6 days ago
CBDT Removes Arrest From Tax Recovery, Extends Professional Registration Deadline
India’s tax department changed how it collects unpaid taxes.
People who owe taxes can no longer be arrested or sent to prison as part of the prescribed recovery process.
Officials can still attach and sell movable or immovable property to recover the money.
The change applies from April 1, 2026, even though it was announced later.
The tax department also changed registration forms for valuers and authorised income-tax practitioners.
These forms ask about education, certifications, work history and professional experience.
Valuers must provide details about the assets they have valued.
The deadline for registration was moved from September 30, 2026, to March 31, 2027.
Experts said the changes could improve professional standards and make the transition easier.
The CBDT removed arrest and detention from the prescribed process for recovering tax arrears.
The amendment applies retrospectively from April 1, 2026, aligning Rule 225 with the Finance Act, 2026.
Authorities may continue recovering dues through asset attachment, property sales and other mechanisms.
The registration deadline for valuers and authorised income-tax practitioners was extended from September 30, 2026, to March 31, 2027.
Revised Forms 169 and 171 require detailed personal, educational and professional information from applicants.
- Who
- The Central Board of Direct Taxes, tax recovery officers, tax defaulters, valuers and authorised income-tax practitioners.
- What
- The CBDT removed arrest and detention from the prescribed tax-recovery process, revised professional-registration forms and extended the registration deadline.
- Where
- India’s income-tax administration.
- When
- The amendments have retrospective effect from April 1, 2026; the notification was issued on September 17, and the new registration deadline is March 31, 2027.
- Why
- To align tax recovery with the Finance Act, 2026, emphasize property-based recovery and provide more time for professionals to register under the new framework.
Key facts
- Amended rule
- Rule 225 of the Income Tax Rules, 2026.
- Arrest provision
- References to arrest and detention were removed from the prescribed tax-arrears recovery process.
- Continuing recovery methods
- Authorities may attach and sell movable or immovable property and use other recovery mechanisms.
- Valuer application
- Revised Form 169 requests personal details, qualifications, experience and the asset class for registration.
- Practitioner application
- Revised Form 171 applies to authorised income-tax practitioners and requires educational and registration details.
- Registration deadline
- The deadline moved six months, from September 30, 2026, to March 31, 2027.
- Valuer fee
- Applications generally carry a ₹10,000 fee; valuers registered under the Wealth-Tax Act, 1957, are exempt.
Quotes
Amit Maheshwari
Managing partner at AKM Global.
“The revised registration framework reflects a clear policy intent to professionalise tax valuation and representation. By insisting on qualification, disclosure and independence at the entry stage, CBDT is moving towards a more accountable ecosystem for taxpayers and tax professionals alike.”
financialexpress.com
“The extended transition period, together with a more structured application process, should make compliance more orderly and facilitate ease of compliance for professionals by reducing transitional difficulties for registered valuers.”
financialexpress.com
Sources
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