Recovery by suit or under other law not affected
[Section-421 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
The several modes of recovery specified in this Part shall not affect in any way;—
- (a) any other law for the time being in force relating to the recovery of debts due to Government; or
- (b) the right of the Government to institute a suit for the recovery of the arrears due from the assessee; and
- (c) it shall be lawful for the Assessing Officer or the Government, as the case may be, to have recourse to any such law or suit, irrespective of the fact that the tax due is being recovered from the assessee by any mode specified in this Part.
FAQs on Section 421 of Income Tax Act 2025
What is the main objective of Section 421 of the Income Tax Act, 2025?
Section 421 clarifies that the recovery modes provided in the Act do not limit or interfere with other legal remedies available to the Government for recovering tax arrears.
Does Section 421 restrict the Government from using other laws for debt recovery?
No, Section 421 specifically states that it does not affect any other law in force relating to the recovery of debts due to the Government.
Can the Government file a civil suit for recovery of tax dues under Section 421?
Yes, the Government retains the right to institute a suit in a court of law for recovering arrears from an assessee.
Is it mandatory to exhaust all recovery modes under the Income Tax Act before filing a suit?
No, the Government or Assessing Officer may choose any mode, including filing a suit, regardless of the recovery actions already initiated under the Act.
Can both the recovery provisions under the Income Tax Act and other legal remedies be used simultaneously?
Yes, Section 421 allows the use of multiple recovery avenues at the same time without one affecting the other.
Who is authorized to initiate recovery under other laws or through a suit?
The Assessing Officer or the Government, as applicable, is authorized to pursue such actions.
Does Section 421 limit the powers of tax authorities under other statutes?
No, Section 421 explicitly preserves the rights and powers of the tax authorities and the Government under any other applicable laws.
What does the phrase “shall not affect in any way” signify in Section 421?
It means the recovery provisions under the Act do not hinder, override, or invalidate any other statutory recovery processes or rights available to the Government.
Does Section 421 require any prior approval before invoking other laws for recovery?
Section 421 does not mention the need for prior approval; it permits lawful action as per other applicable laws or through suits.
From when is Section 421 effective?
Section 421 is effective from 1st April, 2026, as per the Income Tax Act, 2025.
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