Income-tax Act,1961
Act No : 43
Section :
Other modes of recovery.
226. Other modes of recovery 1[(1) Where no certificate has been drawn up under section 222, the Assessing Officer may recover the tax by any one or more of the modes provided in this section. (1A) Where a certificate has been drawn up under section 222, the Tax Recovery Officer may, without prejudice to the modes of recovery specified in that section, recover the tax by any one or more of the modes provided in this section.] (2) If any assessee is in receipt of any income chargeable under the head "Salaries", the 2[Assessing] Officer 3[or Tax Recovery Officer] may require any person paying the same to deduct from any payment subsequent to the date of such requisition any arrears of tax due from such assessee, and such person shall comply with any such requisition and shall pay the sum so deducted to the credit of the Central Government or as the Board directs: Provided that any part of the salary exempt from attachment in execution of a decree of a civil court under section 60 of the Code of Civil Procedure, 1908 (5 of 1908), shall be exempt from any requisition made under this sub-section. (3) (i) The 4 [Assessing) Officer 5[or Tax Recovery Officer] may, at any time or from time to time, by notice in writing require any person ---------------------------------------------------------------------- 1 Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Prior to the substitution, sub-section (1), as amended by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988, read as under: "(1) Notwithstanding the issue of a certificate to the Tax Recovery Officer under section 222, the Assessing Officer may recover the tax by any one or more of the modes provided in this section." The italicised word was substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988. 2 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988. 3 Inserted, ibid, w.e.f. 1-4-1989. 4 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988. 5 Inserted, ibid, w.e.f. 1-4-1989. ------------------------------------------------------------------------ 1.672 from whom money is due or may become due to the assessee or any person who holds or may subsequently hold money for or on account of the assessee, to pay to the 1[Assessing] Officer 2[or Tax Recovery Officer] either forthwith upon the money becoming due or being held or at or within the time specified in the notice (not being before the money becomes due or is held) so much of the money as is sufficient to pay the amount due by the assessee in respect of arrears or the whole of the money when it is equal to or less than that amount. (ii)A notice under this sub-section may be issued to any person who holds or may subsequently hold any money for or on account of the assessee jointly with any other person and for the purposes of this sub-section, the shares of the joint holders in such account shall be presumed, until the contrary is proved, to be equal. (iii)A copy of the notice shall be forwarded to the assessee at his last address known to the 3[Assessing] Officer 4[or Tax Recovery Officer], and in the case of a joint account to all the joint holders at their last addresses known to the 5[Assessing] Officer 6[or Tax Recovery Officer]. (iv)Save as otherwise provided in this sub-section, every person to whom a notice is issued under this sub-section, shall be bound to comply with such notice, and, in particular, where any such notice is issued to a post office, banking company or an insurer, it shall not be necessary for any pass book, deposit receipt, policy or any other document to be produced for the purpose of any entry, endorsement or the like being made before payment is made, notwithstanding any rule, practice or requirement to the contrary. (v)Any claim respecting any property in relation to which a notice under this sub-section has been issued arising after the date of the notice shall be void as against any demand contained in the notice. (vi)Where a person to whom a notice under this sub-section is sent objects to it by a statement on oath that the sum demanded or any part thereof is not due to the assessee or that he does not hold any money for or on account of the assessee, then, nothing contained in this sub-section shall be deemed to require such person to pay any such sum or part thereof, as the case may be, but if it is discovered that such statement was false in any material particular, such person shall be personally liable to the 7[Assessing] Officer 8[or Tax Recovery Officer] to the extent of his own liability to the assessee on the date of the notice or to the extent of the assessee's liability for any sum due under this Act, whichever is less. ---------------------------------------------------------------------- 1 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988. 2 Inserted, ibid, w.e.f. 1-4-1989. 3 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988. 4 Inserted, ibid, w.e.f. 1-4-1989. 5 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988. 6 Inserted, ibid, w.e.f. 1-4-1989. 7 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988. 8 Inserted, ibid, w.e.f. 1-4-1989. ------------------------------------------------------------------------ 1.673 (vii) The 1[Assessing] Officer 2[or Tax Recovery Officer] may, at any time or from time to time, amend or revoke any notice issued under this sub-section or extend the time for making any payment in pursuance of such notice. (viii)The 3[Assessing] Officer 4[or Tax Recovery Officer] shall grant a receipt for any amount paid in compliance with a notice issued under this sub-section, and the person so paying shall be fully discharged from his liability to the assessee to the extent of the amount so paid. (ix)Any person discharging any liability to the assessee after receipt of a notice under this sub-section shall be personally liable to the 5[Assessing] Officer 6[or Tax Recovery Officer] to the extent of his own liability to the assessee so discharged or to the extent of the assessee's liability for any sum due under this Act, whichever is less. (x)If the person to whom a notice under this sub-section is sent fails to make payment in pursuance thereof to the 7[Assessing] Officer 8[or Tax Recovery Officer], he shall be deemed to be an assessee in default in respect of the amount specified in the notice and further proceedings may be taken against him for the realisation of the amount as if it were an arrear of tax due from him, in the manner provided in sections 222 to 225 and the notice shall have the same effect as an attachment of a debt by the Tax Recovery Officer in exercise of his powers under section 222. (4)The 9[Assessing] Officer 10[or Tax Recovery Officer] may apply to the court in whose custody there is money belonging to the assessee for payment to him of the entire amount of such money, or, if it is more than the tax due, an amount sufficient to discharge the tax. 11[(5) The 12[Assessing] Officer 13[or Tax Recovery Officer] may, if so authorised by the 14[Chief Commissioner or Commissioner] by general or special order, recover any arrears of tax due from an assessee by distraint and sale of his movable property in the manner laid down in the Third Schedule.] ---------------------------------------------------------------------- 1 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988. 2 Inserted, ibid, w.e.f. 1-4-1989. 3 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988. 4 Inserted, ibid, w.e.f. 1-4-1989. 5 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988. 6 Inserted, ibid, w.e.f. 1-4-1989. 7 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988. 8 Inserted, ibid, w.e.f. 1-4-1989. 9 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988. 10 Inserted, ibid, w.e.f. 1-4-1989. 11 Substituted by the Finance Act, 1965, w.e.f. 1-4-1965. 12 Substituted for 'Income-tax' by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988. 13 Inserted, ibid, w.e.f. 1-4-1989. 14 Substituted for 'Commissioner' by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. ------------------------------------------------------------------------ 1.674
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