Amendment of section 179.
55. In section 179 of the Income-tax Act,––
(a) in the marginal heading, the words “in liquidation” shall be omitted;
(b) in the Explanation, after the word “interest”, the word “, fees” shall be inserted.
Notes on Clauses:
Clause 55 seeks to amend the section 179 of the Income-tax Act relating to liability of directors of private company in liquidation. It provides for recovery of tax dues of a private company from its directors, in cases where such tax dues cannot be recovered from the company itself.
The marginal heading of the said section reads as liability of directors of private company in liquidation. However, the provisions of the section do not deal with companies in liquidation. Therefore, it is proposed to omit the words “in liquidation” from the marginal heading of the said section.
It is further proposed to include “fees” within the scope of the expression “tax due” in the Explanation to the said section.
These amendments will take effect from 1st April, 2022.
