Section 295
Section 295: undisclosed income of any other person
Section 295 covers the situation where, during a search of one person (the "specified person"), the Assessing Officer becomes satisfied that some of the undisclosed income, money, assets or documents actually belongs to or relates to someone else (the "other person"). It routes the case, and the seized material, to that other person's own Assessing Officer, and fixes how the block period applies to them.
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.
Handing the case to the other person's Assessing Officer
Where the Assessing Officer is satisfied that undisclosed income belongs to, pertains to, or relates to an "other person" (not the "specified person" who was actually searched under section 247 or requisitioned under section 248), then:
- any money, bullion, jewellery, virtual digital asset or other valuable article or thing, or books of account or other documents seized or requisitioned, or any other material/information relating to the undisclosed income, must be handed over to the Assessing Officer having jurisdiction over the other person; and
- that Assessing Officer then proceeds against the other person under section 294, and the block-assessment provisions of this Part apply accordingly.
How the block period is fixed for the other person
Where there is one specified person relevant to the other person, the block period for the other person is the same as for that specified person.
Where there is more than one relevant specified person, the block period for the other person is the same as for whichever specified person's block period ends on the later date.
Where the other person's undisclosed income pertains only to the period from the tax year immediately preceding the year of search/requisition (the "specified year") up to the date of initiation of search or making of requisition, the block period for that other person comprises only the specified year plus the period from 1 April of the search year to the date the last search authorisation is executed.
Where the other person's undisclosed income pertains to a single tax year out of the five tax years preceding the specified year, the block period for that other person comprises only that single tax year.
Reference date for abatement
For the purposes of abatement under section 292(2) and (3) in the case of the other person, the reference to the date of search/requisition is read instead as the date on which the seized money, assets, books, documents or other material/information relating to the undisclosed income were received by the Assessing Officer having jurisdiction over the other person.
Frequently asked questions
What happens if a search of one person turns up income belonging to someone else?
Under Section 295(1), the seized assets, books, documents or information relating to that other person's undisclosed income are handed over to the Assessing Officer with jurisdiction over that other person, who then proceeds against them under section 294 using the block-assessment procedure.
How is the block period worked out for this "other person"?
It generally matches the block period of the specified person who was actually searched (or the later-ending block period, if more than one specified person is relevant) - though narrower block periods apply in the specific situations described in Section 295(2)(c) and (d).
For abatement purposes, what date counts as the "search date" for the other person?
Section 295(3) substitutes the date the seized assets, documents or information were actually received by the other person's Assessing Officer, in place of the original search or requisition date.
Related sections
Want this applied to your actual filing, not just explained?
Get help if undisclosed income from someone else's search has been linked to youLast updated 9 September 2026