Sections 33 and 37-39 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Four sections of the recovery Chapter widen where and how tax can be recovered. Section 33 decides which Tax Recovery Officer acts and lets a certificate move to another. Section 37 allows recovery through a State Government. Section 38 allows a certificate to go to the Board when the assessee has property in another country with which an agreement exists. Section 39 keeps suits and other laws open. The text is read from the Act as enacted and published in the Gazette of India on 27 May 2015.
The Tax Recovery Officer who acts is the one within whose area the assessee carries on business, has the principal place of business, resides or has movable or immovable property, or who has been assigned jurisdiction under section 6. A certificate may be sent to another Tax Recovery Officer. Where the assessee has property outside India in a country with a covered agreement, the Tax Recovery Officer may forward a certificate to the Board. These modes do not bar suits or other laws for recovering debts due to the Government.
Section 33: which Tax Recovery Officer acts
Section 33(1) says the Tax Recovery Officer competent to take action under section 31 shall be the Tax Recovery Officer:
| Basis | Detail |
|---|---|
| (a)(i) | Within whose jurisdiction the assessee carries on his business |
| (a)(ii) | Within whose jurisdiction the principal place of business of the assessee is situate |
| (a)(iii) | Within whose jurisdiction the assessee resides |
| (a)(iv) | Within whose jurisdiction any movable or immovable property of the assessee is situate |
| (b) | Who has been assigned jurisdiction under section 6 |
The grounds are alternatives, joined by "or", so more than one officer may be competent on the same facts. The assignment of jurisdiction under section 6 is covered in our article on sections 6 and 7.
Section 33(2) lets that officer send a certificate, in such manner as may be prescribed, specifying the tax arrear to be recovered, to another Tax Recovery Officer within whose jurisdiction the assessee resides or has property, if the first-mentioned officer:
- (a) is not able to recover the entire amount by sale of the property, movable or immovable, within his jurisdiction; or
- (b) is of the opinion that, for the purpose of expediting, or securing, the recovery of the whole, or any part, of the amount under this Chapter, it is necessary to send such certificate.
Under section 33(3), the second Tax Recovery Officer shall, on receipt, assume jurisdiction for recovery of the arrear specified and proceed to recover it in accordance with the provisions of this Chapter. The Rules of 2015, as notified on 2 July 2015, say a statement of tax arrears under section 31 or section 33 is drawn up in Form 5; see our article on rules 4 to 8 and Forms 1 to 5.
Section 37: recovery through a State Government
Section 37 applies "if the recovery of tax in any area has been entrusted to a State Government under clause (1) of article 258 of the Constitution". In that case, the State Government may direct, with respect to that area or any part of it, that tax shall be recovered therein "with, and as an addition to, any municipal tax or local rate, by the same person and in the manner as the municipal tax or local rate is recovered".
The section only works where recovery in the area has been entrusted to the State Government under the article named. The Act does not say where that has been done, and this article names no State.
Section 38: recovery in a country or territory outside India
Section 38(1) says the Tax Recovery Officer may, in a case where an assessee has property in a country or a specified territory outside India, forward a certificate to the Board for recovery of the tax arrears from the assessee. The condition is that the Central Government or any specified association in India has entered into an agreement with that country or territory:
- under section 90 or section 90A of the Income-tax Act; or
- under sub-sections (1), (2) or sub-section (4) of section 73 of this Act, as the case may be,
for the purposes of recovery of tax.
Section 38(2) says that on receipt of the certificate from the Tax Recovery Officer, the Board may take such action as it may deem appropriate having regard to the terms of the agreement with such country or territory.
A printing point: section 38(2) speaks of the certificate "under sub-section (3)", but section 38 has no sub-section (3); the forwarding of the certificate is in sub-section (1). The reference is printed as it is and is not corrected here.
The agreements themselves are dealt with in section 73, and the general idea of treaty relief is explained in our guide on DTAA. For the foreign-exchange law that governs holding assets outside India, see our guide to section 4 of the Foreign Exchange Management Act, 1999. If you hold property in more than one country, a FEMA advisory conversation can map which rules and agreements bear on you.
Section 39: suits and other laws are not affected
Section 39(1) says the several modes of recovery specified in this Chapter shall not affect in any way:
- (a) any other law for the time being in force relating to the recovery of debts due to the Government; or
- (b) the right of the Government to institute a suit for the recovery of the tax arrears from the assessee.
Section 39(2) says 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". So the Chapter's modes are not exclusive. The section is silent on any cap on running routes together, and this article adds none.
How the pieces fit together
The recovery Chapter works in layers. The Assessing Officer's route and the certificate are in sections 30 and 31. The modes are in section 32. The sections in this article add the jurisdiction rule, a State Government route, a foreign route and a saving for other remedies.
An example
Imran Sheikh lives in one city and owns a plot in another State. The Tax Recovery Officer for the city draws up a certificate and recovers part of the arrear by sale of what is in his area. Because he cannot recover the whole by sale of property in his jurisdiction, he sends a certificate to the Tax Recovery Officer for the other area under section 33(2)(a), who assumes jurisdiction under section 33(3). Separately, Imran holds a flat in a country with which an agreement for recovery of tax exists. The Tax Recovery Officer forwards a certificate to the Board under section 38(1), and the Board acts having regard to the terms of the agreement. The Government is not barred from a suit under section 39.
Need help with property or accounts in more than one place?
When an assessee has property in several areas or countries, recovery can move between officers and across borders. Our FEMA advisory team can help you understand how your overseas holdings, the agreements and the foreign-exchange rules fit together.
Key takeaways
- The competent Tax Recovery Officer is one with jurisdiction by business, principal place of business, residence or property, or one assigned under section 6.
- A certificate may be sent to another Tax Recovery Officer if the first cannot recover everything or thinks it necessary.
- Recovery through a State Government applies where recovery in an area has been entrusted to it under article 258(1) of the Constitution.
- For property in a covered country or territory, the Tax Recovery Officer may forward a certificate to the Board.
- Suits and other laws on recovery of Government debts remain open alongside the Chapter's modes.
- Later Finance Act amendments to sections 33 and 37 to 39 must be checked before acting. Sections 90 and 90A of the Income-tax Act, 1961 are named as printed in 2015; check the corresponding provision of the current income-tax law.
Read next
- Section 32: modes of recovery of tax dues
- Section 73: agreements with foreign countries
- Section 34: recovery from a company in liquidation
- DTAA: double taxation avoidance agreements explained
Disclaimer: Based on the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 as enacted and published in the Gazette of India on 27 May 2015, and on the Rules of 2015 as notified on 2 July 2015, as consulted on 2 October 2026. Later Finance Act amendments, amendment rules and the current income-tax law should be checked. This article is general information, not legal advice; check the official text before acting.