TaxTMI 
TaxTMI 
Income-tax (Certificate Proceedings) Rules, 1962
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....of, and Schedule to, the Act. 3. Forms.- All references to "Forms" in these rules shall be construed as references to the forms set out in the Appendix hereto. 4. Tax Recovery Commissioners appointed by Central Government.- For the purpose of exercising general supervision over the work of Tax Recovery Officers referred to in sub-clause (iii) of clause (44) of section 2, the Central Government may appoint as many Tax Recovery Commissioners as it thinks fit. 5. Jurisdiction of Tax Recovery Commissioners.- Tax Recovery Commissioners shall perform their functions in respect of such areas as the Board may direct. 6. Jurisdiction of Tax Recovery Officers authorised to function as such by the Central Government.- Tax Recovery Officers referred to in sub-clause (iii) of clause (44) of section 2 shall exercise jurisdiction in respect of such areas as the Board may direct. 7. Jurisdiction of other Tax Recovery officers.- Tax Recovery Officers referred to in sub-clause (i) or sub-clause (ii) of clause (44) of section 2 shall exercise jurisdiction within the respective areas in which they exercise, or are authorised to exercise, the powers of a Collector under the law relating ....
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....very Officer and to the Income-tax Officer who issued the certificate the details of all amounts recovered by him in respect of such certificate from time to time. 13. Intimation by the Income-tax Officer.- Where a certificate has been, issued by an Income-tax Officer, he shall keep the Tax Recovery Officer to whom the certificate has been forwarded by him under sub-section (1) of section 223 and any other Tax Recovery Officer to whom the certificate has been sent under sub-section (2) of the said section, informed of any tax, interest or any other sum, as the case may be, paid or time granted for payment subsequent to the issue of such certificate. 14. Form of notice of demand.- The notice of demand under rule 2 of the principal rules shall be issued in Form No. I.T.C.P. 1 which may be so varied as the circumstances of each case may require. Part III Attachment and Sale of Property 15. Continuance of attachment subject to claim of encumbrancer.- Where, in the course of investigation made under rule 11 of the principal rules, the Tax Recovery Officer is satisfied that the property is subject to a mortgage or charge (other than a mortgage or charge referred to in sect....
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.... warrant of attachment of movable property under rule 20 of the principal rules; (ii) Form No. I.T.C.P. 3, for issuing a prohibitory order in the case of a debt not secured by a negotiable instrument under rule 28(1)(i) of the principal rules; (iii) Form No. I.T.C.P. 4, for Issuing a prohibitory order in the case of a share in a corporation under rule 26(1)(ii) of the principal rules; (iv) Form No. I.T.C.P. 5, for issuing a prohibitory order in the case of other movable property under rule 26(1)(iii) of the principal rules; (v) Form No. I.T.C.P. 6, for issuing a notice of attachment of a decree of a civil court under rule 27 of the principal rules; (vi) Form No. I.T.C.P. 7, for issuing a notice of attachment where the property consists of a share or interest in movable property under rule 28 of the principal rules; (vii) Form No. I.T.C.P. 8, for Issuing an order of attachment of salary or allowances under rule 29 of the principal rules; (viii) Form No. I.T.C.P. 9, for issuing an order of attachment of a negotiable instrument under rule 30 of the principal rules; (ix) Form No. I.T.C.P. 10, for issuing a notice o....
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....ves expenditure out of proportion to the value of the property, the attaching officer shall, subject to any directions which the Tax Recovery Officer may issue in this behalf, arrange for the proper maintenance and custody of the property at the place of attachment. The attaching officer shall forthwith send a report of having done so to the Tax Recovery Officer. (2) On receipt of a report from the attaching officer under sub-rule (1), the Tax Recovery Officer may either order the removal of the property to a place which he shall specify or sanction its maintenance and custody at the place of attachment under such conditions as he may think fit. 25. Removal and custody of property in other cases.- Where the attached property is not kept at the place of attachment, it shall be kept in the custody of an officer (hereinafter in this Part referred to as the "Custody Officer") subordinate to the Tax Recovery Officer and authorised by the Tax Recovery Officer for this purpose. The Custody Officer may remove the property to the Office of the Tax Recovery Officer for custody under his own supervision or, with the approval of the Tax Recovery Officer, may make such arrangements as may....
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....he movable property as has not been sold shall be handed over to the defaulter. 31. Feeding and tending of livestock under attachment.- Whenever livestock is kept at the place where it has been attached, the defaulter shall be at liberty to undertake the due feeding and tending of it, under the supervision of the attaching officer. 32. Removal of livestock.- In the event of the defaulter failing to feed attached livestock, the livestock may be placed in the custody of the Custody Officer or in the circumstances mentioned in rule 33 may be placed in a pound maintained by the Government or a local authority. 33. Custody of livestock in pound.- If there be any such pound near the office of the Tax Recovery Officer, the attaching officer or the custody officer may place in it such attached livestock as can properly be kept there in which case the pound-keeper shall be responsible for the livestock and shall receive the same rates for accommodation and maintenance thereof as are payable in respect of impounded cattle of the same description. 34. Custody with a person other than custody officer.- Notwithstanding anything contained in rule 33, the Custody Officer may, with the....
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.... may be allowed by him, the Tax Recovery Officer may take further proceedings to recover the amount due from the debtor as if the debtor were a defaulter in respect of whom the Income-tax Officer had forwarded a certificate under section 222 for the recovery of arrears of tax equal to the amount of the debt. (4)(a) Where the property sold is a share in a corporation, the delivery thereof to the purchaser shall be made by a written order of the Tax Recovery Officer prohibiting the person in whose name the share may be standing from making any transfer of the share to any person except the purchaser, or receiving payment of any dividend or interest thereon and requiring him to deliver the share certificate or other document of title along with the instrument of transfer duly completed by him to the Tax Recovery Officer within the time stipulated by the Tax Recovery Officer and prohibiting the manager, secretary or other proper officer of the corporation from permitting any such transfer or making any such payment to any person except the purchaser. (b) Where the person in whose name the share may be standing fails to deliver the share certificate or other document of title to t....
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....e made by putting such purchaser or any person whom the purchaser may appoint to receive delivery on his behalf in possession of the property, and if need be, by removing any person who refuses to vacate the same. (2) For the purposes of sub-rule (1), if the person in possession does not afford free access, the Tax Recovery Officer may, after giving reasonable warning and facility to any woman not appearing in public according to the customs of the country to withdraw, remove or open any look or bolt or break open any door or do any other act necessary for putting the purchaser, or any person whom the purchaser may appoint to receive delivery on his behalf, in possession. 40. Delivery of Immovable property in occupancy of tenant.- Where the immovable property sold is in the occupancy of a tenant or other person entitled to occupy the same and a certificate in respect thereof has been granted under rule 65 of the principal rules, the Tax Recovery Officer shall, on the application of the purchaser, order delivery to be made by affixing a copy of the certificate of sale in some conspicuous place on the property, and proclaiming to the occupant by beat of drum or other customary ....
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.... account of some person other than the defaulter, he shall direct that the applicant be put into possession of the property. 46. Rules not applicable to transferee lite pendente.- Nothing in rules 43 and 45 shall apply to resistance or obstruction by a person to whom the defaulter has transferred the property after the service of a notice under rule 2 of the principal rules or to the dispossession of any such person. 47. Right to file a suit.- Any party not being a defaulter against whom an order is made under rule 42 or rule 43 or rule 45 may institute a suit in a civil court to establish the right which he claims to the present possession of the property. Part VII Appointment, Powers and Duties of a Receiver. 48. Powers of a receiver.- A receiver appointed under the Second Schedule shall have all such powers, as to bringing in and defending suits and for the realisation, management, protection and preservation of the property, the collection of the rents and profits thereof, the application and disposal of such rents and profits, and the execution of documents as the owner himself has, or such of those powers as the Tax Recovery Officer thinks fit. 49. Remunerat....
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....ake an inquiry as to the amount, if any, due from the receiver, as shown by his accounts or otherwise, or an inquiry as to any loss to the property occasioned by his wilful default or gross negligence and may order the amount found due, if not already paid by the receiver under rule 50, or the amount of the loss so occasioned, to be paid by the receiver within a period to be fixed by the Tax Recovery Officer. (3) Where the receiver fails to pay any amount which he has been ordered to pay under sub-rule (2) within the period specified, the Tax Recovery Officer may direct such amount to be recovered from the security (if any) furnished by the receiver or by attachment and sale of his property or, if his property has been attached under sub-rule (1), by the sale of such property, and may direct the sale proceeds to be applied in making good any amount found due from the receiver or any such loss occasioned by him and the balance (if any) of the sale proceeds shall be paid to the receiver. (4) If a receiver fails to submit his accounts at such periods and in such form as directed by the Tax Recovery Officer without reasonable cause or improperly retains any cash in his hands, the....
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....llowing scale of fees shall be charged for service and execution of processes issued under the Second Schedule and these rules Where the amount mentioned in the certificate exceeds Rs. 1,000 is Rs. 1,000 or under Rs. Rs. (a) Notice of demand ..... 1.50 1.00 (b) Warrant of attachment ..... 3.00 2.00 (c) Warrant of arrest ..... 3.00 2.00 (d) Warrant of delivery ..... 3.00 2.00 (e) Proclamation of sale ..... 5.00 3.00 (f) Any process not provided for hereinabove. 1.50 1.00 57. Levy and scale of poundage fees.- (1) In respect of any sale made in the execution of a certificate, there snail be levied a fee by way of poundage on the gross amount realised by the sale, calculated at the rate of 2 per cent on such gross amount upto Rs. 1,000 and at the rate of 1 per cent on the excess of such gross amount over Rs. 1,000 (2) The poundage fee leviable under sub-rule (1) shall be calculated on multiples of Rs. 25, that is to say, a poundage fee of 50 nP shall be levied for every Rs. 25, or part of Rs. 25, realised by the sale upto Rs. 1,000 and in the case of the proceeds of the sale exceeding Rs. 1,000, an....
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....hen required under rule 83 of the principal rules to attend personally for examination on oath or affirmation, may attend either in person or by any legal practitioner who is entitled to practise in any civil court in India (2) In any such proceeding as aforesaid, the Income tax Officer concerned shall have the fight to be heard either in person or by a representative before the Tax Recovery Officer. APPENDIX Form No. I.T.C.P. 1 (See rule 2 of the Second Schedule to the Income-tax Act, 1961) Notice of Demand to Defaulter. Office of the Tax Recovery Officer, ___________________ ___________________ Dated____________ To ___________________ ___________________ ___________________ Please take notice that certificate No_____________ dated _____________has been forwarded by the Income-tax Officer, _____________for the recovery of an amount of Rs. details of which are given on the reverse 2. You are hereby required to pay the amount aforesaid within fifteen days from the date of service of this notice to Treasury Officer ________________________ Sub-treasury Officer _________________________ Agent, State Bank of India at__________....
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....Interest under section ......... (7) Fine under Section 131(2) ... (8) Any other sum (give details) ... (9) Interest under section 220(2) outstanding for the period upto the date of the certificate (10) Total ... ... . Form No. I.T.C.P. 2 (See rule 20 of the Second Schedule to the Income-tax Act, 1961) Warrant of attachment of Movable Property Office of the Tax Recovery Officer, _________________________ To ____________ ____________ Whereas certificate No____________ dated ____________has been forwarded by the Income-tax Officer____________ against____________ (defaulter) and the sum of Rs____________ as noted below, is due from him in respect of the said certificate: Rs. nP. Certificate Amount ... Costs & Charges .. Interest Total And whereas the said....
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....____ _________ (2) _________ (Principal Officer) ____________ (Name of Corporation) Whereas_________ (defaulter) has failed to pay the arrears due from him in respect of certificate No_________ dated_________ forwarded by the Income-tax Officer _________ amounting to Rs_________ and the interest payable under section 220(2) of the Income-tax Act, 1961, for the period commencing immediately after the said date; It is ordered that you, No. (I) above-mentioned, be, and you are hereby prohibited and restrained, until the further order of the undersigned, from making any transfer of the shares in the aforesaid Corporation standing in your name or from receiving payment of any dividends thereon. And that you, No. (2) above-mentioned, are hereby prohibited and restrained, until the further order of the undersigned, from permitting any such transfer or making any such payment. Given under my hand and seal at_________ this_________ day of_________ (SEAL) Tax Recovery Officer. Form No. I.T.C.P. 5 (See rule 20(1)(iii) of the Second Schedule to the Income-tax Act, 1961). Prohibitory order ....
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....cer. Form No. I.T.C.P. 7 (See rule 28 of the Second Schedule to the Income-tax Act, 1961) Notice of attachment where the property consists of a share or interest in movable property Office of the Tax Recovery Officer ____________________ To Whereas you have not paid the arrears amounting to Rs. payable by you in respect of certificate No dated forwarded by the Income-tax Officer and the Interest payable under section 220(2) of the Income-tax Act, 1961 for the period commencing Immediately after said date. It is hereby ordered that you the said__________ be and are hereby prohibited and restrained, until the further order of the undersigned, from transferring or charging in any way your share or interest in the under-mentioned Items of movable property, belonging to you and__________ and __________as co-owners. Given under my hand and seal at__________ this__________ day of__________ (SEAL) Tax Recovery Officer. Form No. I.T.C.P. 8 (See rule 29 of the Second Schedule to the Income-tax Act, 1961) Order to attach salary or allowances of servants of Government or local authority. Office of the Tax Recovery Officer, ___....
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....d the said money or property and any interest or dividend becoming payable thereon subject to the further order of the undersigned. Yours faithfully, Tax Recovery Officer _____________________ Note:-*Here state how the money or property is understood to be in the hands of the court or the public officer addressed, on what account and other available details. Form No. I.T.CP. 11 (See rule 32 of the Second Schedule to the Income-tax Act, 1961). Order of Attachment of Property Consisting of an Interest in Partnership Property. Office of the Tax Recovery Officer, __________ __________ To __________ __________ Whereas, __________ has not paid arrears amounting to Rs. __________in respect of a certificate No__________ dated __________forwarded by the Income-tax Officer.....and the Interest payable under section 220(2) of the Income-tax Act, 1961, for the period commencing immediately after the said date and whereas the said__________ is a partner in the firm known as Massrs __________; It is hereby ordered (i) that the share of the said __________in the partnership property and profits of the said firm be and is ....
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....the annexed schedule in satisfaction of the said certificate; And whereas on the __________day of__________ 19__________ (the date fixed for the sale) there will be due thereunder a sum of Rs________ including costs and interest: Notice is hereby given that, in the absence of any order of postponement, the said property shall be sold by ................... by public auction at ........................A.M./P.M. on the said __________day of________ 19_______ at__________ (place) The sale will be of the property of the defaulter above-named as mentioned in the schedule below; and the liabilities and claims attaching to the said property, so far as they have been ascertained, are those specified in the schedule against each lot; The property will be put up few sale in the lots specified in the schedule. If the amount to be realised by sale is satisfied by the sale of a portion of the property, the sale shall be immediately stopped with respect to the remainder. The sale will also be stopped If, before any lot is knocked down, the at rears mentioned in the said certificate, interest payable under section 220(2) of the Income-tax Act, 1961, and costs (including the costs of t....
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.... under-signed on or before the 15th day from the date of the sale of the property, exclusive of such day or if the 15th day be a Sunday on other holiday, then on the first office day after the 15th day in default of payment within the period mentioned above, the property shall be resold, after the issue of fresh proclamation of sale. The deposit, after defraying the expenses of the sale, may, if the undersigned thinks fit, be forfeited to the Government and the defaulting purchaser shall forfeit all claims to the property or to any part of the sum for which it may subsequently be sold. Schedule of Property No. of lot Description of property to be sold with the names of the other co-owners where the property belongs to the defaulter and any other persons as co-owners Revenue assessed upon the property or any part thereof Details of any incumberances to which the property is liable Claims, if any, which have been put forward to the property, and any other known particulars bearing on its nature and value. 1 2 3 4 5 Given under my hand and seal at ............ this ...... day of ................ 19............... Tax Recovery Officer. Form No.....
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.... prohibited from taking any benefit under such transfer or charge. Specification of Property Given under my hand and seal at __________this__________ day of__________ (Seal) Tax Recovery Officer. Form No. I.T.C.P. 17 (See rule 53 of the Second Schedule to the Income-tax Act, 1961). Notice to Defaulter for Settling a Sale Proclamation. Office of the Tax Recovery Officer, __________ __________ To __________ __________ Whereas in execution of certificate No. __________dated __________ forwarded by the Income-tax Officer, __________the undersigned has ordered the sale of the undermentioned immovable property; You are hereby informed that the __________day of_________ 19_________ has been fixed for drawing up the proclamation of sale and settling the terms thereof. You are requested to bring to the notice of the undersigned any encumbrances, charges, claims or liabilities attaching to the said properties or any portion thereof. Specification of Property. Given under my hand and seal at __________this day of__________ Tax Recovery Officer. Form No. I.T.C.P. 18 [See rule 63(1) of the Second Schedul....
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....clared the purchaser at a sale by public auction on the __________ day of __________ of the undermentioned Immovable property in execution of certificate No. __________ dated __________forwarded by the Income-tax Officer__________ for recovery of arrears from __________ and that the said sale has been duly confirmed by the undersigned and became absolute on the__________ day of __________ Specification of Property Given under my hand and seal at __________ this day __________ of __________ (SEAL) Tax Recovery Officer, Form No. I.T.C.P. 21 [See rule 66(2) of the Second Schedule to the Income-tax Act, 1961]. Certificate to defaulter authorising him to mortgage, lease or sell property Office of the Tax Recovery Officer, __________ __________ Whereas in execution of certificate No. __________ dated__________ forwarded by the Income-tax Officer__________ for recovery of arrears from __________ (defaulter) an order was made on the__________ day__________ of __________ for the sale of the undermentioned property of the said defaulter; And the undersigned is satisfied that there is reason to believe that if the sale is postponed t....
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....er, __________ 1 otter herewith a sum of Rs. __________ towards the said arrears. Regarding the balance of Rs__________ of the arrears us well as ousts, expenses and charges amounting to Rs__________, I undertake to pay the same in monthly instalments of Rs.__________ each payable not later than the __________ day of each month commencing from __________ along with each instalment I also undertake to pay the interest payable under section 220(2) of the Income-tax Act, 1961 for the period commencing immediately alter the date of issue of the said certificate I undertake not to commit any default in the payment of tile instalments. I agree that if I commit any default in paying any one of the instalments within the time aforesaid, the entire amount due from mo on the date of the default may be recovered in entirety by such measures as the Tax Recovery Officer__________ considers necessary. I specify herein my assets as on this day and I agree not to sell, give away, transfer, mortgage, or otherwise alienate or encumber these assets in any way until the entire amount due from me is paid to the Tax Recovery Officer__________ in full. I agree that in the meanwhile, the....
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....ertificate No__________ dated __________ forwarded by the Income-tax Officer, __________ *__________ for recovery of arrears from you and the interest payable under section 220(2) of the Income-tax Act, 1961 for the period commencing immediately after the said date and it is proposed to execute the above certificate by arrest and Imprisonment of your person; You are hereby required to appear before the undersigned on the __________ day of __________ at at__________ AM/PM and to show cause why you should not be committed to the civil prison in execution of the said certificate. Given under my hand and seal at __________ this day__________ of __________ (SEAL) Tax Recovery Officer. ____________ Form No. I.T.C.P. 26 (See Part V of the Second Schedule to the Income-tax Act, 1961) Warrant of Arrest Office of the Tax Recovery Officer, __________ __________ To __________ *__________ __________ *__________ Whereas certificate No__________ dated__________ was forwarded by the Income-tax Officer, __________ for recovery of arrears from __________ (defaulter) of __________ (address) and the sum of Rs. __________ ....
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....into the civil prison and to keep him imprisoned therein for a period of__________ or until the amount aforesaid together with further interest on Rs__________ at four per cent per annum for the period commencing immediately after the date of issue of this warrant payable under section 220(2) of the income-tax Act, 1961 is paid to you or until you receive on order of release from the undersigned. The under signed does hereby fix Rs__________ nP__________ per diem [calculated under rule 90(2) of the Second Schedule to the said Act] as the rate for subsistence allowance of the said__________ during his confinement under this warrant. Given under my hand and seal at__________ this__________ day of__________ (Seal) Tax Recovery Officer. ________ Form No. I.T.C.P. 28 (See rules 77, 78 and 79 of the Second Schedule to the Income-tax Act, 1961) Order of Release Office of the Tax Recovery Officer, __________ __________ To The Officer-in-charge of the Civil Prison of__________ Under orders passed this day, you are hereby directed to forthwith set free __________ who is now in your custody as a result of the warrant of detention issued by the undersi....