Section 413 — Certificate by Tax Recovery Officer and…

Section 413 of the Income-tax Act, 2025 corresponds to ss. 222 and 224 of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Section 413 authorises the Tax Recovery Officer to draw up a certificate of arrears against an assessee who is in…

Section 413 — CERTIFICATE BY TAX RECOVERY OFFICER AND VALIDITY THEREOF

Section 413 of the Income-tax Act, 2025 corresponds to ss. 222 and 224 of the Income-tax Act, 1961.

Statutory text — Income-tax Act, 2025

(1) When an assessee is in default or is deemed to be in default in making a payment of tax, the Tax Recovery Officer may draw up under his signature a statement in such form as may be prescribed specifying the amount of arrears due from the assessee (such statement being herein and in sections 414 to 416 referred to as certificate) and shall proceed to recover from such assessee the amount specified in the certificate by one or more of the modes mentioned below, as per the rules prescribed in this regard,—

(a) attachment and sale of movable property of the assessee;

(b) attachment and sale of immovable property of the assessee; 98 [(c) appointing a receiver for the management of movable and immovable properties of the assessee.]

(2) The Tax Recovery Officer may take action under sub-section (1), whether or not proceedings for recovery of the arrears by any other mode have been taken.

(3) The assessee shall not be entitled to dispute the correctness of any certificate drawn up by the Tax Recovery Officer on any ground.

(4) The Tax Recovery Officer may cancel the certificate if, for any reason, he considers it necessary so to do, or may correct any clerical or arithmetical mistake therein.

(5) For the purposes of this section, the movable or immovable property of the assessee shall include any property—

(a) which has been transferred, directly or indirectly on or after the 1st June, 1973, by the assessee to his spouse or minor child or son’s wife or son’s minor child, otherwise than for adequate consideration, and which is held by, or stands in the name of, any of the said persons; and

(b) so far as the movable or immovable property so transferred to his minor child or his son’s minor child is concerned, it shall, even after the date of attainment of majority by such minor child or son’s minor child, as the case may be, continue to be included in the movable or immovable property of the assessee for recovering any arrears due from the assessee in respect of any period prior to such date. Tax Recovery Officer by whom recovery is to be effected.

Corresponding provision — 1961 regime

INCOME-TAX ACT, 2025

INCOME-TAX ACT, 1961

s. 413 — Certificate by Tax Recovery Officer and validity thereof

s. 222 — Certificate to Tax Recovery Officer

s. 224 — Validity of certificate and cancellation or amendment thereof

STATUTORY ARCHITECTURE

Section 413 authorises the Tax Recovery Officer to draw up a certificate of arrears against an assessee who is in default, or deemed to be in default, in paying tax, and to recover the certified amount by the modes listed in sub-section (1). Clause (c) of sub-section (1) was substituted for the former clauses (c) and (d) by the Finance Act, 2026, w.e.f. 1-4-2026.

KEY ELEMENTS

Sub-section (1) — the certificate is a statement, in the prescribed form and under the Tax Recovery Officer's signature, specifying the arrears; the term "certificate" is used in this section and in sections 414 to 416.
Modes of recovery, as per the rules prescribed: (a) attachment and sale of movable property; (b) attachment and sale of immovable property; (c) appointing a receiver for the management of movable and immovable properties.
Pre-2026 position: clause (c) read "arrest of the assessee and his detention in prison"; clause (d) provided for a receiver.
Sub-section (2) — action may be taken whether or not recovery proceedings by any other mode have been taken.
Sub-section (3) — the assessee is not entitled to dispute the correctness of the certificate on any ground.
Sub-section (4) — the Tax Recovery Officer may cancel the certificate if he considers it necessary, or correct any clerical or arithmetical mistake.
Sub-section (5) — the assessee's property includes property transferred, directly or indirectly, on or after 1st June, 1973, to the spouse, minor child, son's wife or son's minor child otherwise than for adequate consideration and held by or standing in the name of that person; property transferred to a minor child or son's minor child continues to be included after majority for arrears relating to any period before that date.

CHANGES FROM THE 1961 ACT

Section 413 combines s. 222 and s. 224 of the 1961 Act. Arrest and detention in prison, clause (c) of s. 222(1) of the 1961 Act, does not appear in the 2025 text as amended by the Finance Act, 2026. Recovery is to follow "the rules prescribed" rather than the rules in the Second Schedule. The Explanation to s. 222(1) of the 1961 Act, stated for "this sub-section", becomes sub-section (5), stated "for the purposes of this section". "Notwithstanding that" becomes "whether or not" in sub-section (2). The content of s. 224 of the 1961 Act is split into sub-sections (3) and (4).

PRACTITIONER NOTES

Sub-section (3) bars the assessee from disputing the correctness of the certificate itself on any ground; the power to cancel under sub-section (4) rests with the Tax Recovery Officer.
Sub-section (4) empowers the Tax Recovery Officer to correct clerical or arithmetical mistakes in a certificate; such a mistake can be brought to his notice, but the section confers the power on him rather than a right of application on the assessee.
Under sub-section (5), transfers to the specified relatives for adequate consideration fall outside the extension.

CROSS-REFERENCES

ss. 414 to 416 — provisions in which "certificate" carries the meaning given in sub-section (1).
s. 222 and s. 224 of the 1961 Act — corresponding provisions.

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