Treasury Rules (J&K)

Introduction

Treasuries are the units of fiscal administration in the UT of J&K. They function under the Finance Department and are responsible for the receipt and payment of government money.

The J&K Treasury Code contains the rules and instructions relating to the procedure to be followed in
Treasuries.

Classification of Treasuries

Sadar Treasuries: Located at Divisional Headquarters (Jammu/Srinagar). Headed by Sadar Treasury Officer.
District Treasuries: Located at District Headquarters. Headed by District Treasury Officer (DTO).
Sub-Treasuries: Located at Tehsil/Block levels. Headed by Treasury Officer.

Key Officials

1. Drawing and Disbursing Officer (DDO)

An officer designated by the Head of the Department to draw bills and make payments on behalf of the government.

2. Treasury Officer (TO)

The officer in charge of a designated Treasury. Responsible for safe custody of cash (if banking treasury) and verification of claims.

3. Director General Accounts & Treasuries

The Head of the Department for the Accounts and Treasuries Organization in J&K.

Procedure for Payment of Money

No money can be withdrawn from the Treasury unless:

The claim is presented in the prescribed form (Bill).
It is signed by an authorized DDO.
There is a Budget Application/Grant available.
The Treasury Officer has verified the signature and the claim.

Lapse of Sanction

A sanction for any fresh charge lapses if rarely acted upon for a year. It must be renewed.

A bill not presented within 6 months of its date of issue becomes time-barred and
requires revalidation.

Receipt of Government Money

All moneys received by or tendered to Government servants on account of the revenues of the UT shall, without undue delay, be paid in full into the Treasury or the Bank.

Challan: The prescribed form used for depositing money into the Treasury/Bank.
Triplicate Challan: Used generally (Payer copy, Treasury copy, Department copy).

Responsibility for Money

Every Government servant is personally responsible for the money which passes through his hands and for the prompt record of receipts and payments.

Cash Book (Rule 2.15)

Every officer receiving money on behalf of the Government should maintain a Cash Book in Form F.C. 1.

Pages must be machine numbered.
Certificate of count of pages on the first page.
Erasures and overwriting are strictly prohibited.
Physical verification of cash at the end of each month.

Practicals & PYQs - Treasury

Part A: Practical Scenarios (10 Questions)

Q1. A DDO issues a cheque on 1st January. Up to which date is it valid?

3 months. Cheques are valid for 3 months from the date of issue (or up to 31st March, whichever is earlier for Govt cheques generally).

Q2. A bill for ₹500 is presented. What is the rule for "rounding off"?

Govt transactions are rounded off to the nearest Rupee. 50 paise and above -> Next Rupee. Less than 50 paise -> Ignored.

Q3. A bill is lost before payment. Procedure?

A Non-Payment Certificate must be obtained from the Treasury Officer before a duplicate bill can be presented.

Q4. Who authorizes a new DDO?

The Head of the Department sends the specimen signature of the DDO to the Treasury Officer (and AG).

Q5. Cash was found surplus during physical verification. Treatment?

It should be credited to the Government Account as "Miscellaneous Receipts" immediately.

Q6. An erasure was made in the Cash Book. Is it allowed?

No. Erasures are strictly prohibited. The incorrect entry should be struck out in red ink and correct entry made, attested by the DDO.

Q7. Salary bill of a department is to be presented. When?

Usually, salary bills can be presented to the Treasury few days before the end of the month, but payable on the last working day (or 1st of next month).

Q8. A pensioner has not drawn pension for 3 years. Status?

The pension payment order (PPO) lapses if not drawn for 3 years (unless revalidated).

Q9. Challan form used for depositing money. Which copy is given to payer?

The Original copy is returned to the payer as a receipt.

Q10. Who is responsible for deducting Income Tax from salary bills?

The Drawing and Disbursing Officer (DDO).

Part B: Previous Year Questions (PYQs) (10 Questions)

Q11. Who is the head of District Treasury?

District Treasury Officer (DTO) (Sometimes called Saddar Treasury Officer at Div HQ).

Q12. Cash Book should be maintained in:

Form F.C. 1.

Q13. Specimen signatures of DDO are sent to:

Treasury Officer.

Q14. The prescribed form for depositing money into Treasury is:

Challan.

Q15. Erasing of entries in Cash Book is:

Strictly Prohibited.

Q16. Physical verification of cash in chest should be done:

At the end of each month.

Q17. DDO stands for:

Drawing and Disbursing Officer.

Q18. Validity of a cheque issued by Government Treasury?

3 months.

Q19. Responsibility for the safe custody of cash in office rests with:

DDO / Cashier.

Q20. If cash is found short during verification, it is recovered from:

The official responsible (Cashier).

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