Chapter XIV - Tax Administration
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.
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This article is for general information. Refer to the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the Taxation and Other Laws (Amendment) Act, 2026 for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) The Assessing Officer, the Joint Commissioner or the Joint Commissioner (Appeals) or the Commissioner (Appeals) may, for the purposes of this Act, require any—
(a) person, including a banking company or any officer thereof, to furnish, within such time, requisite information or to furnish statements of account and affairs verified in such manner specified by such authority, giving such information in relation to such matters as, in the opinion of such authority, will be useful for, or relevant to, any enquiry or proceedings under this Act;
(b) firm to furnish him with a return of the names and addresses of the partners of the firm and their respective shares;
(c) Hindu undivided family to furnish him with a return of the names and addresses of the manager and the members of the family;
(d) person whom he has reason to believe to be a trustee, guardian or agent, to furnish him with a return of the names of the persons for or of whom he is trustee, guardian or agent, and of their addresses;
(e) assessee to furnish a statement of the names and addresses of all persons to whom he has paid in any tax year, rent, interest, commission, royalty, brokerage, or any annuity (not being any annuity taxable under the head “Salaries”), amounting to more than ₹ 10000, or such higher amount as may be prescribed, together with particulars of all such payments made;
(f) dealer, broker or agent or any person concerned in the management of a stock or commodity exchange to furnish a statement of the names and addresses of all persons to whom he or the exchange has paid any sum in connection with the transfer, whether by way of sale, exchange or otherwise, of assets, or on whose behalf or from whom he or the exchange has received any such sum, together with particulars of all such payments and receipts.
(2) The powers conferred under sub-section (1)(a) may also be exercised by the competent authority or the Assistant Director.
(3) The powers under sub-section (1)––
(a) shall not be exercised by any income-tax authority below the rank of Principal Director or Director or Principal Commissioner or Commissioner, other than the Joint Director or Assistant Director, without the prior approval of the Principal Director or Director or, as the case may be, the Principal Commissioner or Commissioner, in a case where no proceeding is pending;
(b) may be exercised by an income-tax authority notified under section 246(2)(a), for the purposes of an agreement referred to in section 159, even if no proceedings are pending before it or any other income-tax authority.
Introduction
An information request under Section 252 can be addressed to people and institutions beyond the assessee. The requested material must be useful or relevant to an enquiry or proceeding, and clause (1)(a) lets the authority specify the time and verification manner.
Key takeaways
Several recipients can be required to respond
The section covers any person, including banks and their officers, as well as specified information from firms, Hindu undivided families, trustees, assessees and market intermediaries.
The payment-detail clause has a threshold
An assessee may be required to provide recipient details for the listed payments exceeding ₹10,000 in a tax year, or a higher prescribed amount.
Approval depends on the situation
For the specified lower-ranked authorities, prior senior approval is required when no proceeding is pending; Section 252(3) sets the precise conditions and exceptions.
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.
Step-by-step flow for applying Section 252
- 1
Is the authority one that can use Section 252?
Section 252(1): the Assessing Officer, Joint Commissioner, Joint Commissioner (Appeals) or Commissioner (Appeals). For clause (1)(a) only, also the competent authority or the Assistant Director (Section 252(2)).
- No: Section 252 does not give that authority the power.
- Yes: Go to the next step.
- 2
Is any proceeding pending?
- Yes: Go to step 4.
- No: Go to the next step.
- 3
Is prior approval needed?
Where no proceeding is pending, an authority below the rank of Principal Director, Director, Principal Commissioner or Commissioner (other than a Joint Director or Assistant Director) needs prior approval of the Principal Director or Director, or the Principal Commissioner or Commissioner (Section 252(3)(a)). An authority notified under section 246(2)(a) may act for an agreement referred to in section 159 even if no proceeding is pending (Section 252(3)(b)).
- 4
What can be required?
(a) information or verified statements of account and affairs from any person, including a banking company or its officer; (b) from a firm, names, addresses and shares of partners; (c) from a HUF, names and addresses of the manager and members; (d) from a trustee, guardian or agent, names and addresses of the persons concerned; (e) from an assessee, names, addresses and particulars of persons paid rent, interest, commission, royalty, brokerage or annuity (other than annuity taxable under "Salaries") of more than ₹10,000, or a higher prescribed amount, in a tax year; (f) from a dealer, broker, agent or stock or commodity exchange, details of payments and receipts on transfer of assets.
- 5
Furnish within the time and in the manner specified
The authority fixes the time and the manner of verification. Respond with the information asked for and keep a copy of the reply.
Practical checklist
Do
- Identify the information sought, the legal authority issuing the notice and the due date.
- Check whether the issuing authority needs a prior approval for this request under the section.
Avoid
- Ignore an information call because it relates to another person’s tax proceeding.
Illustrative example
Worked example: statement of payees under clause (e)
Hypothetical facts (illustration only, not a real taxpayer): In a tax year, a proprietor pays rent of ₹20,000 a month to landlord A, commission of ₹8,000 to agent B and interest of ₹15,000 to lender C. No proceeding is pending against him. The Assessing Officer, who is below the rank of Commissioner, wants a statement of payees under Section 252(1)(e). All amounts are assumed, and it is assumed no higher amount has been prescribed.
Approval
Because no proceeding is pending and the Assessing Officer is below the rank of Commissioner, prior approval of the Principal Commissioner or Commissioner is needed (Section 252(3)(a)).
Landlord A
Rent = 12 × ₹20,000 = ₹2,40,000, which is more than ₹10,000, so A is included.
Agent B
Commission of ₹8,000 is not more than ₹10,000, so B is outside clause (e) on these facts.
Lender C
Interest of ₹15,000 is more than ₹10,000, so C is included.
Payments to report
₹2,40,000 + ₹15,000 = ₹2,55,000, with names, addresses and particulars of A and C.
Outcome
- The statement covers A and C; B need not be listed under clause (e), though information about B can still be sought under clause (a) if relevant to an enquiry.
- If a higher amount is prescribed, that amount replaces ₹10,000.
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.
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