Audit of Accounts 11.19 268
Cbap'ter XII-SERVICE FUNDS
I. General Rules 12.1 270
II. General and Contributory
Provident Funds 12.7 271
III. State Insurance Fund - 12.8 272
(1) Receipts 12.9 272
(ii) Payment of Policies 12.10 .:.73
(iii) [Link] of Surrender value 12.12 273
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(iv) Refund of Premia 12.13 273
Chapter XIII-DEPOSITS
I. Introductory 13.1 275
II. ClassificationofCivilDeposits 13.2 275
III. Revenue Deposits 13.4 276
IV. Civil and Criminal Courts Deposits 13.5 277
V. Personal Deposit 13.6 219'
VL, Public Works Deposit 13.9 281
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Chapter Subject Rules Pages
VII. Trust Interest Funds 13.10 281
VIII. Deposits for work done for public
bodies or private individuals 13.11 281
IX. Unclaimed Provident Fund Deposit 13.12 .283
(a) Deposit of Local Funds 13.13 283
(b) Other Dep«)sit Accounts 13.14 283
X. Limitations 13.15' 284
XI. Repayment 13.19 286
XII. Lapses Annual Accounts 13.22 288
XIV. Agreement with Treasury 13.27 290
Chapter XIV-LOANS AND ADVANCES .
I. General
(i) Sanctions 14.1 292
(ii) Estimates 14.2 292
(iii) Main Classes of Loans
and advances 14.3 292
II. Loans lo Local Bodies etc
(i) Issue of loan money 14.5 297
(ii) Conditions of repayment 14.6 298
(iii) Interest 14.7 299
(iv) Default in payment 14.8 . 300
(v) Irrecoverable Loans and
Advances 14.10 300
(vi) Accounts and Control 14.12 301
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Chapter " Subject ' Rules Pages
(vii) Plus and minus memorandum
maintained at tiie Treasury in
connection with Advances to
Muncipalitiesetc. 14.13 303
(viii) Annual Review 14.14 304
(ix) Utilisation of Loans 14.14-A 304
II-A. Loans to public Sector
Undertakings 14.14-B 306
i n . Loans and Advances to
Government Servants
(i) General 14.15 306
(ii) House Building Advance 14.13 300
(iii) Advance for repairs of houses 14.19 324
(iv) Advance for purchase of
Motor Cars 14.20 325
(v) Advance for purchase of
Miotor Cycles 14.22 332
(vi) Festival Advance I4.22-A 333
(vii) Bicycle Advance 14.22-B 335
(viii) Advances to the families of
Government Servants who die
while in service 14.22-C 338
rV. Aid to Agriculturist and rules
relating to grant of aid for Land
Improvement 14.23 340
V. House Building advance to
Silkworm Rearers 14.24 340
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Chapter Subject Rules Pages
VL Other Advances 14.25 341
vn. Conditions of Repayment ' 14.30 346
VIIL Forms of Drawing and Repaying
of Advances 14.31 346
(2) Clearance of Advance 14.34 347
(3) Exemption of Stamp Duty on
Mortgage Deeds 14.35 347
Chapter XV-BILL REMITTANCES (HUNDIES)
I. Introductory 15.1 350
II. Money Limit 15.4 350
HI. Issue ofHundies by Treasury
Officers 15.5 350
IV. Issue of Duplicate ofHundies 15.8 352
V. Exchange of Hundies 15.11 353
VI. Unpaid Hundies 15.12 354
VII. Lapse ofHundies 15.13 354
Chapter XVI-BUDGET
I. Introductory 16.1 355
II. Appropriation of funds necessary
to make sanction to expenditure
effective. 16.7 356
I II. Communication of Budget Allotments 16.11 357
IV. Indication of source of appropriation
in the sanction to expenditure ' 16.12 357
V. Application for sanction to
expenditure 16.16 358
VL. Incurring of expenditure in
anticipation of funds 16.17 358
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VII. Expenditure not provided for 16.18 359
VIII. Incurring of expenditure in excess
of the provisions in the estimates 16.19 359
IX. Inevitable payments and general
rules for Payment against sanctioned
grants 16.20 359
X. Provision for expenditure in respect
of work undertaken by one Depart-
ment on behalf of another 16.25 361
Chapter XVIl-POWERS OF SANCTION
I. Powers of various authorities in the
matter of financial sanctions
(i) Powers of Administrative
Departments 17.1 367
(ii) Powers of subordinate
authorities 17.2 367
II. Powers in regard to certain special
matters
(i) Write off of losses 17.3 367
(ii) Remission of disallowances by
• Audit in writing off overpayments
made to Government Servants 17.4 368
iil. Communication ofsaiWitions 17.5 - 369
IV. Signing of sanctipHS 17-10 372
V. Date of effect of sanctions, 17.11 373
VI. Retrospective sanctions 17.13 373
VII. Lapse of sanctions 17.14 373
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Chapter XVIIl-MISCELLANEOUS SUBJECTS
(i) General Rules and Principles
- relating to contracts 18.1 376
(ii) Grants ofland, assignments of
Revenue and other concessions etc. 18.2 376
(iii) Destruction of official records
connected with accounts 18.3 376
(iv) Securities from Government officials 18.4 376
(v) Consent and Delegation Orders 18.16 383
(vi) Contingencies, Stores, Fees,
Compensation and Remunera-
tions, etc. 18.17 383
(vii) Write off of losses etc. 18.18 383
(viii) Indent for forms 18.19 384
(be) Jeeps and vehicles 18.20 385
(x) Transfer of Government
assets to autonomous bodies 18.21 385
(xi) Insurance of Government
property 18.22 386
(xii) Rules regulating recovery
of departmental outstandings
from Government servants . 18.23 386