Clause 250 of Income Tax Bill 2025: Seized Assets for Tax Recovery, Conditions for Release, 120-Day Limit for Return.

Clause 250 of the Income Tax Bill, 2025, outlines the application of seized or requisitioned assets for recovering tax liabilities, including penalties and interest, excluding advance tax. The Assessing Officer can use these assets to settle liabilities under various tax acts, including the Income-tax Act, 1961, and the Black Money Act, 2015. Assets can be released upon application, subject to conditions, and must be released within 120 days post-search or requisition execution. Money assets can directly discharge liabilities, while non-monetary assets are treated as under distraint. Any excess assets post-liability settlement are returned to the concerned person, with interest paid by the government on delayed returns.