Section 228A of Income Tax Act for AY 2023-24

Section 228A of Income Tax Act 1961 amended by Finance Act and IT Rules. Recovery of tax in pursuance of agreements with foreign countries.

Amended and updated notes on section 228A of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Recovery of tax in pursuance of agreements with foreign countries.

Chapter XVII (Sections 190 to 234G) of the Income Tax Act 1961 deals with the provisions related to collection and recovery of tax. Section 228A of IT Act 1961 provides for Recovery of tax in pursuance of agreements with foreign countries.

Recently, we have discussed in detail section 227 (Recovery through State Government) of IT Act 1961. Today, we learn the provisions of section 228A of Income-tax Act 1961. The amended provision of section 228A is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 228A of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.

Section-228A: Recovery of tax in pursuance of agreements with foreign countries

Section 228A(1) of Income Tax

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 resident, or a person having any property in India, the Board may forward such certificate to any Tax Recovery Officer having jurisdiction over the resident, or 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.

Section 228A(2) of Income Tax

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 is a resident of a country (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), or has any property 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.


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