PROCEDURE FOR RECOVERY OF TAX.

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PROCEDURE FOR RECOVERY OF TAX.
THE SECOND SCHEDULE TO INCOME TAX ACT,1961.
GENERAL PROVISIONS/RULES

• Definitions In this Schedule ,unless the
  context otherwise requires -
• Certificate means the certificate drawn up by
  the Tax Recovery Officer under section 222 in
  respect of any assessee referred to in that
  section
• defaulter means the assessee mentioned in the
  certificate
• execution ,in relation to a certificate, means
  recovery of arrears in pursuance of the
  certificate
• movable property includes growing crops

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GENERAL PROVISIONS CONTD.

• officer means a person authorized to make an
  attachment or sale under this Schedule
• rule means a rule contained in this Schedule
• share in a corporation includes stock,
  debenture-stock, debentures or bonds.
• Issue of Notice.
• When certificate may be executed.
• Modes of recovery.
• Interest, costs and charges recoverable.
• Purchasers title.
• Suit against purchaser not maintainable on ground
  of purchase being made on behalf of plaintiff.

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GENERAL PROVISIONS CONTD.

• Disposal of proceeds of execution.
• General bar to jurisdiction of civil courts, save
  where fraud alleged.
• Property exempt from attachment.
• Investigation by Tax Recovery Officer.
• Removal of attachment on satisfaction or
  cancellation of certificate.
• Officer entitled to attach and sell.
• Defaulting purchaser answerable for loss on
  resale.
• Adjournment or stoppage of sale.

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GENERAL PROVISIONS CONTD.

• Private alienation to be void in certain cases.
• Prohibition against bidding or purchase by
  officer.
• Prohibition against sale on holidays.
• Assistance by police.
• 19A.Entrustment of certain functions by Tax
  Recovery Officer.

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GENERAL PROVISIONS CONTD.

• WARRANT.
• Warrant.
• Service of copy of warrant.
• Attachment.
• Property in defaulters possession.
• Agricultural produce.
• Provisions as to agricultural produce under
  attachment.
• Debts and shares, etc.
• Attachment of decree.
• Share in movable property.
• Salary of Government servants.

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GENERAL PROVISIONS CONTD.

1. Attachment of negotiable instrument.
2. Attachment of property in custody of court or
   public officer.
3. Attachment of partnership property.
4. Inventory.
5. Attachment not to be excessive.
6. Seizure between sunrise and sunset.
7. Power to break open doors , etc.

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GENERAL PROVISIONS CONTD.
SALE.

1. Sale.
2. Issue of proclamation.
3. Proclamation how made.
4. Sale after fifteen days.
5. Sale of agricultural produce.
6. Special provisions relating to growing crops.
7. Sale to be by auction.
8. Sale by public auction.
9. Irregularity not to vitiate sale,but any person
   injured may sue.
10. Negotiable instruments and shares in a
    corporation.
11. Order for payment of coin or currency notes to
    the Assessing Officer.

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GENERAL PROVISIONS CONTD.
ATTACHMENT AND SALE OF IMMOVABLE PROPERTY

• Attachment.
• Service of notice of attachment.
• Proclamation of attachment.
• Attachment to relate back from the date of
  service of notice.
• SALE.
• Sale and proclamation of sale.
• Contents of proclamation.
• Mode of making proclamation.
• Time of sale.
• Sale to be by auction.
• Deposit by purchaser and resale in default.

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GENERAL PROVISIONS CONTD.

1. Procedure in default in payment.
2. Authority to bid.
3. Application to set aside sale of immovable
   property on deposit.
4. Application to set aside of immovable property on
   ground of non-service of notice or irregularity.
5. Setting aside sale where defaulter has no
   saleable interest.
6. Confirmation of sale.
7. Return of purchase money in certain cases.
8. Sale certificate.
9. Postponement of sale to enable defaulter to raise
   amount due under certificate.
10. Fresh proclamation before re-sale.

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GENERAL PROVISIONS CONTD.

• Bid of co-sharer to have preference.
• 68A. Acceptance of property in satisfaction of
  amount due from the defaulter.
• 68B. Time limit for sale of attached immovable
  property.
• APPOINTMENT OF RECEIVER.
• 69. Appointment of receiver for business.
• Appointment of receiver for immovable property.
• Powers of receiver.
• Withdrawal of management.
• Notice to show cause.
• Hearing.
• Custody pending hearing.

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GENERAL PROVISIONS CONTD.

• Order of detention.
• Detention in and release from prison.
• Release
• Release on ground of illness.
• Entry into dwelling house.
• Prohibition against arrest of women or minors,
  etc.

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GENERAL PROVISIONS CONTD.
MISCELLANEOUS.

1. Power to take evidence.
2. Continuance of certificate.
3. Procedure on death of defaulter.
4. Appeals.
5. Review.
6. Recovery from surety.
7. Penalties.
8. Subsistence allowance.
9. Forms
10. Power to make rules.
11. Saving regarding charge.
12. Continuance of certain pending proceedings and
    power to remove difficulties.
13. Officers deemed to be acting judicially.

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THE THIRD SCHEDULE TO INCOME TAX ACT,1961.
DISTRAINT AND SALE.

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