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

Under the Income-tax Act, 2025, which statement about recovery of tax through Tax Recovery Officers (TROs) is correct?

A TRO unable to recover the whole amount from property within his own jurisdiction may send the certificate, or a certified copy for the part due, to another TRO where the assessee resides or has property, who then recovers it as if he had drawn it up.

  1. AA TRO who cannot recover the full amount from property in his jurisdiction may send the certificate or a copy to another TRO where the assessee resides or has propertyCorrect
  2. BOnly the TRO where the assessee carries on business may ever recover the tax
  3. CThe Board may forward a foreign country's recovery certificate only if the person is a non-resident with no property in India
  4. DA TRO must always return an uncollected certificate to the Assessing Officer without sending it elsewhere

Explanation

Section 414(2) lets the TRO send the certificate, or a certified copy for part of the amount, to a TRO within whose jurisdiction the assessee resides or has property, if recovery in his own area is insufficient or expediting is needed. Section 418 covers foreign certificates for a resident or person having property in India, so the third option is wrong.

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