Income Tax Act, 2025
Section 4: Subs. by s. 54, ibid., for “Income-tax Officer” (w.e.f. 11988).
4. Subs. by s. 54, ibid., for “Income-tax Officer” (w.e.f. 11988).
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4. Mode of recovery.—If the amount mentioned in the notice is not paid within the time specified
therein or within such further time as the Tax Recovery Officer may grant in his discretion, the Tax
Recovery Officer shall proceed to realise the amount by one or more of the following modes:—
(a) by attachment and sale of the defaulter’s movable property;
(b) by attachment and sale of the defaulter’s immovable property;
(c) by arrest of the defaulter and his detention in prison;
(d) by appointing a receiver for the management of the defaulter’s movable and immovable
properties.
5. Interest, costs and charges recoverable.—There shall be recoverable, in the proceedings in
execution of every certificate,—
(a) such interest upon the amount of tax or penalty or other sum to which the certificate relates as
is payable in accordance with sub-section (2) of section 220, and
(b) all charges incurred in respect of—
(i) the service of notice upon the defaulter to pay the arrears, and of warrants and other
processes, and
(ii) all other proceedings taken for realising the arrears.
6. Purchaser’s title.—(1) Where property is sold in execution of a certificate, there shall vest in the
purchaser merely the right, title and interest of the defaulter at the time of the sale, even though the
property itself be specified.
(2) Where immovable property is sold in execution of a certificate, and such sale has become
absolute, the purchaser’s right, title and interest shall be deemed to have vested in him from the time
when the property is sold, and not from the time when the sale becomes absolute.
7. Suit against purchaser not maintainable on ground of purchase being made on behalf of
plaintiff.—(1) No suit shall be maintained against any person claiming title under a purchase certified by
the Tax Recovery Officer in the manner laid down in this Schedule, on the ground that the purchase was
made on behalf of the plaintiff or on behalf of someone through whom the plaintiff claims.
(2) Nothing in this section shall bar a suit to obtain a declaration that the name of any purchaser
certified as aforesaid was inserted in the certificate fraudulently or without the consent of the real
purchaser, or interfere with the right of a third person to proceed against that property, though ostensibly
sold to the certified purchaser, on the ground that it is liable to satisfy a claim of such third person against
the real owner.
1[8. Disposal of proceeds of execution.—(1) Whenever assets are realised by sale or otherwise in
execution of a certificate, the proceeds shall be disposed of in the following manner, namely:—
(a) they shall first be adjusted towards the amount due under the certificate in execution of which
the assets were realised and the costs incurred in the course of such execution;
(b) if there remains a balance after the adjustment referred to in clause (a), the same shall be
utilised for satisfaction of any other amount recoverable from the assessee under this Act which may
be due on the date on which the assets were realised; and
by attachment and sale of the defaulter’s movable property;
by attachment and sale of the defaulter’s immovable property;
by arrest of the defaulter and his detention in prison;
by appointing a receiver for the management of the defaulter’s movable and immovable
properties.
5. Interest, costs and charges recoverable.—There shall be recoverable, in the proceedings in
execution of every certificate,—
such interest upon the amount of tax or penalty or other sum to which the certificate relates as
is payable in accordance with sub-section
of section 220, and
all charges incurred in respect of—
the service of notice upon the defaulter to pay the arrears, and of warrants and other
processes, and
all other proceedings taken for realising the arrears.
6. Purchaser’s title.—
Where property is sold in execution of a certificate, there shall vest in the
purchaser merely the right, title and interest of the defaulter at the time of the sale, even though the
property itself be specified.
Where immovable property is sold in execution of a certificate, and such sale has become
absolute, the purchaser’s right, title and interest shall be deemed to have vested in him from the time
when the property is sold, and not from the time when the sale becomes absolute.
7. Suit against purchaser not maintainable on ground of purchase being made on behalf of
plaintiff.—
No suit shall be maintained against any person claiming title under a purchase certified by
the Tax Recovery Officer in the manner laid down in this Schedule, on the ground that the purchase was
made on behalf of the plaintiff or on behalf of someone through whom the plaintiff claims.
Nothing in this section shall bar a suit to obtain a declaration that the name of any purchaser
certified as aforesaid was inserted in the certificate fraudulently or without the consent of the real
purchaser, or interfere with the right of a third person to proceed against that property, though ostensibly
sold to the certified purchaser, on the ground that it is liable to satisfy a claim of such third person against
the real owner.
1[8. Disposal of proceeds of execution.—
Whenever assets are realised by sale or otherwise in
execution of a certificate, the proceeds shall be disposed of in the following manner, namely:—
they shall first be adjusted towards the amount due under the certificate in execution of which
the assets were realised and the costs incurred in the course of such execution;
if there remains a balance after the adjustment referred to in clause