PROCEDURE FOR RECOVERY OF PROCEDURE FOR RECOVERY OF TAX.TAX.

THE SECOND SCHEDULE TO THE SECOND SCHEDULE TO INCOME TAX ACT,1961. INCOME TAX ACT,1961.

GENERAL PROVISIONS/RULES:GENERAL PROVISIONS/RULES:

1. Definitions – In this Schedule ,unless the context otherwise requires -

a) “Certificate” means the certificate drawn up by the Tax Recovery Officer under section 222 in respect of any assessee referred to in that section;

b) “defaulter” means the assessee mentioned in the certificate;

c) “execution” ,in relation to a certificate, means recovery of arrears in pursuance of the certificate;

d) “movable property” includes growing crops;

GENERAL PROVISIONS – GENERAL PROVISIONS – CONTD.CONTD.

e.e. ““officer” means a person authorized to make an attachment or sale under this Schedule;

f. “rule” means a rule contained in this Schedule;g. “share in a corporation” includes stock, debenture-

stock, debentures or bonds.

2. Issue of Notice.3. When certificate may be executed.4. Modes of recovery.5. Interest, costs and charges recoverable.6. Purchaser’s title.7. Suit against purchaser not maintainable on

ground of purchase being made on behalf of plaintiff.

GENERAL PROVISIONS – GENERAL PROVISIONS – CONTD.CONTD.

8.8. Disposal of proceeds of execution.Disposal of proceeds of execution.

9.9. General bar to jurisdiction of civil courts, save General bar to jurisdiction of civil courts, save where fraud alleged.where fraud alleged.

10.10. Property exempt from attachment.Property exempt from attachment.

11.11. Investigation by Tax Recovery Officer.Investigation by Tax Recovery Officer.

12.12. Removal of attachment on satisfaction or Removal of attachment on satisfaction or cancellation of certificate.cancellation of certificate.

13.13. Officer entitled to attach and sell.Officer entitled to attach and sell.

14.14. Defaulting purchaser answerable for loss on resale.Defaulting purchaser answerable for loss on resale.

15.15. Adjournment or stoppage of sale.Adjournment or stoppage of sale.

GENERAL PROVISIONS – GENERAL PROVISIONS – CONTD.CONTD.

16.16. Private alienation to be void in certain cases.Private alienation to be void in certain cases.

17.17. Prohibition against bidding or purchase by officer.Prohibition against bidding or purchase by officer.

18.18. Prohibition against sale on holidays.Prohibition against sale on holidays.

19.19. Assistance by police.Assistance by police.

19A.Entrustment of certain functions by Tax Recovery 19A.Entrustment of certain functions by Tax Recovery Officer.Officer.

GENERAL PROVISIONS – GENERAL PROVISIONS – CONTD.CONTD.

WARRANT.WARRANT.

20.20. Warrant.Warrant.

21.21. Service of copy of warrant.Service of copy of warrant.

22.22. Attachment.Attachment.

23.23. Property in defaulter’s possession.Property in defaulter’s possession.

24.24. Agricultural produce.Agricultural produce.

25.25. Provisions as to agricultural produce under Provisions as to agricultural produce under attachment.attachment.

26.26. Debts and shares, etc.Debts and shares, etc.

27.27. Attachment of decree.Attachment of decree.

28.28. Share in movable property.Share in movable property.

29.29. Salary of Government servants.Salary of Government servants.

GENERAL PROVISIONS – GENERAL PROVISIONS – CONTD.CONTD.

30.30. Attachment of negotiable instrumentAttachment of negotiable instrument..31.31. Attachment of property in custody of court or Attachment of property in custody of court or

public officer.public officer.

32.32. Attachment of partnership property.Attachment of partnership property.

33.33. Inventory.Inventory.

34.34. Attachment not to be excessive.Attachment not to be excessive.

35.35. Seizure between sunrise and sunset.Seizure between sunrise and sunset.

36.36. Power to break open doors , etc.Power to break open doors , etc.

GENERAL PROVISIONS – GENERAL PROVISIONS – CONTD.CONTD.

37.37. Sale.Sale.

38.38. Issue of proclamation.Issue of proclamation.

39.39. Proclamation how made.Proclamation how made.

40.40. Sale after fifteen days.Sale after fifteen days.

41.41. Sale of agricultural produce.Sale of agricultural produce.

42.42. Special provisions relating to growing crops.Special provisions relating to growing crops.

43.43. Sale to be by auction.Sale to be by auction.

44.44. Sale by public auction.Sale by public auction.

45.45. Irregularity not to vitiate sale,but any person Irregularity not to vitiate sale,but any person injured may sue.injured may sue.

46.46. Negotiable instruments and shares in a Negotiable instruments and shares in a corporation.corporation.

47.47. Order for payment of coin or currency notesOrder for payment of coin or currency notes to theto the Assessing Officer.Assessing Officer.

SALE.

GENERAL PROVISIONS – GENERAL PROVISIONS – CONTD.CONTD.

48.48. Attachment.Attachment.49.49. Service of notice of attachment.Service of notice of attachment.50.50. Proclamation of attachment.Proclamation of attachment.51.51. Attachment to relate back from the date of service Attachment to relate back from the date of service

of notice.of notice.

SALE.SALE.52.52. Sale and proclamation of sale.Sale and proclamation of sale.53.53. Contents of proclamation.Contents of proclamation.54.54. Mode of making proclamation.Mode of making proclamation.55.55. Time of sale.Time of sale.56.56. Sale to be by auction.Sale to be by auction.57.57. Deposit by purchaser and resale in default.Deposit by purchaser and resale in default.

ATTACHMENT AND SALE OF IMMOVABLE PROPERTY

GENERAL PROVISIONS – GENERAL PROVISIONS – CONTD.CONTD.

58.58. Procedure in default in payment.Procedure in default in payment.

59.59. Authority to bid.Authority to bid.

60.60. Application to set aside sale of immovable property Application to set aside sale of immovable property on deposit.on deposit.

61.61. Application to set aside of immovable property on Application to set aside of immovable property on ground of non-service of notice or irregularity.ground of non-service of notice or irregularity.

62.62. Setting aside sale where defaulter has no saleable Setting aside sale where defaulter has no saleable interest.interest.

63.63. Confirmation of sale.Confirmation of sale.

64.64. Return of purchase money in certain cases.Return of purchase money in certain cases.

65.65. Sale certificate.Sale certificate.

66.66. Postponement of sale to enable defaulter to raise Postponement of sale to enable defaulter to raise amount due under certificate.amount due under certificate.

67.67. Fresh proclamation before re-sale.Fresh proclamation before re-sale.

GENERAL PROVISIONS – GENERAL PROVISIONS – CONTD.CONTD.

68.68. Bid of co-sharer to have preference.Bid of co-sharer to have preference.68A. Acceptance of property in satisfaction of amount 68A. Acceptance of property in satisfaction of amount

due from the defaulter.due from the defaulter.68B. Time limit for sale of attached immovable 68B. Time limit for sale of attached immovable

property.property.

APPOINTMENT OF RECEIVER.APPOINTMENT OF RECEIVER.

69. Appointment of receiver for business.69. Appointment of receiver for business.70.70. Appointment of receiver for immovable property.Appointment of receiver for immovable property.71.71. Powers of receiver.Powers of receiver.72.72. Withdrawal of management.Withdrawal of management.73.73. Notice to show cause.Notice to show cause.74.74. Hearing.Hearing.75.75. Custody pending hearing.Custody pending hearing.

GENERAL PROVISIONS – GENERAL PROVISIONS – CONTD.CONTD.

76.76. Order of detention.Order of detention.

77.77. Detention in and release from prison.Detention in and release from prison.

78.78. ReleaseRelease

79.79. Release on ground of illness.Release on ground of illness.

80.80. Entry into dwelling house.Entry into dwelling house.

81.81. Prohibition against arrest of women or minors, etc.Prohibition against arrest of women or minors, etc.

GENERAL PROVISIONS – GENERAL PROVISIONS – CONTD.CONTD.

82.82. Power to take evidence.Power to take evidence.83.83. Continuance of certificate.Continuance of certificate.84.84. Procedure on death of defaulter.Procedure on death of defaulter.85.85. Appeals.Appeals.86.86. Review.Review.87.87. Recovery from surety.Recovery from surety.88.88. Penalties.Penalties.89.89. Subsistence allowance.Subsistence allowance.90.90. FormsForms91.91. Power to make rules.Power to make rules.92.92. Saving regarding charge.Saving regarding charge.93.93. Continuance of certain pending proceedings and Continuance of certain pending proceedings and

power to remove difficulties.power to remove difficulties.94.94. Officers deemed to be acting judicially.Officers deemed to be acting judicially.

MISCELLANEOUS.

THE THIRD SCHEDULE TO INCOME THE THIRD SCHEDULE TO INCOME TAX ACT,`1961.TAX ACT,`1961.

Where any distraint and sale of movable Where any distraint and sale of movable property are to be effected by any Assessing property are to be effected by any Assessing Officer or Tax Recovery Officer authorized Officer or Tax Recovery Officer authorized for the purpose, such distraint and sale shall for the purpose, such distraint and sale shall be made , as far as may be , in the same be made , as far as may be , in the same manner as attachment and sale of any manner as attachment and sale of any movable property attachable by actual movable property attachable by actual seizure, and the provisions of the Second seizure, and the provisions of the Second Schedule relating to attachment and sale Schedule relating to attachment and sale shall , so far as may be , apply in respect of shall , so far as may be , apply in respect of such distraint and sale.such distraint and sale.

DISTRAINT AND SALE.