§ 499
Chapter XXIII — Miscellaneous
Certain transfers to be void
Income-tax Act, 2025
✍️ A plain-language summary of this section is being prepared. Below is the official text.
📜 Official text
499. (1) Where, during the pendency of any proceeding under this Act or after the
completion thereof, but before the service of notice by the Tax Recovery
Officer as per the procedure specified under section 413, any assessee creates a
charge on, or parts with the possession of, any of his assets in favour of any other
person, such charge or transfer shall be void as against any claim in respect of any
tax or any other sum payable by the assessee as a result of the completion of the
said proceeding or otherwise.
(2) The charge or transfer as referred to in sub-section (1) shall not be void if it is
made—
( a) for adequate consideration and without notice of the pendency of such
proceeding or, as the case may be, without notice of such tax or other
sum payable by the assessee; or
( b) with the previous permission of the Assessing Officer.
(3) This section applies to cases where the amount of tax or other sum payable or
likely to be payable exceeds ` 5000 and the assets charged or transferred exceed
` 10000 in value.
(4) For the purposes of this section,––
( a) “assets” means land, building, machinery, plant, shares, securities, fixed
deposits in banks, and virtual digital asset, to the extent to which any of
the said assets do not form part of the stock-in-trade of the business of
the assessee;
( b) the modes of creating a charge on or parting with the possession of such
assets shall include sale, mortgage, gift, exchange or any other mode of
transfer.
Provisional attachment to protect revenue in certain cases.
Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.
Related sections
§ 500Provisional attachment to protect revenue in certain cases§ 501Director or Director. Service of notice, generally§ 502Authentication of notices and other documents§ 503Service of notice when family is disrupted or firm etc., is dissolved§ 504Service of notice in case of discontinued business§ 505Submission of statement by a non-resident having liaison office