Recovery of tax arrear in respect of non-resident from his assets
[Section-422 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Irrespective of the provisions of sections 304(1) or (5), where the person entitled to the income referred to in section 9(2) is a non-resident, the tax chargeable thereon, whether in his name or in the name of his agent who is liable as a representative assessee—
- (a) may be recovered by deduction under the provisions of Chapter XIX-B; and
- (b) any arrears of tax may also be recovered as per the provisions of this Act from any assets of the non-resident which are, or may at any time come, within India.
FAQs on Section 422 of Income Tax Act 2025
What is Section 422 of the Income Tax Act, 2025 about?
Section 422 provides for the recovery of tax arrears from a non-resident in respect of income referred to in section 9(2), regardless of the general provisions in section 304(1) or (5).
Who is covered under Section 422?
Section 422 applies to non-residents who are entitled to income specified under section 9(2) of the Income Tax Act, 2025.
Can tax arrears be recovered from the non-resident directly?
Yes, tax arrears can be recovered directly from the non-resident or from his agent who is liable as a representative assessee.
What methods are allowed for recovery under this section?
Recovery can be done through (a) deduction under Chapter XIX-B, and (b) recovery from any assets of the non-resident that are or may come within India.
Does Section 422 override the provisions of Section 304?
Yes, Section 422 applies notwithstanding anything contained in sub-sections (1) or (5) of Section 304.
Can the assets of a non-resident located in India be attached for recovery?
Yes, any asset of the non-resident that is or may come into India can be used for recovery of tax arrears under this section.
Is recovery under Chapter XIX-B mandatory before proceeding against the assets?
No, the law permits both deduction under Chapter XIX-B and direct recovery from assets; either method can be used.
Is the agent of a non-resident also liable for tax recovery under this section?
Yes, if the tax is chargeable in the name of the agent who is liable as a representative assessee, recovery can be initiated against him as well.
Does this provision apply to all types of income of non-residents?
No, it applies specifically to income referred to in section 9(2) of the Act.
From which date is Section 422 effective?
Section 422 is effective from 1st April, 2026.
Refresh Page