Power to call for information
[Section-252 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 252(1) of Income Tax Act 2025
252(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 or brokerage, or any annuity, not being any annuity taxable under the head “Salaries” amounting to more than ten thousand rupees, or such higher amount as 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.
Section 252(2) of Income Tax Act 2025
252(2) The powers conferred under sub-section (1)(a) may also be exercised by the competent authority or the Assistant Director.
Section 252(3) of Income Tax Act 2025
252(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.
FAQs on Section 252 of Income Tax Act 2025
What is the primary purpose of Section 252 of the Income Tax Act, 2025?
The primary purpose of Section 252 is to empower income-tax authorities to call for specific information from individuals, entities, and intermediaries that may be useful or relevant to any inquiry or proceeding under the Act.
Who can exercise the power to call for information under Section 252(1)?
The Assessing Officer, Joint Commissioner, Joint Commissioner (Appeals), and Commissioner (Appeals) can exercise this power.
What types of persons or entities can be required to furnish information under this section?
This includes individuals, firms, Hindu undivided families, trustees, guardians, agents, assessees, banks, dealers, brokers, and stock or commodity exchanges.
Can banking companies be required to furnish information?
Yes, banking companies and their officers can be required to furnish verified statements of account and information useful or relevant to any proceedings.
What information can be required from a firm?
A firm can be required to furnish the names and addresses of its partners along with their respective shares.
What can be required from a Hindu undivided family?
They may be required to submit the names and addresses of the manager and members of the family.
What information can be demanded from trustees, guardians, or agents?
They can be asked to provide names and addresses of the persons for whom or of whom they act in such capacities.
What must an assessee furnish under this section?
An assessee may be required to provide a statement of names and addresses of all persons to whom payments exceeding ten thousand rupees or such prescribed higher amount were made during any tax year in the form of rent, interest, commission, royalty, brokerage, or annuity (excluding salaries), along with particulars of such payments.
What details can be sought from a dealer, broker, or stock/commodity exchange?
They may be asked to furnish names and addresses of persons involved in asset transfers or on whose behalf transactions were made, along with all payment and receipt particulars.
Can an Assistant Director exercise the power under Section 252?
Yes, under Section 252(2), the Assistant Director or competent authority may also exercise powers under Section 252(1)(a).
Are there restrictions on who can exercise powers under Section 252(1)?
Yes, except for the Joint Director or Assistant Director, no income-tax authority below the rank of Principal Director or Principal Commissioner can exercise such power where no proceeding is pending, unless they have prior approval from the higher authority.
Can these powers be exercised even when no proceedings are pending?
Yes, powers can still be exercised in two cases: (i) with prior approval of the designated superior authority, and (ii) by an income-tax authority notified under section 246(2)(a) for the purposes of an agreement under section 159.
What is the significance of agreements referred to in section 159 in this context?
Such agreements likely pertain to international information exchange or cooperation, allowing authorities to call for information even when no domestic proceedings are underway.
Does this section allow for verification requirements?
Yes, authorities may specify that information or statements be verified in a particular manner.
Is there a time frame for furnishing the information?
Yes, the authority can prescribe a specific time frame within which the information must be furnished.
Is Section 252 applicable from a specific date?
Yes, Section 252 is effective from 1st April, 2026 as per the Income Tax Act, 2025.
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