Section 416: other modes of recovery

When this section applies

Where no certificate has been drawn up under Section 413, the Assessing Officer may recover the tax by any one or more of the modes provided in this section.

Where a certificate has been drawn up under Section 413, the Tax Recovery Officer may, without prejudice to the modes specified in that section, also recover the tax by any one or more of the modes in this section.

Deduction from salary

If an assessee receives income chargeable under the head "Salaries", the Assessing Officer or Tax Recovery Officer may require the person paying that salary to deduct, from any payment made after the requisition, any arrears of tax due from the assessee, and pay the deducted sum to the credit of the Central Government (or as the Board directs). This does not apply to any part of the salary exempted from attachment under Section 60 of the Code of Civil Procedure, 1908.

Garnishee notice on a person who owes money to the assessee

The Assessing Officer or Tax Recovery Officer may, by written notice, require any person from whom money is due or may become due to the assessee, or who holds or may hold money for or on account of the assessee, to pay that money (or as much as is sufficient to cover the arrears) to the Assessing Officer or Tax Recovery Officer, either immediately or by a time specified in the notice.

• The notice can be issued even where the money is held jointly with another person; the joint holders' shares are presumed equal until proved otherwise
• A copy of the notice must be forwarded to the assessee, and to all joint holders in a joint account
• It is not necessary to produce any pass book, deposit receipt, policy or similar document before payment is made under the notice, regardless of any contrary rule or practice
• Any claim on the relevant property arising after the date of the notice is void as against the demand in the notice
• A person who objects on oath that the sum is not due to the assessee, or that he holds no money for the assessee, is not required to pay under the notice - but if that statement is later found false in a material particular, he becomes personally liable to the extent of his own liability to the assessee, or the assessee's liability under the Act, whichever is less
• The Assessing Officer or Tax Recovery Officer may amend, revoke or extend the time of any such notice at any time
• A receipt must be given for any amount paid, discharging the payer's liability to the assessee to that extent
• A person who discharges a liability to the assessee after receiving the notice becomes personally liable to the extent of that liability, or the assessee's liability under the Act, whichever is less
• If the person given the notice fails to pay as required, he is deemed to be an assessee in default for that amount, recoverable in the same manner as an arrear of tax under Sections 413 to 415, and the notice has the same effect as an attachment of a debt under Section 413

Application to a court and distraint of movable property

The Assessing Officer or Tax Recovery Officer may apply to the court in whose custody there is money belonging to the assessee, for payment of the entire amount of that money, or, if it exceeds the tax due, for an amount sufficient to discharge the tax.

The Assessing Officer or Tax Recovery Officer may, if authorised by an income-tax authority not below the rank of Commissioner by general or special order, recover arrears by distraint and sale of the assessee's movable property in the prescribed manner.

Frequently asked questions