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CMA Final · Direct Tax Laws and International Taxation · Black Money Act, 2015

Under section 32 of the Black Money Act, 2015, which statement about recovery from an assessee's salary through the employer is correct?

The employer can be required to deduct from payments to the assessee an amount sufficient to meet the tax arrear and remit it to the Central Government, but any part of salary exempt from attachment under section 60 of the Code of Civil Procedure, 1908 stays exempt.

  1. AThe employer may be required to deduct an amount sufficient to meet the tax arrear, but salary exempt from attachment under section 60 of the Code of Civil Procedure, 1908 is exempt from the requisitionCorrect
  2. BThe entire salary can be attached with no exemption
  3. COnly the Principal Commissioner can make the requisition, never the Tax Recovery Officer
  4. DThe employer is not bound to pay the deducted sum to the Central Government

Explanation

Section 32(1) lets the Assessing Officer or Tax Recovery Officer require the employer to deduct an amount sufficient to meet the arrear, and section 32(2) obliges the employer to comply and pay it to the Central Government. Section 32(3) exempts salary that is exempt from attachment under section 60 of the Code of Civil Procedure, 1908.

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