TAX MANAGEMENTCentral

Section 39 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015

(1)The several modes of recovery specified in this Chapter shall not affect in anyway—
1. (a)any other law for the time being in force relating to the recovery of debts due to the Government; or
2. (b)the right of the Government to institute a suit for the recovery of the tax arrears from the assessee.
(2)It shall be lawful for the Assessing Officer, or the Government, to have recourse to any such law or suit, notwithstanding that the tax arrears are being recovered from the assessee by any mode specified in this Chapter.

Summary

The various ways to collect tax mentioned in the Act do not stop the government from using other laws to get its money.
The government always maintains its right to file a civil lawsuit to recover tax arrears from an assessee.
Tax officers or the government can use these other laws or suits even if they are already trying to collect the tax through the Act's special modes.
Using one method of recovery, like deducting from a salary, does not prevent the government from also starting a lawsuit.
These rules ensure that the government's ability to recover debts is not restricted to just this Act.

Practical examples

1While a Tax Recovery Officer is trying to sell Mrs. Kapoor's local office building under the 2015 Act, the Government simultaneously files a civil lawsuit to attach her personal luxury vehicles under a different debt recovery law.

2The Assessing Officer initiates recovery under the Act but then discovers a more efficient way to recover the debt through a separate law relating to government dues. Section 39 allows them to switch or use both methods.

FAQ

1. Does Section 39 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 allow the government to sue an assessee?

Yes, Section 39 specifically protects the right of the Government to institute a suit for the recovery of tax arrears.

2. Can the government use other laws to collect tax instead of just the Black Money Act under Section 39?

Yes, Section 39 states that the modes of recovery in the Act do not affect any other law for recovering debts due to the Government.

3. Can two different recovery methods be used at the same time under Section 39 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015?

Yes, it is lawful to use other laws or suits even if tax arrears are already being recovered by a mode specified in the Act, according to Section 39.

Test yourself

Q1.Under Section 39 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, what is the effect of the Act's recovery modes on other laws?

Q2.According to Section 39 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, who has the right to institute a suit for recovery?

Q3.Under Section 39 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, when is it lawful to have recourse to a separate suit?

Q4.Section 39 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 ensures that recovery by suit is:

38PreviousSection 38 Recovery of tax dues in pursuance of agreements with foreign countries or specified territory.40NextSection 40 Interest for default in furnishing return and payment or deferment of advance tax.

←Section 38 Section 40→