Chapter XIX - Collection and Recovery of Tax
Section 414
Section 414: which Tax Recovery Officer handles recovery
Section 414 identifies which Tax Recovery Officer has jurisdiction to act on a Section 413 certificate, and allows the certificate (or a certified copy) to be sent to another Tax Recovery Officer when the assessee's property is spread across more than one jurisdiction.
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This article is for general information. Refer to the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the Taxation and Other Laws (Amendment) Act, 2026 for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) For the purposes of section 413, the Tax Recovery Officer shall be— (a) the Tax Recovery Officer within whose jurisdiction the assessee carries on his business or profession or has the principal place of his business or profession; or (b) the Tax Recovery Officer within whose jurisdiction the assessee resides or any of his movable or immovable property is situated, the jurisdiction for this purpose being the jurisdiction assigned to the Tax Recovery Officer under the orders or directions issued by the Board, or by any income-tax authority not below the rank of Commissioner who is authorised in this behalf by the Board in pursuance of section 241.
(2) Where an assessee has property within the jurisdiction of more than one Tax Recovery Officer and the Tax Recovery Officer by whom the certificate is drawn up— (a) is not able to recover the entire amount by sale of the property, movable or immovable, within his jurisdiction; or (b) is of the opinion that, for the purpose of expediting or securing the recovery of the whole or any part of the amount under this Part, it is necessary so to do, he may send— (i) the certificate; or (ii) a copy of the certificate certified in the manner as may be prescribed and specifying the amount to be recovered, where only a part of the amount is to be recovered, to a Tax Recovery Officer referred to in sub-section (1)(b) and, thereupon, such officer shall also proceed to recover the amount under this Part as if the certificate or copy thereof had been drawn up by him.
Introduction
Section 414 allocates recovery-certificate jurisdiction by business, residence or location of property. If property spans jurisdictions, the officer who drew the certificate may send it or a certified part-amount copy to another officer when recovery needs to be secured or expedited.
Key takeaways
Jurisdiction links
Business location, residence and location of property can determine the officer.
Multiple areas
A certificate or certified copy can be sent to another Tax Recovery Officer when subsection (2) conditions are met.
Part amount
A certified copy can specify the amount to recover if only part is sent.
Business-location jurisdiction
For a section 413 certificate, the Tax Recovery Officer may be the officer for the area where the assessee carries on business or profession, or has its principal place of business or profession. The jurisdiction must be assigned under the relevant Board or authorised authority directions.
Residence or property jurisdiction
The alternative connection is the assessee’s residence or the location of any movable or immovable property. This allows recovery to follow property in a different area where the statutory jurisdiction has been assigned.
Sending a certificate across jurisdictions
Where property spans more than one officer’s jurisdiction, the drawing officer may send the certificate if local property cannot satisfy the entire amount or transfer is needed to expedite or secure recovery. A certified copy must specify the part amount if only part is to be recovered; the receiving officer may then proceed as if that certificate or copy were drawn up by him.
Step-by-step flow for identifying the Tax Recovery Officer under Section 414
- 1
Which Tax Recovery Officer can act on the Section 413 certificate?
Under Section 414(1): (a) the officer with jurisdiction where the assessee carries on business or profession or has its principal place; or (b) the officer with jurisdiction where the assessee resides or where any of his movable or immovable property is situated.
- 2
How is that jurisdiction fixed?
It is the jurisdiction assigned by orders or directions of the Board, or of an income-tax authority not below the rank of Commissioner authorised by the Board under Section 241.
- 3
Does the assessee have property within the jurisdiction of more than one Tax Recovery Officer?
- No: The officer who drew up the certificate recovers within his own jurisdiction.
- Yes: Go to the next step.
- 4
Is either condition in Section 414(2) met?
(a) The officer cannot recover the entire amount by selling property within his jurisdiction; or (b) he considers it necessary to send the certificate to expedite or secure recovery.
- No: Recovery continues with the officer who drew up the certificate.
- Yes: Go to the next step.
- 5
Send the certificate
He sends the certificate, or a copy certified in the prescribed manner that specifies the amount where only part is to be recovered, to a Tax Recovery Officer referred to in Section 414(1)(b). That officer then recovers as if he had drawn up the certificate himself.
Practical checklist
Do
- Map the assessee’s business, residence and property locations to the relevant officers.
- Check whether a transferred certified copy specifies only part of the arrears.
Avoid
- Do not assume a certificate can operate only within the issuing officer’s original area.
Illustrative example
Worked example: business in one city, land in another
Hypothetical facts (illustration only, not a real taxpayer): A proprietor carries on business in Pune and owns land in Nagpur. A Tax Recovery Officer in Pune draws up a certificate for assumed arrears of ₹30,00,000. Sale of movable property in Pune is assumed to realise ₹12,00,000.
Certificate officer
The Pune officer can act because the business is carried on within his jurisdiction (Section 414(1)(a)).
Shortfall
₹30,00,000 − ₹12,00,000 = ₹18,00,000 cannot be recovered from property in Pune, so Section 414(2)(a) is met.
Send a certified copy
Only part of the amount is left, so he sends a copy of the certificate certified in the prescribed manner, specifying ₹18,00,000, to the Nagpur officer, who has jurisdiction where the land is situated (Section 414(1)(b)).
Recovery in Nagpur
The Nagpur officer proceeds to recover ₹18,00,000 as if he had drawn up the certificate.
Outcome
- The remaining ₹18,00,000 is pursued by the Nagpur Tax Recovery Officer.
- The amount recovered in Pune plus the amount specified in the copy equals the original ₹30,00,000.
Frequently asked questions
Which Tax Recovery Officer can act on a recovery certificate?
Either the one within whose jurisdiction the assessee carries on business or has his principal place of business/profession, or the one within whose jurisdiction the assessee resides or his movable/immovable property is situated.
Can a recovery certificate be sent to a Tax Recovery Officer in another area?
Yes. Under Section 414(2), if the assessee has property in more than one jurisdiction and full recovery is not possible locally (or transfer would help secure recovery), the certificate or a certified copy can be sent to a Tax Recovery Officer with jurisdiction over that other property.
Need help applying this provision to your situation?
Get help with tax recovery proceedings across jurisdictionsLast updated 9 October 2026