Authorisation and assessment in case of search or requisition
[As per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 525(1) of Income Tax Act 2025
525(1) Irrespective of anything contained in this Act,—
- 525(1)(a) it shall not be necessary to issue an authorisation under section 247 or make a requisition under section 248 separately in the name of each person;
- 525(1)(b) where an authorisation under section 247 has been issued or requisition under section 248 has been made mentioning therein the name of more than one person, the mention of such names of more than one person on such authorisation or requisition shall not be considered to construe that it was issued in the name of an association of persons or body of individuals consisting of such persons.
Section 525(2) of Income Tax Act 2025
525(2) Irrespective of an authorisation issued under section 247 or a requisition made under section 248 mentioning therein the name of more than one person, the assessment or reassessment shall be made separately in the name of each of the persons mentioned in such authorisation or requisition.
FAQs on Section 525 of the Income Tax Act, 2025
FAQs regarding Authorisation and Assessment in Case of Search or Requisition under the Income Tax Act, 2025:
- What is Section 525 of the Income Tax Act, 2025?
Section 525 provides guidelines on authorisation and assessment in case of search or requisition, ensuring that assessments are made separately for each individual even if multiple names are included in the authorisation or requisition. - When does Section 525 come into effect?
This section is effective from April 1, 2026. - Is a separate authorisation required for each person under search or requisition?
No, as per Section 525(1)(a), a single authorisation under Section 247 or requisition under Section 248 can include multiple persons without requiring separate authorisations. - Does mentioning multiple names in the authorisation mean they are treated as an association of persons (AOP) or body of individuals (BOI)?
No, as per Section 525(1)(b), just because multiple names appear in the authorisation or requisition does not mean they form an AOP or BOI for tax purposes. - How will assessments be conducted when multiple names are mentioned in the authorisation or requisition?
Each person will be assessed separately, as specified under Section 525(2). - Will all persons named in the authorisation be liable jointly or separately?
They will be assessed separately, meaning each individual’s tax liability will be determined independently. - Does this section impact how tax is collected from individuals in a search operation?
No, it only clarifies that mentioning multiple names does not imply collective taxation as an AOP or BOI.
Section 525 of the Income Tax Act, 2025, effective from April 1, 2026, clarifies that a single authorisation under Section 247 or requisition under Section 248 can include multiple persons without requiring separate authorisations.
However, mentioning multiple names in such documents does not imply they constitute an Association of Persons (AOP) or Body of Individuals (BOI). Furthermore, as per Section 525(2), even if multiple names are included in the authorisation or requisition, each person will be assessed or reassessed separately, ensuring individual tax liability rather than joint assessment.
