Power to call for information by prescribed income-tax authority
[Section-259 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 259(1) of Income Tax Act 2025
259(1) For the purposes of verification of information in the possession of the prescribed income-tax authority, such authority may issue a notice requiring any person to furnish any information as may be useful for, or relevant to, any inquiry or proceeding under this Act in such form and manner and within such time, as specified in such notice.
Section 259(2) of Income Tax Act 2025
259(2) The prescribed income-tax authority may process and utilise such information and document received by him as per the scheme notified under section 260.
FAQs on Section 259 of Income Tax Act 2025
What is the purpose of Section 259 of the Income Tax Act, 2025?
Section 259 empowers prescribed income-tax authorities to call for information for verifying details in their possession which may be relevant to any inquiry or proceeding under the Act.
Who can issue a notice under Section 259(1)?
Only the prescribed income-tax authority, as defined under the rules or notification issued under the Act, can issue a notice under Section 259(1).
What type of information can be called for under Section 259(1)?
Any information that is useful for, or relevant to, any inquiry or proceeding under the Act may be requested.
Is there a specific format or deadline to respond to a notice under Section 259(1)?
Yes, the notice will specify the form, manner, and time within which the information must be furnished.
Can a person other than the assessee be asked to furnish information under Section 259(1)?
Yes, the section allows the authority to require “any person” to furnish information, not limited to the assessee.
How is the information received under Section 259 processed?
As per Section 259(2), the prescribed income-tax authority may process and utilise such information and documents according to the scheme notified under Section 260.
What is the connection between Section 259 and Section 260?
Section 259(2) specifies that the information collected under Section 259(1) shall be processed and used as per the scheme prescribed under Section 260, which outlines the method and procedure for such utilisation.
Is Section 259 applicable from 1st April 2026?
Yes, as per the notification, Section 259 is effective from 1st April 2026.
Can the notice under Section 259 be issued electronically?
Yes, since the form and manner are specified in the notice, it may include electronic modes of communication as permitted under the prescribed scheme.
Is there a penalty for non-compliance with a notice issued under Section 259?
While Section 259 itself does not specify penalties, failure to comply may attract penal consequences under other relevant provisions of the Act.
Can the information collected under Section 259 be used for multiple inquiries or proceedings?
Yes, as long as the information is relevant and useful for any inquiry or proceeding under the Act, it can be used accordingly.
What is meant by “prescribed income-tax authority” under Section 259?
The term refers to the authority as may be notified or prescribed under the rules framed in accordance with the Act.
Is prior approval required for issuing a notice under Section 259?
Section 259 does not mention any requirement for prior approval; it is at the discretion of the prescribed income-tax authority.
Can an individual challenge a notice under Section 259?
Legal remedies such as appeal or writ petition may be available if the notice is believed to be ultra vires or issued without jurisdiction.
How is Section 259 different from other information-gathering provisions in the Act?
Section 259 specifically relates to verification of information already in the possession of the prescribed authority and ties the process to the scheme under Section 260.
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