Section 252
Section 252: power to call for information
Section 252 gives certain income-tax authorities a general power to call for information relevant to any enquiry or proceeding under the Act - not just from the taxpayer under investigation, but from banks, firms, HUFs, trustees, and third parties who have paid or received money on the taxpayer's behalf.
This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.
Who can be asked, and for what
The Assessing Officer, Joint Commissioner, Joint Commissioner (Appeals) or Commissioner (Appeals) may require:
- Any person, including a banking company or its officer, to furnish requisite information or verified statements of account within a specified time, on matters useful or relevant to an enquiry or proceeding
- A firm to furnish a return of the names and addresses of its partners and their respective shares
- A Hindu undivided family to furnish a return of the names and addresses of the manager and family members
- A person believed to be a trustee, guardian or agent to furnish the names and addresses of those for or of whom they act
- An assessee to furnish a statement of names and addresses of everyone to whom, in a tax year, they paid rent, interest, commission, royalty, brokerage, or any annuity (excluding salary-taxable annuity) amounting to more than ₹10,000 (or such higher amount as may be prescribed), with particulars of the payments
- A dealer, broker, agent, or person involved in managing a stock or commodity exchange to furnish names, addresses and particulars of payments/receipts connected with transfers of assets through that exchange
Who else can exercise this power
The power under sub-section (1)(a) (requiring information/statements of account) may also be exercised by the competent authority or the Assistant Director.
Approval requirements
An income-tax authority below the rank of Principal Director/Director or Principal Commissioner/Commissioner (other than a Joint Director or Assistant Director) needs prior approval from the Principal Director/Director or Principal Commissioner/Commissioner before exercising this power in a case where no proceeding is pending.
An income-tax authority notified under Section 246(2)(a) may exercise this power for the purposes of an agreement referred to in Section 159, even where no proceedings are pending before it or any other authority.
Frequently asked questions
Above what payment amount must an assessee report details of the recipient?
Section 252(1)(e) requires an assessee to furnish names and addresses of persons to whom they paid rent, interest, commission, royalty, brokerage, or an annuity (other than salary-taxable annuity) amounting to more than ₹10,000 in a tax year, or such higher amount as may be prescribed, along with particulars of the payments.
Can banks be asked for information under Section 252?
Yes - a banking company or any officer of it can be required to furnish requisite information or verified statements of account under Section 252(1)(a).
Does exercising this power always need prior approval?
Only in specific cases - an income-tax authority below the rank of Principal Director/Director or Principal Commissioner/Commissioner (other than a Joint Director or Assistant Director) needs prior approval when no proceeding is pending. Higher-ranked authorities and cases with pending proceedings are not subject to this specific approval requirement under Section 252.
Related sections
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