Section 417
Section 417: recovery through State Government
Section 417 deals with a specific administrative arrangement: where the Central Government has entrusted recovery of tax in a given area to a State Government under Article 258(1) of the Constitution, that State Government can direct recovery of the tax alongside municipal tax or local rates in that area.
What Section 417 says
"If the recovery of tax in any area has been entrusted to a State Government under article 258(1) of the Constitution, the State Government may direct, with respect to that area or any part thereof that tax shall be recovered therein with, and as an addition to, any municipal tax or local rate, by the same person and in the same manner as the municipal tax or local rate is recovered."
Frequently asked questions
When does Section 417 apply?
Only where the Central Government has entrusted recovery of income-tax in a particular area to a State Government under Article 258(1) of the Constitution.
How is tax recovered under this arrangement?
As an addition to municipal tax or local rate in that area, collected by the same person and in the same manner as the municipal tax or local rate itself.
Related sections
Want this applied to your actual filing, not just explained?
Talk to our tax team about a tax recovery matterLast updated 9 September 2026