26.4 C
Bengaluru
Wednesday, December 4, 2024

under Income Tax Act,What is the prescribed timeline for the sale of immovable property that has been seized?

Under the Income Tax Act of India, there are provisions for confiscation of assets in case of unpaid tax liability. In such cases immovable property like land or building can be confiscated. After seizing the property, the Income Tax Department may proceed with the sale of the property to recover the unpaid tax.

The time limit for sale of immovable property seized under the Income Tax Act is prescribed in Section 281B of the Act. According to this provision, if the confiscated immovable property is in the form of building or land, it should be sold within 12 months from the end of the financial year in which the confiscation order is issued. In the case of any other type of immovable property, the sale must be completed within six months from the end of the financial year in which the confiscation order is issued.

It is important to note that the timeline for the sale of the foreclosed property is subject to certain conditions. For example, if an application is made to the appropriate authority for the release of the seized property, the time of sale may be extended. Similarly, if the property is subject to any legal proceedings, the time may be extended till the completion of the legal proceedings.

It is worth noting that the Income Tax Department has to issue a sale notice at least 30 days before selling the property. The notification should be published in at least two newspapers, one of which should be in the language of the area where the property is located. The notice should contain details such as the reserve price of the property and the terms and conditions of sale.

In cases where the property is not sold within the stipulated time, the Income Tax Department may apply to the appropriate authority for extension of time. If the reserve price of the property is not met or there are no bidders for the property, an extension may be granted on certain grounds.

The Income Tax Act of India provides for a fixed time for sale of seized immovable property. The timeline is subject to certain conditions such as completion of legal proceedings or filing of an application for release of property. The Income Tax Department is required to issue a notice of sale of the property and if the property is not sold within the stipulated time, an extension of time may be sought.

Related News

spot_img

Revenue Alerts

spot_img

News

spot_img