Section 289 of the Income-tax Act, 1961: Receipt to Be Given
Section 289 established a straightforward legal obligation: a receipt must be given for money paid or recovered under the Income-tax Act. The corresponding provision in the Income-tax Act, 2025 is Section 517.
1. Section 289 of the Income-tax Act, 1961 - statutory text
This provision appears in Chapter XXIII (Miscellaneous) of the 1961 Act. Its language is mandatory: the word shall requires the giving of a receipt. It covers both a payment made by a taxpayer and money recovered through the statutory recovery process.
2. Section 517 of the Income-tax Act, 2025
The successor provision, Section 517, is also titled Receipt to be given and states:
The language is unchanged in substance. The 2025 provision continues to require documentary acknowledgment of money paid or recovered under that Act. It does not, by itself, specify a prescribed receipt format, a fixed issuance deadline or a particular issuing officer.
3. Meaning and scope of the receipt requirement
Money paid
This ordinarily includes amounts remitted under the applicable income-tax law, such as tax, interest, penalty or other statutory dues. The exact procedure and proof of payment depend on the type of payment and the relevant rules.
Money recovered
The words or recovered extend the requirement beyond voluntary payment. Where tax dues are collected through a legally authorised recovery mechanism, the amount received or recovered must be acknowledged. For example, separate receipt obligations may also arise under specific recovery provisions.
What counts as a receipt?
Section 289 and Section 517 establish the obligation but do not prescribe a single universal format. Depending on the transaction, proof may take the form of a government challan acknowledgment, an electronic payment receipt or an official recovery receipt issued under the applicable process. A bank debit alert alone should not automatically be treated as conclusive proof that the tax payment was credited to the correct account.
4. Practical examples
| Situation | Receipt principle | Practical record to retain |
|---|---|---|
| Self-assessment tax paid electronically | The payment must be acknowledged under the applicable tax payment process. | Challan receipt, payment reference and tax portal confirmation. |
| Outstanding demand paid after notice | A receipt is required for money paid under the Act. | Payment acknowledgment linked to the demand and assessment year or tax year. |
| Amount recovered through statutory recovery action | The requirement also applies to money recovered, not only voluntary payments. | Official recovery receipt or written acknowledgment, together with relevant recovery documents. |
5. What to do if a receipt is missing or incorrect
- Check the payment reference, challan details and bank transaction status.
- Verify that the payment is reflected against the correct PAN and applicable assessment year or tax year.
- Where a recovery officer or other authority collected the money, request an official acknowledgment identifying the amount and recovery reference.
- Preserve correspondence, demand notices, bank records and portal acknowledgments.
- If the amount is not credited correctly, use the relevant portal grievance or payment correction process, or seek assistance from the jurisdictional authority.
These are practical record-keeping measures. The statutory section itself does not establish a separate grievance procedure or prescribe these particular steps.
6. Section 289 and Section 517 - comparison
| Point | 1961 Act | 2025 Act |
|---|---|---|
| Provision | Section 289 | Section 517 |
| Heading | Receipt to be given | Receipt to be given |
| Coverage | Money paid or recovered under the 1961 Act | Money paid or recovered under the 2025 Act |
| Core obligation | Receipt must be given | Receipt must be given |
| Specific receipt format in this section | Not specified | Not specified |
7. Related provisions
For amounts collected through recovery from third parties, see the specific recovery procedures in Section 226 of the 1961 Act and Section 416 of the 2025 Act. Those provisions should be read alongside the general receipt obligation where applicable.
For further reading on this website, see Section 288B - rounding of amounts payable and refunds and Section 290 - indemnity.
8. Frequently asked questions
What does Section 289 of the Income-tax Act, 1961 provide?
It requires that a receipt be given for any money paid or recovered under the Income-tax Act, 1961.
What is the corresponding provision under the Income-tax Act, 2025?
Section 517 of the Income-tax Act, 2025 carries forward the receipt requirement, effective from 1 April 2026.
Does the receipt requirement cover compulsory tax recovery?
Yes. Both sections use the words money paid or recovered, so the requirement is not limited to voluntary payments.
Does Section 517 prescribe a particular receipt format?
No. Section 517 states the duty to provide a receipt but does not itself prescribe a form or a time limit. Applicable payment and recovery procedures must also be followed.
9. Official statutory references
- Income Tax Department - Section 289, Income-tax Act, 1961.
- Income Tax Department - Income-tax Act, 2025 as amended by Finance Act, 2026 (PDF), Section 517.
- Income Tax Department - Income-tax Act, 2025 (PDF).
Legal information current to 28 October 2026. This article explains the statutory rule and general administrative practice; for a particular payment or recovery, consult the applicable law, notifications and official records.