CHAPTER XVII - COLLECTION AND RECOVERY OF TAX | D.—COLLECTION AND RECOVERY
CHAPTER XVII - COLLECTION AND RECOVERY OF TAX | D.—COLLECTION AND RECOVERY
Section 228A — Recovery of Tax in Pursuance of Agreements with Foreign Countries
Case Laws & Commentary — Income-tax Act, 1961 (as amended by the Finance Act, 2026) — bharattax.co Treatise
Status: Live; the statutory vehicle for mutual assistance in the collection of taxes under agreements with foreign countries — both inbound (recovering a foreign tax in India) and outbound (forwarding an Indian certificate abroad).
Finance Act, 2026: No amendment by the Finance Act, 2026.
Mechanism: Inbound (228A(1)): foreign authority sends the Board a certificate for recovery of its tax from a resident / person having property in India → Board forwards it to the jurisdictional TRO → TRO recovers as if it were a certificate under section 222 and remits the sum (less expenses) to the Board. Outbound (228A(2)): where an assessee in default is resident in, or has property in, a treaty-partner country, the TRO forwards his section 222 certificate to the Board, which acts on it as per the agreement.
Litigation profile: Sparse direct litigation; the provision operates through the assistance-in-collection articles of tax treaties and Board procedure.
A. COMMENTARY
Mutual assistance in collection
Section 228A gives domestic effect to the 'assistance in the collection of taxes' obligations that India undertakes in its tax treaties (cf. Article 27 of the OECD and UN Model Conventions). It works both ways. Inbound, a foreign tax authority's recovery certificate, routed through the Board, is executed by the Indian TRO exactly as if it were a section 222 certificate, with the recovered sum (net of expenses) remitted to the Board. Outbound, an Indian TRO's certificate against a defaulter who is resident or holds property in a treaty-partner State is forwarded to the Board for action under the relevant agreement.
Practical and candour note
Because recovery assistance depends on the existence and terms of a specific bilateral agreement, the section is invoked relatively rarely and there is little section-specific case law. The provision must be read with the particular treaty's collection-assistance article and the Board's administrative machinery; the candour rule is applied to the authorities.
B. STATUTORY TEXT (verbatim)
Reproduced from the Income-tax Act, 1961 as amended up to the Finance Act, 2025; the Finance Act, 2026 makes no amendment to this section. Editorial '[Omitted...]' notes are those of the Legislature.
Recovery of tax in pursuance of agreements with foreign countries.
228A. (1) Where an agreement is entered into by the Central Government with the Government of any country outside India for recovery of income-tax under this Act and the corresponding law in force in that country and the Government of that country or any authority under that Government which is specified in this behalf in such agreement sends to the Board a certificate for the recovery of any tax due under such corresponding law from a resident, or a person having any property in India, the Board may forward such certificate to any Tax Recovery Officer having jurisdiction over the resident, or within whose jurisdiction such property is situated and thereupon such Tax Recovery Officer shall—
(a) proceed to recover the amount specified in the certificate in the manner in which he would proceed to recover the amount specified in a certificate drawn up by him under section 222; and
(b) remit any sum so recovered by him to the Board after deducting his expenses in connection with the recovery proceedings.
(2) Where an assessee is in default or is deemed to be in default in making a payment of tax, the Tax Recovery Officer may, if the assessee is a resident of a country (being a country with which the Central Government has entered into an agreement for the recovery of income-tax under this Act and the corresponding law in force in that country), or has any property in that country, forward to the Board a certificate drawn up by him under section 222 and the Board may take such action thereon as it may deem appropriate having regard to the terms of the agreement with such country.
C. AUTHORITIES
Sparse direct authority; candour rule applied. The provision is treaty-driven.
1. Candour note — treaty-driven recovery
No significant direct case law
Position Section 228A operates through bilateral assistance-in-collection agreements and Board procedure; there is no significant reported decision construing it. Its content is supplied by the relevant treaty article (e.g., Article 27 of the Model Conventions) and CBDT machinery.
Use State the candour position; read the section with the applicable treaty.
CHAPTER XVII - COLLECTION AND RECOVERY OF TAX | D.—COLLECTION AND RECOVERY
Section 228A — Recovery of Tax in Pursuance of Agreements with Foreign Countries
Case Laws & Commentary — Income-tax Act, 1961 (as amended by the Finance Act, 2026) — bharattax.co Treatise
Status: Live; the statutory vehicle for mutual assistance in the collection of taxes under agreements with foreign countries — both inbound (recovering a foreign tax in India) and outbound (forwarding an Indian certificate abroad).
Finance Act, 2026: No amendment by the Finance Act, 2026.
Mechanism: Inbound (228A(1)): foreign authority sends the Board a certificate for recovery of its tax from a resident / person having property in India → Board forwards it to the jurisdictional TRO → TRO recovers as if it were a certificate under section 222 and remits the sum (less expenses) to the Board. Outbound (228A(2)): where an assessee in default is resident in, or has property in, a treaty-partner country, the TRO forwards his section 222 certificate to the Board, which acts on it as per the agreement.
Litigation profile: Sparse direct litigation; the provision operates through the assistance-in-collection articles of tax treaties and Board procedure.
A. COMMENTARY
Mutual assistance in collection
Section 228A gives domestic effect to the 'assistance in the collection of taxes' obligations that India undertakes in its tax treaties (cf. Article 27 of the OECD and UN Model Conventions). It works both ways. Inbound, a foreign tax authority's recovery certificate, routed through the Board, is executed by the Indian TRO exactly as if it were a section 222 certificate, with the recovered sum (net of expenses) remitted to the Board. Outbound, an Indian TRO's certificate against a defaulter who is resident or holds property in a treaty-partner State is forwarded to the Board for action under the relevant agreement.
Practical and candour note
Because recovery assistance depends on the existence and terms of a specific bilateral agreement, the section is invoked relatively rarely and there is little section-specific case law. The provision must be read with the particular treaty's collection-assistance article and the Board's administrative machinery; the candour rule is applied to the authorities.
B. STATUTORY TEXT (verbatim)
Reproduced from the Income-tax Act, 1961 as amended up to the Finance Act, 2025; the Finance Act, 2026 makes no amendment to this section. Editorial '[Omitted...]' notes are those of the Legislature.
Recovery of tax in pursuance of agreements with foreign countries.
228A. (1) Where an agreement is entered into by the Central Government with the Government of any country outside India for recovery of income-tax under this Act and the corresponding law in force in that country and the Government of that country or any authority under that Government which is specified in this behalf in such agreement sends to the Board a certificate for the recovery of any tax due under such corresponding law from a resident, or a person having any property in India, the Board may forward such certificate to any Tax Recovery Officer having jurisdiction over the resident, or within whose jurisdiction such property is situated and thereupon such Tax Recovery Officer shall—
(a) proceed to recover the amount specified in the certificate in the manner in which he would proceed to recover the amount specified in a certificate drawn up by him under section 222; and
(b) remit any sum so recovered by him to the Board after deducting his expenses in connection with the recovery proceedings.
(2) Where an assessee is in default or is deemed to be in default in making a payment of tax, the Tax Recovery Officer may, if the assessee is a resident of a country (being a country with which the Central Government has entered into an agreement for the recovery of income-tax under this Act and the corresponding law in force in that country), or has any property in that country, forward to the Board a certificate drawn up by him under section 222 and the Board may take such action thereon as it may deem appropriate having regard to the terms of the agreement with such country.
C. AUTHORITIES
Sparse direct authority; candour rule applied. The provision is treaty-driven.
1. Candour note — treaty-driven recovery
No significant direct case law
Position Section 228A operates through bilateral assistance-in-collection agreements and Board procedure; there is no significant reported decision construing it. Its content is supplied by the relevant treaty article (e.g., Article 27 of the Model Conventions) and CBDT machinery.
Use State the candour position; read the section with the applicable treaty.