Income Tax (IT) Attachment Order is an order issued under Sec.226(3) of Income Tax Act, 1961, by an Income Tax Department for recovery of statutory dues from a person under respective law. The order is issued in case of income tax default.
Unlike garnishee order which is issued in two stages viz, order nisi and order absolute, the attachment order issued by the Income Tax Department is direct.
There are two ways to obtain an attachment order :-
- Both the creditor and the debtor agree (at the Disputes Tribunal, mediated tribunal hearing, Tenancy Tribunal hearing or District Court hearing) that the debt will be repaid to you this way.
- Either party applies to the court for an attachment order. If you (the creditor) apply, you’ll need to provide details about the other party (the debtor) including their date of birth and details of their employer or benefit number (if you know what it is). If the debtor applies, they have to provide their employment or benefit details.
The Assessee’s credit balance in the bank can be attached. The attachment may be for debt due and payable, debts due but not payable on date, amount received subsequently.
On receipt of this order, banker is required to remit the desired amount to income tax authorities.
***When both Garnishee order and Attachment Order are received simultaneously, priority should be given to attachment order.
Thus, in simple words, an Attachment order is issued by the Government authority say Income Tax, Sales Tax, Customs department for recovery of statutory dues from a person under the respective law which governs the concern department.