Draft Income Tax Rule 226, 227, 228, 229, 230, 231-Powers of Tax Recovery Officer; Prescribed Authority & Forms for Tax Clearance (Sec 420); Certificate Production; Refund Claim (Sec 434); Application Form (Sec 440)
Extract of Rules 226 to 231 of the Draft Income-tax Rules, 2026 lays down procedural provisions relating to tax recovery, tax clearance certificates, refund claims, and applications for immunity. Rule 226 empowers the Chief Commissioner or Commissioner to authorise a Tax Recovery Officer (TRO) to exercise powers of an Assessing Officer under section 287 for rectifying mistakes apparent on record in cases where a certificate has been drawn under section 413 for recovery of sums payable; such powers are exercised concurrently with the Assessing Officer. Rule 227 prescribes the competent authority for issuing tax clearance certificates under section 420, distinguishing between persons domiciled and not domiciled in India, and specifies that applications under section 420(5) are to be filed before the jurisdictional Assessing Officer. Rule 228 prescribes Forms No. 154 to 159 for undertakings, no-objection certificates, information statements, applications, and tax clearance certificates, and mandates forwarding copies to the jurisdictional Chief Commissioner or Director General. Rule 229 requires persons leaving India to produce a tax clearance or exemption certificate before a Customs Officer if requested. Rule 230 provides that refund claims under section 434 must be filed in Form No. 160 along with the relevant agreement. Rule 231 mandates that applications seeking immunity from penalty or prosecution under specified sections be made in Form No. 161.
Extract of Rule No. 226, 227, 228, 229, 230, 231 of Draft Income-tax Rules, 2026
Rule 226
Tax recovery officer to exercise or perform certain powers and functions of an Assessing
Officer under section 413 of the Act.
1. The Chief Commissioner or the Commissioner, by general or special order in writing, may authorise a Tax Recovery Officer to exercise or perform the powers and functions conferred on or assigned to an Assessing Officer under section 287 for rectifying any mistake apparent from record in respect of an order passed by the Assessing Officer consequent to which a sum is payable and the Tax Recovery Officer has drawn a Certificate under section 413 in respect of such sum.
2. The Tax Recovery Officer shall exercise or perform such powers and functions concurrently with the Assessing Officer.
Rule 227
Prescribed authority for tax clearance certificates under section 420 of the Act.
1. For the purposes of section 420(1), the prescribed authority shall be the Chief Commissioner of Income-tax or the Director-General of Income-tax, as the case may be, who has jurisdiction over the persons not domiciled in India or any other income-tax authority authorized by such Chief Commissioner or Director-General in this behalf.
2. For the purposes of section 420(3), the prescribed authority shall be the Chief Commissioner of Income-tax having jurisdiction over the persons domiciled in India or any other income-tax authority authorised by him in this behalf.
3. For the purposes of section 420(5), application for certificate shall be filed to the Assessing Officer who has jurisdiction to assess such person.
Rule 228
Forms and certificates for the purpose of section 420 of the Act.
1. An undertaking to be furnished to the prescribed authority by a person not domiciled in India from the persons referred to in clause (i) or clause (ii) of section 420(1), as the case may be, shall be in Form No. 154.
2. A no-objection certificate to be issued by the prescribed authority under section 420(1) shall be in Form No. 155 and shall be valid for the period mentioned therein.
3. The information to be furnished by a person domiciled in India shall be in Form No. 156.
4. An application under section 420(5) may be made in Form No. 158.
5. A tax clearance certificate issued under section 420(5) shall be in Form No. 159 and shall be valid for the period mentioned therein.
6. A copy of the undertaking referred to in sub-rule (1) and the no-objection certificate referred to in sub-rule (2) shall be forwarded to the Chief Commissioner or Director General, as the case may be, having jurisdiction over the persons referred to in section 420(1).
Rule 229
Production of certificate under section 420 of the Act.
(1) Any person leaving India shall, at the request of any Customs Officer, produce to him for examination, the tax clearance certificate or the exemption certificate, as the case may be.
Rule 230
Refund claim under section 434 of the Act.
A claim for refund under section 434 shall be made in Form No. 160, by the claimant himself or through a duly authorised agent, and shall be accompanied by a copy of an agreement or other arrangement referred to in section 434.
Rule 231
Form of application under section 440 of the Act.
An application to the Assessing Officer to grant immunity from imposition of penalty under section 439 and from initiation of proceedings under section 478 or section 479 shall be made in Form No. 161
