Application of Certain Provisions of the Income Tax Act as per Debts Recovery Tribunals

The provisions of the Income Tax Act, 1961 are applicable to the Debts Recovery Tribunals (DRTs) in certain respects. These provisions are applicable to the following matters:

  • Computation of interest on the debt: The interest on the debt due to the creditor is computed in accordance with the provisions of the Income Tax Act, 1961.
  • Attachment of the debtor’s property: The DRT can attach the debtor’s property in accordance with the provisions of the Income Tax Act, 1961.
  • Sale of the debtor’s property: The DRT can sell the debtor’s property in accordance with the provisions of the Income Tax Act, 1961.
  • Payment of the debt: The proceeds of the sale of the debtor’s property are paid to the creditor in accordance with the provisions of the Income Tax Act, 1961.

The following provisions of the Income Tax Act, 1961 are not applicable to the Debts Recovery Tribunals (DRTs):

  • Provisions relating to appeal: The provisions relating to appeal under the Income Tax Act, 1961 are not applicable to the orders passed by the DRTs.
  • Provisions relating to revision: The provisions relating to revision under the Income Tax Act, 1961 are not applicable to the orders passed by the DRTs.

Here are some MCQs on the application of certain provisions of the Income Tax Act as per Debts Recovery Tribunals (DRTs) under the Recovery of Debts and Bankruptcy Act, 1993:

  1. Which of the following provisions of the Income Tax Act, 1961 are applicable to the Debts Recovery Tribunals (DRTs)?
    • Provisions relating to computation of interest on the debt.
    • Provisions relating to attachment of the debtor’s property.
    • Provisions relating to sale of the debtor’s property.
    • Provisions relating to payment of the debt.
    • All of the above
    • The answer is All of the above. The provisions of the Income Tax Act, 1961 relating to computation of interest on the debt, attachment of the debtor’s property, sale of the debtor’s property, and payment of the debt are applicable to the Debts Recovery Tribunals (DRTs).
  2. Which of the following provisions of the Income Tax Act, 1961 are not applicable to the Debts Recovery Tribunals (DRTs)?
    • Provisions relating to appeal.
    • Provisions relating to revision.
    • Provisions relating to computation of interest on the debt.
    • Provisions relating to attachment of the debtor’s property.
    • The answer is Provisions relating to appeal and revision. The provisions of the Income Tax Act, 1961 relating to appeal and revision are not applicable to the Debts Recovery Tribunals (DRTs).