Skip to content

CMA Final · Direct Tax Laws and International Taxation · Collection, Recovery and Refund of Tax

A Tax Recovery Officer drawing up a recovery certificate cannot recover the whole amount from property within his own jurisdiction, though the assessee has property in the jurisdiction of another Tax Recovery Officer. What may he do under the Income-tax Act, 2025?

He may send the certificate, or a certified copy stating the amount to be recovered, to the Tax Recovery Officer having jurisdiction over the other property. That officer then proceeds to recover the amount as if he had drawn up the certificate himself.

  1. ASend the certificate or a certified copy specifying the amount to be recovered to the other Tax Recovery Officer, who then proceeds to recover itCorrect
  2. BClose the case and write off the balance
  3. CWait for the assessee to move property into his jurisdiction
  4. DOnly refer the matter to the Board, who must recover it directly

Explanation

Section 414(2) allows the officer, where he cannot recover the entire amount or considers it necessary to expedite recovery, to send the certificate or a certified copy specifying the part to be recovered to the Tax Recovery Officer of the other jurisdiction. That officer then recovers as if he had drawn up the certificate. Writing off or waiting is not provided.

Did you get it right without looking?

One question tells you little. A timed set on Collection, Recovery and Refund of Tax shows your real accuracy, how long you take and where you lose marks.

Practise Collection, Recovery and Refund of TaxFree diagnostic mock

More Collection, Recovery and Refund of Tax questions