Recovery of penalties, fine, interest and other sums

Section 419 — RECOVERY OF PENALTIES, FINE, INTEREST AND OTHER SUMS

Section 419 of the Income-tax Act, 2025 corresponds to s. 229 of the Income-tax Act, 1961.

STATUTORY ARCHITECTURE

Section 419 is a single-sentence provision that extends the recovery machinery for tax to other sums. Any sum imposed by way of interest, fine or penalty, and any other sum payable under the Act, is recoverable in the manner provided in this Part for the recovery of arrears of tax. The section sits in Part D (Collection and Recovery) of Chapter XIX (Collection and Recovery of Tax). It creates no new liability; it only attaches the existing recovery procedure to sums that are already payable under other provisions.

KEY ELEMENTS

• Sums covered: interest, fine and penalty imposed under the Act.
• Residual category: "any other sum payable under the provisions of this Act", so the section is not confined to the three named items.
• Mode of recovery: the manner provided in this Part for the recovery of arrears of tax.
• Source of the liability: the sum must be imposed or payable "under the provisions of this Act".

CHANGES FROM THE 1961 ACT

The counterpart is s. 229 of the 1961 Act. The wording is identical except that the 1961 text referred to the manner provided "in this Chapter" for the recovery of arrears of tax, and the 2025 text refers to the manner provided "in this Part". Substantively the provision is the same.

PRACTITIONER NOTES

• Interest, fine, penalty and any other sum payable under the Act are recoverable in the same manner as arrears of tax; the section draws no distinction between them for recovery purposes.
• The section applies only to a sum that has been "imposed" or is "payable" under the provisions of the Act; the underlying order or provision creating the liability must therefore be identified before recovery is examined.
• The reference is now to "this Part" rather than the whole Chapter, so the recovery provisions applied are those in Part D of Chapter XIX, in which s. 419 sits.
• For the penalty under s. 412, cancellation and refund where the tax is wholly reduced by a final order are dealt with expressly in s. 412(5).

CROSS-REFERENCES

• Part D (Collection and Recovery) of Chapter XIX — the Part whose provisions for recovery of arrears of tax are applied by this section.
• s. 412(5) — cancellation and refund of the penalty for tax in default where the tax is wholly reduced by a final order.
• s. 229 of the 1961 Act — the corresponding provision.