Chapter XIV - Tax Administration
Section 260
Section 260: faceless collection of information
Section 260 is the enabling provision for making the tax department's information-gathering powers - under Sections 252, 254, 255, 256 and 259 - "faceless," meaning conducted with minimal or no direct interface between the tax officer and the taxpayer or other person.
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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 Central Government may make a scheme, by notification, for the purposes of calling for information under section 252, collecting certain information under section 254, or calling for information by prescribed income-tax authority under section 259, or exercise of power to inspect register of companies under section 255, or exercise of power of Assessing Officer under section 256 so as to impart greater efficiency, transparency and accountability by—
(a) eliminating the interface between the income-tax authority and the assessee or any other person to the extent technologically feasible;
(b) optimising utilisation of the resources through economies of scale and functional specialisation;
(c) introducing a team-based exercise of powers, including to call for, or collect, or process, or utilise, the information, with dynamic jurisdiction.
(2) The Central Government may, for the purpose of giving effect to this scheme made under sub-section (1), by notification, direct that any of the provisions of this Act shall not apply or shall apply with such exceptions, modifications and adaptations as specified in the notification.
(3) Every notification issued under sub-sections (1) and (2) shall, as soon as may be after the notification is issued, be laid before each House of Parliament.
Introduction
The Central Government may notify a scheme for exercising five named information-gathering powers. Section 260 states the goals and allows notification-based adaptations of the Act to implement the scheme; the operational process depends on the notification.
Key takeaways
Five powers are in scope
A notified scheme may cover Sections 252, 254, 255, 256 and 259: information requests, collection, company-register inspection and enquiry powers.
The scheme has stated goals
It seeks less direct interface where technologically feasible, efficient resource use and team-based information work with dynamic jurisdiction.
Notifications govern the details
The Government may specify statutory exceptions or adaptations for the scheme, and the notifications must be laid before Parliament.
Purpose of the scheme
The Central Government may, by notification, make a scheme covering the powers to call for information (Section 252), collect certain information (Section 254), call for information by prescribed authority (Section 259), inspect registers of companies (Section 255), or exercise the powers of certain authorities (Section 256), so as to impart greater efficiency, transparency and accountability by:
- Eliminating the interface between the income-tax authority and the assessee or other person, to the extent technologically feasible
- Optimising use of resources through economies of scale and functional specialisation
- Introducing team-based exercise of powers - including calling for, collecting, processing or utilising information - with dynamic jurisdiction
Modifying the Act to give effect to the scheme
To give effect to a scheme made under sub-section (1), the Central Government may, by notification, direct that any provisions of the Act shall not apply, or shall apply with specified exceptions, modifications and adaptations.
Parliamentary oversight
Every notification issued under sub-sections (1) and (2) must be laid before each House of Parliament as soon as possible after it is issued.
Step-by-step flow for applying Section 260
- 1
Which power is involved?
Section 260(1) covers calling for information under Section 252, collecting information under Section 254, calling for information by the prescribed authority under Section 259, inspecting company registers under Section 255, and Assessing Officer powers under Section 256.
- None of these: Section 260 does not apply.
- One of these: Go to the next step.
- 2
Has the Central Government notified a scheme for it?
- No: The power is exercised under the ordinary provisions of the Act.
- Yes: Go to the next step.
- 3
Understand the scheme's aims
Greater efficiency, transparency and accountability by removing the interface between the authority and the person to the extent technologically feasible, optimising resources through economies of scale and functional specialisation, and team-based exercise of powers with dynamic jurisdiction (Section 260(1)(a) to (c)).
- 4
Check for modified provisions
Under Section 260(2), a notification may direct that any provision of the Act shall not apply, or shall apply with exceptions, modifications and adaptations. Read the notification itself before relying on the ordinary procedure.
- 5
Parliamentary laying
Every notification under Sections 260(1) and 260(2) is laid before each House of Parliament as soon as may be after it is issued (Section 260(3)).
Practical checklist
Do
- Check the scheme notification for the relevant information-gathering power and the prescribed digital process.
- Preserve electronic notices, submissions and acknowledgments.
Avoid
- Assume section 260 itself specifies every operational step without the notified scheme.
Illustrative example
Worked example: a notice under a faceless scheme
Hypothetical facts (illustration only, not a real taxpayer): A company receives an electronic notice under Section 252 calling for information. The notice states that it is issued under a scheme notified under Section 260 and does not name a particular officer. Facts are assumed.
Power covered
Calling for information under Section 252 is one of the powers a Section 260 scheme may cover.
Scheme check
The company reads the notified scheme to find how replies are to be filed and how the information will be processed.
Modifications
It checks whether any notification under Section 260(2) changes how Section 252 applies under the scheme.
Reply
It replies within the time and in the manner the notice and scheme require, without seeking a personal meeting unless the scheme provides for one.
Outcome
- The notice is valid under the scheme; the procedure is the one the notification lays down.
- The details of each scheme are in the notification, not in Section 260.
Frequently asked questions
What powers can be made 'faceless' under Section 260?
The scheme under Section 260 can cover the power to call for information (Section 252), collect certain information (Section 254), inspect company registers (Section 255), the enquiry powers of certain authorities (Section 256), and calling for information by a prescribed authority (Section 259).
Does a faceless scheme notification need parliamentary approval?
It must be laid before each House of Parliament as soon as possible after issue, per Section 260(3).
Need help applying this provision to your situation?
Talk to our tax team about this sectionLast updated 9 October 2026