Recovery from seized assets can be applied against tax liabilities, subject to procedural release conditions and distraint rules.

Assessing Officer may recover tax liabilities from seized material (excluding books and documents) by applying asset value against an aggregate of liabilities existing at search, liabilities determined up to assessment completion and up to asset release, with recovery from non-cash assets effected by distraint under the Fifth Schedule. The Assessing Officer must release surplus assets or proceeds after liabilities are discharged, and may release assets earlier subject to custodian application, satisfactory explanation, prior senior approval, or deposit of cash equal to asset value, treated as seized cash.

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