CONTRAVENTION AND PENALTIESCentral

Section 14A of The Foreign Exchange Management Act, 1999 in hindi

Power of recover arrears of penalty.

1 [14A. Power of recover arrears of penalty.--(1) Save as otherwise provided in this Act, the Adjudicating Authority may, by order in writing, authorise an officer of Enforcement not below the rank of Assistant Director to recover any arrears of penalty from any person who fails to make full payment of penalty imposed on him under section 13 within the period of ninety days from the date on which the notice for payment of such penalty is served on him.

(2)The officer referred to in sub-section (1) shall exercise all the like powers which are conferred on the income-tax authority in relation to recovery of tax under the Income-tax Act, 1961 (43 of 1961) and the procedure laid down under the Second Schedule to the said Act shall mutatis mutandis apply in relation to recovery of arrears of penalty under this Act.]

Summary

The authorized officer must be at least the rank of an Assistant Director.
The officer uses the same powers that income-tax authorities use to recover unpaid taxes under the Income-tax Act, 1961.

Practical examples

1Rohan is fined under the Act but does not pay by the 90-day deadline. The Adjudicating Authority writes an order authorizing an Assistant Director of Enforcement to recover the money using income-tax recovery procedures.

2A company ignores a penalty notice for four months. A Deputy Director (a rank above Assistant Director) is authorized to seize the company's bank accounts to recover the arrears, just as a tax officer would.

FAQ

1. Who is allowed to collect the unpaid penalties?

An officer of Enforcement not below the rank of Assistant Director can be authorized to collect the unpaid penalties.

2. What rules does the officer follow to collect the money?

The officer follows the procedure laid down under the Second Schedule to the Income-tax Act, 1961.

Test yourself

1.Under Section 14A of The Foreign Exchange Management Act, 1999, what is the minimum rank an officer must hold to be authorized to recover penalty arrears?

2.Under Section 14A of The Foreign Exchange Management Act, 1999, what existing law provides the procedures for the authorized officer to recover the unpaid penalties?

3.Under Section 14A of The Foreign Exchange Management Act, 1999, how long must a person fail to make full payment before this recovery process can begin?

4.Under Section 14A of The Foreign Exchange Management Act, 1999, how is the penalty mentioned in Section 13 related to this provision?

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