Section 421 of the Income-tax Act, 2025

Where this section sits

Section 421 is in Chapter XIX — Collection and Recovery of Tax, which runs from section 390 to section 430.

← Section 420  ·  Section 422 →

What this section does

The section preserves other routes of recovery. The several modes of recovery specified in this Part do not affect in any way any other law in force relating to the recovery of debts due to Government, or the right of the Government to institute a suit for the recovery of arrears due from the assessee. It then makes it lawful for the Assessing Officer or the Government to have recourse to any such law or suit, irrespective of the fact that the tax due is being recovered from the assessee by any mode specified in this Part of the Chapter.

Why it is there

A Part that sets out a complete recovery machinery invites the argument that it is the only machinery available. The section forecloses that argument, keeps the Government's ordinary rights as a creditor intact, and makes clear that using the Act's own modes does not amount to an election against them.

Who it applies to

• An assessee from whom tax arrears are due
• The Government, suing for arrears or proceeding under another recovery law
• The Assessing Officer, taking recourse to such a law or suit

What this means in practice

Two distinct things are saved. The first is any other law in force relating to the recovery of debts due to Government; the second is the Government's right to institute a suit for the arrears. The closing words are what matter in practice: recourse to either is lawful "irrespective of the fact that the tax due is being recovered from the assessee by any mode specified in this Part", so a certificate proceeding already running is not an answer to a suit, and a suit is not an answer to the certificate. The section confers no new power of recovery; it only prevents the modes in this Part from being read as exclusive.

An example

Arrears are being recovered from an assessee through the modes provided in this Part. The Government nevertheless institutes a suit for the same arrears. The assessee cannot resist it on the ground that the statutory machinery is already engaged — the section makes recourse to a suit lawful irrespective of recovery proceeding under this Part, and equally preserves any other law relating to recovery of debts due to Government.

Where you meet this section

A taxpayer rarely meets this section in a notice. It surfaces when the Government sues for arrears or invokes another recovery law while proceedings under this Part are already on foot, and it is the answer to an objection that the Act's own modes must be exhausted first.

The words themselves

What people get wrong

• Arguing that the modes in this Part are exclusive. The section says in terms that they do not affect any other law relating to recovery of debts due to Government or the right to sue.
• Arguing that the Government must elect one route. Recourse to another law or to a suit is lawful irrespective of recovery already proceeding under this Part.
• Reading the section as creating a power of recovery. It preserves powers that exist elsewhere; it grants none.
• Assuming only the Government may take that recourse. The section names the Assessing Officer or the Government, as the case may be.

What this replaced

• 232 - Recovery by suit or under other law not affected

See the full 1961 to 2025 concordance.

Read with

• Section 413
• Section 414
• Section 416