Section 226 of Income Tax Act "Other modes of recovery"
226. (1) Where no certificate has been drawn up under
section 222, the Assessing Officer may recover the tax by
any one or more of the modes provided in this section.
(1A) Where a certificate has been drawn up under section
222, the Tax Recovery Officer may, without prejudice to the
modes of recovery specified in that section, recover the tax
by any one or more of the modes provided in this section.
(2) If any assessee is in receipt of any income chargeable
under the head "Salaries", the Assessing Officer or Tax
Recovery Officer may require any person paying the same to
deduct from any payment subsequent to the date of such
requisition any arrears of tax due from such assessee, and
such person shall comply with any such requisition and shall
pay the sum so deducted to the credit of the Central
Government or as the Board directs :
Provided that any part of the salary exempt from
attachment in execution of a decree of a civil court under
section 60 of the Code of Civil Procedure, 1908 (5 of 1908),
shall be exempt from any requisition made under this
sub-section.
(3) (i) The Assessing Officer or Tax Recovery Officer may,
at any time or from time to time, by notice in writing
require any person from whom money is due or may become due
to the assessee or any person who holds or may subsequently
hold money for or on account of the assessee to pay to the
Assessing Officer or Tax Recovery Officer either forthwith
upon the money becoming due or being held or at or within
the time specified in the notice (not being before the money
becomes due or is held) so much of the money as is
sufficient to pay the amount due by the assessee in respect
of arrears or the whole of the money when it is equal to or
less than that amount.
(ii) A notice under this sub-section may be issued to any
person who holds or may subsequently hold any money for or
on account of the assessee jointly with any other person and
for the purposes of this sub-section, the shares of the
joint holders in such account shall be presumed, until the
contrary is proved, to be equal.
(iii) A copy of the notice shall be forwarded to the
assessee at his last address known to the Assessing Officer
or Tax Recovery Officer, and in the case of a joint account
to all the joint holders at their last addresses known to
the Assessing Officer or Tax Recovery Officer.
(iv) Save as otherwise provided in this sub-section, every
person to whom a notice is issued under this sub-section
shall be bound to comply with such notice, and, in
particular, where any such notice is issued to a post
office, banking company or an insurer, it shall not be
necessary for any pass book, deposit receipt, policy or any
other document to be produced for the purpose of any entry,
endorsement or the like being made before payment is made,
notwithstanding any rule, practice or requirement to the
contrary.
(v) Any claim respecting any property in relation to which a
notice under this sub-section has been issued arising after
the date of the notice shall be void as against any demand
contained in the notice.
(vi) Where a person to whom a notice under this sub-section
is sent objects to it by a statement on oath that the sum
demanded or any part thereof is not due to the assessee or
that he does not hold any money for or on account of the
assessee, then nothing contained in this sub-section shall
be deemed to require such person to pay any such sum or part
thereof, as the case may be, but if it is discovered that
such statement was false in any material particular, such
person shall be personally liable to the Assessing Officer
or Tax Recovery Officer to the extent of his own liability
to the assessee on the date of the notice, or to the extent
of the assessee's liability for any sum due under this Act,
whichever is less.
(vii) The Assessing Officer or Tax Recovery Officer may, at
any time or from time to time, amend or revoke any notice
issued under this sub-section or extend the time for making
any payment in pursuance of such notice.
(viii) The Assessing Officer or Tax Recovery Officer shall
grant a receipt for any amount paid in compliance with a
notice issued under this sub-section, and the person so
paying shall be fully discharged from his liability to the
assessee to the extent of the amount so paid.
(ix) Any person discharging any liability to the assessee
after receipt of a notice under this sub-section shall be
personally liable to the Assessing Officer or Tax Recovery
Officer to the extent of his own liability to the assessee
so discharged or to the extent of the assessee's liability
for any sum due under this Act, whichever is less.
(x) If the person to whom a notice under this sub-section is
sent fails to make payment in pursuance thereof to the
Assessing Officer or Tax Recovery Officer, he shall be
deemed to be an assessee in default in respect of the amount
specified in the notice and further proceedings may be taken
against him for the realisation of the amount as if it were
an arrear of tax due from him, in the manner provided in
sections 222 to 225 and the notice shall have the same
effect as an attachment of a debt by the Tax Recovery
Officer in exercise of his powers under section 222.
(4) The Assessing Officer or Tax Recovery Officer may apply
to the court in whose custody there is money belonging to
the assessee for payment to him of the entire amount of such
money, or, if it is more than the tax due, an amount
sufficient to discharge the tax.
(5) The Assessing Officer or Tax Recovery Officer may, if so
authorised by the Principal Chief Commissioner or Chief
Commissioner or Principal Commissioner or Commissioner by
general or special order, recover any arrears of tax due
from an assessee by distraint and sale of his movable
property in the manner laid down in the Third Schedule.
227. If the recovery of tax in any area has been entrusted to a State Government under clause (1) of article 258 of the Constitution, the State Government may direct, with respect to that area or any part thereof; that tax shall be recovered therein with, and as an addition to, any municipal tax or local rate, by the same person and in the same manner as the municipal tax or local rate is recovered.