TaxTMI 
TaxTMI 
TaxTMI 
Income-tax (Certificate Proceedings) Rules, 1962
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.... 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 to land revenue for the time being in force in the State concerned. 8. Transfer of proceedings to....
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....f 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 section 281 or rule 18 of the said rules) in favour of some person not in possession, and thinks fit to continue the attachment he may do so....
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.... 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 of attachment of movable property in the custody of any court or public officer under rule 31 of the principal rules; (x) Form No. I.T.C.P. 11, for issuing an order of attachment of property consisting of an inte....
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....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 be convenient and economical for its safe custody with any other fit person under his own supervision and the Tax Recovery Officer may fix the remuneration to be allowed to such person. 26. Property may be handed over to the defaulter.- Notwithstanding anything contained in rule 24 or rule 25, the attachin....
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....ng 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 approval of the Tax Recovery Officer, entrust the attached livestock to any other fit person under his own supervision and the Tax Recovery Officer may fix the remuneration to be allowed to such person after taking into account the local circumstances and the charges which such person may have to incur for the maintenance and cu....
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....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 the Tax Recovery Officer within the time stipulated by him, or within such further time as may be allowed by him, the Tax Recovery Officer may take steps to obtain a duplicate of the share certificate or other document of title as if the share certificate or other document of title had been lost or destroyed. 37. Transfer of negotiable Instruments a....
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....g 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 mode, at some convenient place, that the interest of the defaulter has been transferred to the purchaser. Part VI Resistance or obstruction to delivery of possession to purchaser 41. Resistance or obstruction to possession of immovable property.- (1) Where the purchaser of immovable property sold in execution of a certificate is resisted or obstructed by any person in ....
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....ossession 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. Remuneration of a receiver.- The Tax Recovery Officer may, by general or special order, fix the amount to be paid as remuneration for the services of the receiver 50. Duties of a receiver.- (1) Every receiver so appointed shall- (a) furnish such security (if any) as the Tax Recovery Officer thinks fit, duly to account for what he shall receive in respect of the property; (b) submit his accounts at such pe....
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....o 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 Tax Recovery Officer may disallow the whole or any portion of the remuneration due to him for the period of the accounts with reference to which the default is committed and may also charge interest at a rate not exceeding twelve per cent per annum on the moneys improperly retained by him for the period of such retention without prejudice to any other proceedings which might be taken against the receiver. 52. Form of order of appointment of a....
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....ve. 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 additional fee of 25 nP for every Rs. 25 or part thereof on the excess of such amount over Rs. 1,000, shall be levied. (3) Where the sale is in more than one lot, the poundage fee shall be calculated with reference to the sale proceeds of each lot separately. (4) The poundage fee under sub-rule (1) shall be paid by the purchaser of the property as soon as the sale is completed. (5) When a sale of immovable property is set aside under sub-rule (2) of rule 63 of the principal rules, the Tax Recovery Officer may make an order for payment, ....
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....__ ___________________ 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______________ A chalan in enclosed for the purpose. Reserve Bank of India 3. You are informed that in case of default, steps would be taken to realise the amount in accordance with the Second Schedule to the Income-tax Act, 1961. 4. In addition to the amount aforesaid, you will also be liable for- (a) such interest as is payable in accordance with section 220(2) of the said Act for the period commencing immediately after the date of the issue of the said certificate, and (b) all costs, charges and expenses incurred in respect of the service of this notice and of warrants and other processes and of all other proceedings tak....
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.... below, is due from him in respect of the said certificate: Rs. nP. Certificate Amount ... Costs & Charges .. Interest Total And whereas the said sum of Rs____________ has not been paid in satisfaction of the said certificate; This is to direct you to serve a copy of this warrant on the defaulter and, unless after such service the said defaulter pays forthwith the said sum of Rs_________ together with interest at four per cent per annum of Rs_________ from the date of the issue of this warrant and Rs_________ for the cost of executing this process, to proceed to attach the movable property of the said defaulter and to hold the same until further orders from the undersigned. You are further directed to return this warrant on or before the_________ day of _________19, with an endorsement certifying the day on which and the manner in which it has been executed, or the reason why it has not been executed. Given under my hand and seal at_________ this_________ day_________ of_________ (SEAL) Tax Recovery Officer. Form No. I.T.C.P. 3 [See rule 26(1)(i)....
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.... 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 where the property to be attached consists of movable property to which the defaulter is entitled subject to a lien or right of some other person to the immediate possession thereof Office of the Tax Recovery Officer, __________________ To __________________ __________________ __________________ 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 the said defaulter be, and is hereby prohibited and restrained, until the further order of the undersigned, from receiving from you, namely, the following property in the possession of the said that is to say to which the said defaulter is entitled, subject to your claim of immediate possession thereof And that you are hereby prohibited and restrained, until the further order of the undersigned, ....
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....he Tax Recovery Officer, __________ __________ To __________ __________ Whereas__________ (defaulter) has not paid arrears amounting to Rs__________ 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 the said date; And whereas the said __________ is a__________ (office allowances held by defaulter) receiving his salary and allowances at your hands; You are hereby required to withhold the sum of Rs__________ from the salary of the said in monthly instalments of and to remit the said sum in monthly instalments to the undersigned. Given under my hand and seal at__________ this day of__________ (SEAL) Tax Recovery Officer. Form No. I.T.C.P. 9 (See rule 30 of the Second Schedule to the Income-tax Act, 1961) Order of attachment of Negotiable instrument Office of the Tax Recovery Officer, __________ __________ To (Attaching Officer) __________ __________ Whereas the undersigned has passed on the__________ day of__________ 19 an order for the attachment of the undermentioned property in the cou....
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.... under my hand and seal at________ this_______ day of________ 19. (SEAL) Tax Recovery Officer. __________________ Note: *Here incorporated any other order that may be considered necessary in the circumstances. Form No. I.T.C.P. 12 [See Rule 37 and rule 52(1) of the Second Schedule to the Income-tax Act, 1961]. Warrant of Sale of Property. Office of the Tax Recovery Officer, __________ __________ To __________ __________ These are to command you to sell by public auction, after giving __________days previous notice by affixing the same in the office of the undersigned, and after making due proclamation, the undermentioned property attached in execution of Certificate No. __________ dated________ forwarded by the Income-tax Officer __________ against__________ (defaulter)or so much of the said property as shall realise (i) the sum of Rs__________, being, the sum of the amount of the said certificate and costs Still remaining unsatisfied and (ii) interest payable on Rs__________ under section 220(2) of the Income-tax Act, 1961, for the period commencing immediately after the said date of issue of the certificate. 2. You are further commanded to return this warrant on ....
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....generally are invited to bid either personally or by duly authorised agent No officer of other person, having any duty to perform in connection with this sale shall, however, either directly or indirectly bid for, acquire or attempt to acquire any interest in the property sold. The sale shall be subject to the conditions prescribed in the Second Schedule to the Income-tax Act, 1961, and the rules made thereunder and to the following further conditions:- (i) The particulars specified in the annexed schedule have been stated to the best of the information of the undersigned, but the undersigned shall not be answerable for any error, misstatement or omission in this proclamation (ii) The amounts by which biddings are to be increased shall be determined by the officer conducting the sale in the event of any dispute arising as to the amount bid, of as to the bidder, the lot shall at once be again put up to auction (iii) The highest bidder shall be declared to be the purchaser of any lot provided always that he is legally qualified to bid, and provided that it shall be in the discretion of the under signed to decline acceptance of the highest bid when the bid is less than the rese....
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....roperty at a sale by public auction on the_________ day of_________ in execution of certificate No_________ dated________ forwarded by the Income-tax Officer __________ for recovery of arrears from __________ Specification of Property Given under my hand and seal at_________ this_________ day of__________ (Seal) Officer holding the Sale. Form No. I.T.C.P. 15 (See rule 47 of the Second Schedule to the Income-tax Act, 1961). Order for Payment to the Income-tax Officer of Current Coins and Currency Notes Attached. Office of the Tax Recovery Officer, __________ __________ To __________ __________ Whereas in execution of certificate No__________ dated __________ forwarded by the Income-tax Officer__________ the following property consisting of current coins/currency notes has been attached:- (1) (2) Current coins. Currency Notes It is hereby ordered that out of the property so attached Rs__________ in current coins and Rs. __________in currency notes shall he paid over to the income-tax Officer __________ in satisfaction of the said certificate. Given under my hand and seal at_________ this____....
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....__________The full amount of the purchase money has been paid on __________-* No application under rule 60/rule 61/rule 62 of the Second Schedule to the Income-tax Act, 1961 has been received for setting aside the sale. *Application under rule 60/rule 61/rule 62 of the Second Schedule to the said Act made by __________for setting aside the sale has been disallowed by the undersigned. Accordingly, the said sale is hereby confirmed. Specification of Property Given under my hand and seal at __________this day __________of __________ (Seal) Tax Recovery Officer. Form No. I.T.C.P. 19 [See rule 63(2) of the Second Schedule to the Income-tax Act, 1961]. Notice to interested parties to show cause why sale should not be set aside. Office of the Tax Recovery Officer, __________ __________ To __________ __________ Whereas the undermentioned property was sold on the __________day of __________ in execution of certificate No__________ dated __________ forwarded by the Income-tax Officer__________ for recovery of arrears from __________ (defaulter) And whereas __________ has applied to the undersigned to set aside the sale under rule 60/rule 61/rule 62 of the Seco....
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.... moneys payable under such mortgage/lease/sale shall be paid, not to the said defaulter, but to the undersigned and provided also that no such mortgage/lease/sale shall become absolute until it has been confirmed by the undersigned. Description of Property Given under my hand and seal at__________ this day__________ of __________ (SEAL) Tax Recovery Officer. ______________________ Form No. I.T.C.P. 22 (See rule 69 of the Second Schedule to the Income-tax Act, 1961) Order attaching a business Office of the Tax Recovery Officer, __________ __________ To __________ (name of defaulter) __________ __________ Whereas certificate No__________ dated __________ for recovery of arrears amounting to Rs__________ from you has been forwarded by the Income-tax Officer, __________; It is hereby ordered that the business carried on by you under the name and style of __________ at __________be and is hereby attached and you are informed accordingly. It is hereby further ordered that you, the above said __________ be and are hereby prohibited and restrained from transferring or charging the said business in any way and that all persons whosoever are hereby pr....
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....the Income-tax Act, 1961) Appointment of a Receiver Office of the Tax Recovery Officer, __________ __________ To __________ __________ __________ Whereas __________ has been attached under an order passed by the undersigned under rule 69/rule 70 of the Second Schedule to the Income-tax Act, 1961 in the course of execution of certificate No__________ dated__________ forwarded by the Income-tax Officer__________ for recovery of arrears from the said __________ You are hereby appointed receiver of the said business/property. Subject to any orders which may be passed by the undersigned in this behalf, you shall have all the powers necessary for the management of the said business/property in accordance with the said Schedule and the rules made thereunder. You are required to render a due and proper account of your receipts and disbursements in respect of the said business/property in accordance with Part VII of the Income-tax (Certificate Proceedings) Rules, 1962. You will be entitled to remuneration at the rate of __________ Your appointment as receiver of the said business/property shall continue in force until further orders of the undersigned and may be cancelled o....
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....ely after the date of issue of this warrant and Rs__________ for the cost of executing this process. You are hereby further commanded to return the warrant on or before the__________ day of__________ with an endorsement certifying the day on which and the manner in which it has been executed or the reason why it has not been executed. Given under my hand and seal at-__________ this__________ day of__________ (Seal) Tax Recovery Officer. ________________ Form No. I.T.C.P. 27 (See Part V of the Second Schedule to the Income-tax Act, 1961) Warrant of Detention in Civil Prison Office of the Tax Recovery Officer, __________ __________ To The Officer-in-charge of the Civil Prison of__________ Whereas__________ has been brought before the undersigned under a warrant in execution of certificate No__________ dated__________ forwarded by the Income-tax Officer, __________ for recovery of arrears from him. And whereas he has not satisfied the undersigned that he is entitled to be discharged from custody and has not paid the amount due from him as detailed below:- Rs. nP. Certificate amount Costs and charges Interest &n....