CBDT Removes Arrest Provisions From Tax Recovery Rules

India’s tax authority changed some tax recovery rules.

Tax officers can no longer arrest someone for a tax default under these provisions.

The change applies from April 1, 2026, even though the notification was issued later.

The rules also remove arrest and detention language for cases where the person who owed tax has died.

The change follows the Budget 2026-27 announcement.

That announcement said some minor technical mistakes should lead to fines instead of prosecution.

Examples include not producing account books or documents and issues involving tax deducted at source.

The amended rule concerns recovering unpaid taxes by attaching and selling property.