The document discusses various aspects of tax recovery and refund in India. It covers recovery of tax from other parties holding money for the taxpayer, detention of taxpayer property, waiver of interest charges, penalties for tax defaults, modes of tax recovery including certificates to tax recovery officers and attachment of property or salary. It also discusses tax clearance certificates, procedures for claiming refunds within one year, automatic refunds from appeal or revision orders, potential withholding of refunds if it affects revenue, and interest payments on refunds or excess refund amounts.

1. Recovery And Refund Of Tax
James Thomas
Roll No:6
M2

2. Recovery of tax
Recovery of tax from another person, who holds or may subsequently hold money for or
on account of such person, to pay to the credit of the Central or a State Government.
Detention of any movable or immovable property belonging to such person, until the
amount payable is paid.
Waiver of interest[Sec.220(2A)]
The Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or
Commissioner may reduce or waive the amount of interest paid or payable by an assesse on
his application u/s 220(2) if he is satisfied that:
1) Payment of such amount has caused or would cause genuine hardship to the assesse;
2) Default in the payment of the amount on which interest has been paid or was payable was
due to circumstances beyond the control of the assesse; and
3) The assesse has co-operated in any inquiry relating to the assessment or any proceedings
for the recovery of any amount due from him.
The order accepting or rejecting the application, in full or part, (after providing an
opportunity of being heard to the assesse ) shall be passed within twelve months from the end
of the month in which the application received.

3. Assessee in default and penalty for tax in default (Sec. 221)
In the following cases, the assesse is deemed to be in default:
a) When an assessee is in default or is deemed to be in default in making a payment of
tax. In case of such default the amount of the arrear is to be paid such to the
Assessing Officer may direct , and in the case of a continuing default, such further
amount or amounts as the Assessing Officer may, from time to time direct. However,
that the total amount of penalty does not exceed the amount of tax in arrears.
Provided that before levying any such penalty, the assessee shall be given a reasonable
opportunity of being heard. Provided further that where the assessee proves to the
satisfaction of the Assessing Officer that the default was for good and sufficient
reasons, no penalty shall be levied under this section.
b) If the assesse has allowed to make payment by installment and assesse commits delay
in payment of instalments with in the time fixed, the assesse is deemed to be in
default regarding the whole amount then outstanding, and the remaining instalments
shall immediately become due on the date on which the default is committed. In other
words, the assessee will have to pay the total amount then outstanding in one
lump-sum.

4. Modes of recovery
(1) Certificate to Tax Recovery Officer(Sec.222) When assessee is in default in making
payment, the Tax Recovery Officer will draw up under his signatures statement
(certificate)in the prescribed form, and shall proceed to recover the specified amount
from the assessee by (a) attachment and sale of the assesse’s movable/immovable
property;(b) arrest of the assessee and his detention in the prison; and (c) appointing a
receiver for the management of his properties .
(2) Other modes of recovery.(Sec.226).(a) Where no certificate has been drawn up by the
Tax Recovery Officer, the Assessing Officer mar recover the tax by any one or more of
the following modes of recovery:
(a) Attachment of salary.
(b) Garnishee order.
(c) From the court.
(d) By sale of movable property.
(e) Through the state government.
(f) Recovery of tax pursuance of an agreement with foreign government.
Tax Clearance Certificate(Sec .230)

5. Refund of tax(Sec .237)
Refund arises .(1)When tax deducted at source is more than tax payable;(2)When advance
tax paid or tax paid on self-assessment exceeds the tax liability;(3)by rectification of
mistake;(5)by order of judgement in an appeal; and (6)as a result of double taxation relief.
Person entitled to claim refund in certain special cases(Sec.238)
Procedure for claiming refund(Sec.239) The assessee has to apply for a refund. The claim
should be made within one year, from the end of the assessment year to which the claim
relates:
Refund on Appeal(sec.240). Where the refund becomes due to the assesse as a result of
rectification of mistake or any order passed in appeal or revision, the Assessing Officer shall
refund to the assesse without any application.

6. Withholding of refund in certain cases(Sec.241A)
For every assessment year commencing on or after the 1st day of April, 2017, where refund of any amount
becomes due to the assessee under the provisions of sub-section (1) of section 143 and the Assessing Officer is
of the opinion, having regard to the fact that a notice has been issued under sub-section (2) of section 143 in
respect of such return, that the grant of the refund is likely to adversely affect the revenue, he may, for
reasons to be recorded in writing and with the previous approval of the Principal Commissioner or
Commissioner, as the case may be, withhold the refund up to the date on which the assessment is made.
Interest on refund(Sec.224A)
Interest on Excess Refund(Sec. 234D)

7. Thank you