Section 173 - Recovery of tax in respect of non-resident from his assets

Section 173 allows tax recovery from non-resident taxpayers through their Indian assets and deduction provisions

Section 173 of the Income Tax Act, 1961 provides for recovery of tax from non-resident taxpayers through their assets located in India. The provision allows tax authorities to recover tax chargeable on income of non-residents, whether assessed in the non-resident's name or their agent's name as representative assessee. Tax can be recovered through deduction provisions under Chapter XVII-B and any outstanding tax arrears may be recovered from the non-resident's assets present in India or those that may subsequently come within Indian territory. This provision operates without prejudice to other recovery mechanisms under sections 161 and 167.