The Central Board of Direct Taxes (CBDT) has amended Rule 225 of the Income-tax Rules by removing arrest and imprisonment as a prescribed mechanism for recovering outstanding tax dues.
Following the amendment, tax recovery authorities will no longer have arrest and detention listed as a recovery route under the amended provision. The existing framework continues to provide other recovery measures, including the attachment and sale of movable or immovable property and the appointment of receivers for recovering tax arrears.
The amendment specifically concerns the recovery mechanism prescribed under Rule 225. It does not, by itself, eliminate any separate statutory powers relating to arrest that may exist under other provisions of the Income-tax Act.
The change therefore modifies the prescribed procedure for recovery of outstanding tax demands while leaving other legally available recovery mechanisms in place.CASansaar