Section 253: powers of survey

Where a survey can be conducted

An income-tax authority may enter any place where a business, profession, or charitable activity is carried on (whether or not it is the principal place), where that place is within the authority's assigned area, is occupied by a person over whom the authority has jurisdiction, or is authorised for this purpose. On entry, the authority may require any proprietor, trustee, employee or other person present to provide technical assistance to inspect books/documents/electronic information, facilities to check assets/stock, and any information relevant to a proceeding.

This also covers any other place where the person carrying on the business/profession/charitable activity states that books of account, cash, stock, or other valuables relating to that activity are kept.

Timing restrictions

Entry to a place of business/profession/charitable activity is allowed only during the hours it is open for business. For any other place covered under sub-section (2), entry is allowed only after sunrise and before sunset.

Survey for verifying TDS/TCS compliance

To verify tax deducted or collected at source under Chapter XIX-B, an income-tax authority may, after sunrise and before sunset, enter any office or place of business/charitable activity, or a place where relevant books or computer systems are kept, and require the deductor/collector or a relevant person to provide technical assistance for inspection and to furnish required information.

What the officer can do during a survey

An income-tax authority acting under this section may:

• Place identification marks on inspected books/documents and make or take copies or extracts, including from a computer system
• Record the statement of any person on oath, useful or relevant to a proceeding under the Act
• Impound (after recording reasons) any books, documents or computer system inspected, retaining it for up to fifteen days (excluding holidays), or longer with prior approval from the approving authority
• Make an inventory of any asset or stock checked or verified

Limits on TDS/TCS verification surveys

For a survey conducted specifically to verify TDS/TCS compliance under sub-section (4), the authority may only place identification marks/take copies and record statements on oath - not impound documents or make inventories.

No removal of assets or stock

An income-tax authority acting under this section must not, on any account, remove or cause to be removed any asset or stock from the place it has entered.

Verifying expenditure on functions and events

Having regard to the nature and scale of expenditure, an income-tax authority may, after a function, ceremony or event, require the person who incurred the expenditure (or anyone likely to know about it) to furnish information relevant to a proceeding, and may record statements on oath, which can be used as evidence in a proceeding under the Act.

Enforcement, approval and definitions

If a person refuses or evades providing facilities, information, or a statement as required under this section, the income-tax authority has the same enforcement powers available under Section 246(1).

Action under this section requires prior approval of the Principal Director General/Director General or Principal Chief Commissioner/Chief Commissioner.

"Income-tax authority" for this section means a Principal Commissioner/Commissioner, Principal Director/Director, Joint Commissioner/Joint Director, Assistant/Deputy Director, an Assessing Officer, or a Tax Recovery Officer, and (for certain specified purposes) includes an Inspector of Income-tax subordinate to the specified senior authorities.

Frequently asked questions