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What is Recovery of tax in pursuance of agreements with foreign countries? What is Recovery of penalties, fine, interest and other sums? What is Tax clearance certificate? Section 228A, 229 and 230 of Income Tax Act 1961

Recovery of tax in pursuance of agreements with foreign countries, Recovery of penalties, fine, interest and other sums and Tax clearance certificate are defined under section 228A, 229 and 230 of Income Tax Act 1961. Provisions under these Sections are :

Section 228A of Income Tax Act "Recovery of tax in pursuance of agreements with foreign countries"

Section 228A. (1) Where an agreement is entered into by the Central Government with the Government of any country outside India for recovery of income-tax under this Act and the corresponding law in force in that country and the Government of that country or any authority under that Government which is specified in this behalf in such agreement sends to the Board a certificate for the recovery of any tax due under such corresponding law from a person having any property in India, the Board may forward such certificate to any Tax Recovery Officer within whose jurisdiction such property is situated and thereupon such Tax Recovery Officer shall-

 

(a) proceed to recover the amount specified in the certificate in the manner in which he would proceed to recover the amount specified in a certificate drawn up by him under section 222; and

(b) remit any sum so recovered by him to the Board after deducting his expenses in connection with the recovery proceedings.

(2) Where an assessee is in default or is deemed to be in default in making a payment of tax, the Tax Recovery Officer may, if the assessee has property in a country outside India (being a country with which the Central Government has entered into an agreement for the recovery of income-tax under this Act and the corresponding law in force in that country), forward to the Board a certificate drawn up by him under section 222 and the Board may take such action thereon as it may deem appropriate having regard to the terms of the agreement with such country.

Section 229 of Income Tax Act "Recovery of penalties, fine, interest and other sums"

Section 229. Any sum imposed by way of interest, fine, penalty, or any other sum payable under the provisions of this Act, shall be recoverable in the manner provided in this Chapter for the recovery of arrears of tax.

Section 230 of Income Tax Act "Tax clearance certificate"

Section 230. (1) Subject to such exceptions as the Central Government may, by notification in the Official Gazette, specify in this behalf, no person,-
(a) who is not domiciled in India;
(b) who has come to India in connection with business, profession or employment; and
(c) who has income derived from any source in India,
shall leave the territory of India by land, sea or air unless he furnishes to such authority68 as may be prescribed-

(i) an undertaking in the prescribed form69 from his employer; or

(ii) through whom such person is in receipt of the income, to the effect that tax payable by such person who is not domiciled in India shall be paid by the employer referred to in clause (i) or the person referred to in clause (ii), and the prescribed authority68 shall, on receipt of the undertaking, immediately give to such person a no objection certificate70, for leaving India:

Provided that nothing contained in sub-section (1) shall apply to a person who is not domiciled in India but visits India as a foreign tourist or for any other purpose not connected with business, profession or employment.

(1A) Subject to such exceptions as the Central Government may, by notification in the Official Gazette, specify in this behalf, every person, who is domiciled in India at the time of his departure from India, shall furnish, in the prescribed form71 to the income-tax authority or such other authority as may be prescribed-

(a) the permanent account number allotted to him under section 139A:
Provided that in case no such permanent account number has been allotted to him, or his total income is not chargeable to income-tax or he is not required to obtain a permanent account number under this Act, such person shall furnish a certificate in the prescribed form;
(b) the purpose of his visit outside India;
(c) the estimated period of his stay outside India:
73Provided that no person-
(i) who is domiciled in India at the time of his departure; and
(ii) in respect of whom circumstances exist which, in the opinion of an income-tax authority render it necessary for such person to obtain a certificate under this section, shall leave the territory of India by land, sea or air unless he obtains a certificate from the income-tax authority stating that he has no liabilities under this Act, or the Wealth-tax Act, 1957 (27 of 1957), or the Gift-tax Act, 1958 (18 of 1958), or the Expenditure-tax Act, 1987 (35 of 1987), or that satisfactory arrangements have been made for the payment of all or any of such taxes which are or may become payable by that person :

Provided that no income-tax authority shall make it necessary for any person who is domiciled in India to obtain a certificate under this section unless he records the reasons therefor and obtains the prior approval of the 74[Principal Chief Commissioner or] Chief Commissioner of Income-tax.

(2) If the owner or charterer of any ship or aircraft carrying persons from any place in the territory of India to any place outside India allows any person to whom sub-section (1) or the first proviso to sub-section (1A) applies to travel by such ship or aircraft without first satisfying himself that such person is in possession of a certificate as required by that sub-section, he shall be personally liable to pay the whole or any part of the amount of tax, if any, payable by such person as the Assessing Officer may, having regard to the circumstances of the case, determine.

(3) In respect of any sum payable by the owner or charterer of any ship or aircraft under sub-section (2), the owner or charterer, as the case may be, shall be deemed to be an assessee in default for such sum, and such sum shall be recoverable from him in the manner provided in this Chapter as if it were an arrear of tax.

75(4) The Board may make rules for regulating any matter necessary for, or incidental to, the purpose of carrying out the provisions of this section.

Explanation.-For the purposes of this section, the expressions "owner" and "charterer" include any representative, agent or employee empowered by the owner or charterer to allow persons to travel by the ship or aircraft.

Income Tax Act 1961

What is Interest payable by assessee in case of under-estimate, etc? What is Interest payable by assessee when no estimate made? Section 216 and 217 of Income Tax Act 1961

When assessee deemed to be in default? What is Credit for advance tax? Section 218 and 219 of Income Tax Act 1961

When tax payable and when assessee deemed in default? Penalty payable when tax in default? Section 220 and 221 of Income Tax Act 1961

What is Certificate to Tax Recovery Officer? Tax Recovery Officer by whom recovery is to be effected? Section 222 and 223 of Income Tax Act 1961

What is Validity of certificate and cancellation or amendment thereof? What is Stay of proceedings in pursuance of certificate and amendment or cancellation thereof? Section 224 and 225 of Income Tax Act 1961

What is Other modes of recovery? What is Recovery through State Government? Section 226 and 227 of Income Tax Act 1961

What is Other modes of recovery? What is Recovery through State Government? Section 226 and 227 of Income Tax Act 1961

What is Recovery of tax in pursuance of agreements with foreign countries? What is Recovery of penalties, fine, interest and other sums? What is Tax clearance certificate? Section 228A, 229 and 230 of Income Tax Act 1961

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