Income Tax Act, 2025
Section 26: Debts and shares, etc.—(1) In the case of—
26. Debts and shares, etc.—(1) In the case of—
(a) a debt not secured by a negotiable instrument,
(b) a share in a corporation, or
(c) other movable property not in the possession of the defaulter except property deposited in, or
in the custody of, any court,
the attachment shall be made by a written order prohibiting,—
(i) in the case of the debt—the creditor from recovering the debt and the debtor from making
payment thereof until the further order of the Tax Recovery Officer;
1. Subs. by Act 3 of 1989, s. 54, for “and the Assessing Officer shall bear such sum as the Tax Recovery Officer shall
require in order to defray the cost of such arrangement” (w.e.f. 11989).
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(ii) in the case of the share—the person in whose name the share may be standing from
transferring the same or receiving any dividend thereon;
(iii) in the case of the other movable property (except as aforesaid)—the person in possession of
the same from giving it over to the defaulter.
(2) A copy of such order shall be affixed on some conspicuous part of the office of the Tax Recovery
Officer, and another copy shall be sent, in the case of the debt, to the debtor, in the case of the share, to
the proper officer of the corporation, and in the case of the other movable property (except as aforesaid),
to the person in possession of the same.
(3) A debtor prohibited under clause (i) of sub-rule (1) may pay the amount of his debt to the Tax
Recovery Officer, and such payment shall discharge him as effectually as payment to the party entitled to
receive the same.
27. Attachment of decree.—(1) The attachment of a decree of a civil court for the payment of money
or for sale in enforcement of a mortgage or charge shall be made by the issue to the civil court of a notice
requesting the civil court to stay the execution of the decree unless and until—
(i) the Tax Recovery Officer cancels the notice, or
(ii) the 1[Tax Recovery Officer] or the defaulter applies to the court receiving such notice to
execute the decree.
(2) Where a civil court receives an application under clause (ii) of sub-rule (1), it shall, on the
application of the 1[Tax Recovery Officer] or the defaulter and subject to the provisions of the Code of
Civil Procedure, 1908 (5 of 1908), proceed to execute the attached decree and apply the net proceeds in
satisfaction of the certificate.
(3) The 1[Tax Recovery Officer] shall be deemed to be the representative of the holder of the attached
decree, and to be entitled to execute such attached decree in any manner lawful for the holder thereof.
28. Share in movable property.—Where the property to be attached consists of the share or interest
of the defaulter in movable property belonging to him and another as co-owners, the attachment shall be
made by a notice to the defaulter prohibiting him from transferring the share or interest or charging it in
any way.
29. Salary of Government servants.—Attachment of the salary or allowances of servants of the
Government or a local authority may be made in the manner provided by rule 48 of Order 21 of the First
Schedule to the Code of Civil Procedure, 1908 (5 of 1908), and the provisions of the said rule shall, for
the purposes of this rule, apply subject to such modifications as may be necessary.
30. Attachment of negotiable instrument.—Where the property is a negotiable instrument not
deposited in a court nor in the custody of a public officer, the attachment shall be made by actual seizure,
and the instrument shall be brought before the Tax Recovery Officer and held subject to his orders.
31. Attachment of property in custody of court or public officer.—Where the property to be
attached is in the custody of any court or public officer, the attachment shall be made by a notice to such
court or officer, requesting that such property, and any interest or dividend becoming payable thereon,
may be held subject to the further orders of the Tax Recovery Officer by whom the notice is issued:
Provided that, where such property is in the custody of a court, any question of title or priority arising
between the 1[Tax Recovery Officer] and any other person, not being the defaulter, claiming to be
interested in such property by virtue of any assignment, attachment or otherwise, shall be determined by
such court.
In the case of—
a debt not secured by a negotiable instrument,
a share in a corporation, or
other movable property not in the possession of the defaulter except property deposited in, or
in the custody of, any court,
the attachment shall be made by a written order prohibiting,—
in the case of the debt—the creditor from recovering the debt and the debtor from making
payment thereof until the further order of the Tax Recovery Officer;
1. Subs. by Act 3 of 1989, s. 54, for “and the Assessing Officer shall bear such sum as the Tax Recovery Officer shall
require in order to defray the cost of such arrangement” (w.e.f. 11989).
838
in the case of the share—the person in whose name the share may be standing from
transferring the same or receiving any dividend thereon;
in the case of the other movable property (except as aforesaid)—the person in possession of
the same from giving it over to the defaulter.
A copy of such order shall be affixed on some conspicuous part of the office of the Tax Recovery
Officer, and another copy shall be sent, in the case of the debt, to the debtor, in the case of the share, to
the proper officer of the corporation, and in the case of the other movable property (except as aforesaid),
to the person in possession of the same.
A debtor prohibited under clause
of sub-rule
may pay the amount of his debt to the Tax
Recovery Officer, and such payment shall discharge him as effectually as payment to the party entitled to
receive the same.
27. Attachment of decree.—
The attachment of a decree of a civil court for the payment of money
or for sale in enforcement of a mortgage or charge shall be made by the issue to the civil court of a notice
requesting the civil court to stay the execution of the decree unless and until—
the Tax Recovery Officer cancels the notice, or
the 1[Tax Recovery Officer] or the defaulter applies to the court receiving such notice to
execute the decree.
Where a civil court receives an application under clause
of sub-rule
The 1[Tax Recovery Officer] shall be deemed to be the representative of the holder of the attached
decree, and to be entitled to execute such attached decree in any manner lawful for the holder thereof.
28. Share in movable property.—Where the property to be attached consists of the share or interest
of the defaulter in movable property belonging to him and another as co-owners, the attachment shall be
made by a notice to the defaulter prohibiting him from transferring the share or interest or charging it in
any way.
29. Salary of Government servants.—Attachment of the salary or allowances of servants of the
Government or a local authority may be made in the manner provided by rule 48 of Order 21 of the First
Schedule to the Code of Civil Procedure, 1908 (5 of 1908), and the provisions of the said rule shall, for
the purposes of this rule, apply subject to such modifications as may be necessary.
30. Attachment of negotiable instrument.—Where the property is a negotiable instrument not
deposited in a court nor in the custody of a public officer, the attachment shall be made by actual seizure,
and the instrument shall be brought before the Tax Recovery Officer and held subject to his orders.
31. Attachment of property in custody of court or public officer.—Where the property to be
attached is in the custody of any court or public officer, the attachment shall be made by a notice to such
court or officer, requesting that such property, and any interest or dividend becoming payable thereon,
may be held subject to the further orders of the Tax Recovery Officer by whom the notice is issued:
Provided that, where such property is in the custody of a court, any question of title or priority arising
between the 1[Tax Recovery Officer] and any other person, not being the defaulter, claiming to be
interested in such property by virtue of any assignment, attachment or otherwise, shall be determined by
such court.