CBDT removes arrest and imprisonment as prescribed route for tax recovery

Tax defaulters will no longer face arrest and detention as a prescribed recovery route to recover tax. The central board of direct taxes(CBDT) has amended Rule 225, deleting the provision that empowered tax recovery authorities to use arrest and imprisonment for recovery of outstanding dues.

In a September 17 notification, the board also removed the corresponding reference to arrest from the police-assistance provision and deleted several other Rule 225 clauses.

Attachment and sale of movable and immovable property and appointment of a receiver remain available recovery mechanisms.


The change marks a clear shift in the prescribed recovery toolkit away from personal detention and towards property-based recovery.

The amendment, however, does not by itself extinguish any separate arrest power that may exist elsewhere under the Income-tax Act.

The department has also significantly tightens the gatekeeping for valuers, requiring far more granular disclosure before registration. Under the revised Form 169, applicants must disclose their qualifications, professional history and valuation work, including details of assets valued or works executed during the preceding three years.

Registration is sought separately for each asset class, with the form covering categories ranging from land, buildings and plantations to mines, securities, business assets, machinery, jewellery and works of art.

The tax department has given valuers and authorised income-tax practitioners six more months, until March 31, 2027, to complete their transition to the registration framework under the new Income-tax Act.