Disclosure of information relating to assessees
[Section-258 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 258(1) of Income Tax Act 2025
258(1) The Board or any other income-tax authority specified by it by an order in this behalf, may furnish or cause to be furnished to—
- (a) any officer, authority or body performing any functions under any law relating to the imposition of any tax, duty or cess, or dealings in foreign exchange as defined in section 2(n) of the Foreign Exchange Management Act, 1999; or
- (b) such officer, authority or body performing functions under any other law, if in the opinion of the Central Government it is necessary so to do in the public interest, as it may specify by notification in this behalf,
any such information received or obtained by any income-tax authority in the performance of its functions under this Act, as may, in the opinion of the Board or other income-tax authority, be necessary for the purpose of enabling the officer, authority or body, to perform his or its functions under that law.
Section 258(2) of Income Tax Act 2025
258(2) The Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner may furnish or cause to be furnished to a person, the information relating to any assessee received or obtained by any income-tax authority in the performance of his functions under this Act,––
- (a) on an application made by such person to the aforesaid authorities in the prescribed form and on being satisfied that it is in the public interest so to do; and
- (b) the decision of the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner in this behalf, shall be final and shall not be called in question in any court of law.
Section 258(3) of Income Tax Act 2025
258(3) Irrespective of anything contained in sub-section (1) or (2) or any other law in force, the Central Government may, having regard to the practices and usages, customary or any other relevant factors, by notification, direct that no information or document shall be furnished or produced by a public servant in respect of such matters relating to such class of assessees except to such authorities as specified in that notification.
FAQs on Section 258 of Income Tax Act 2025
What is the main purpose of Section 258 of the Income Tax Act, 2025?
Section 258 empowers specified income-tax authorities to furnish information relating to assessees to other authorities or persons under certain conditions, in the interest of public policy, national interest, or lawful functions under other laws.
Who is authorized to disclose information under Section 258(1)?
The Board or any income-tax authority specified by it through an order can furnish or cause to be furnished information to designated officers or authorities under tax, duty, cess, or foreign exchange laws, or to other authorities notified by the Central Government in public interest.
To whom can information be disclosed under Section 258(1)(a)?
Information may be disclosed to any officer, authority, or body performing functions under laws related to the imposition of tax, duty, cess, or dealings in foreign exchange as defined in section 2(n) of the Foreign Exchange Management Act, 1999.
Under what conditions can information be shared with authorities under other laws as per Section 258(1)(b)?
If the Central Government considers it necessary in public interest, it may notify such officers, authorities, or bodies under other laws to whom the information may be furnished.
Can information be shared with private individuals?
Yes, under Section 258(2), the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner, or Commissioner may furnish such information to a person if an application is made in the prescribed form and they are satisfied that it is in the public interest.
Is there a prescribed procedure for individuals to request information?
Yes, the person must make an application in the prescribed form to the appropriate authority. The authority must be satisfied that furnishing the information is in public interest.
Can the decision of the income-tax authority to furnish or withhold information be challenged?
No, as per Section 258(2)(b), the decision of the specified authority is final and cannot be called into question in any court of law.
Can the Central Government impose restrictions on disclosure of information?
Yes, Section 258(3) allows the Central Government to notify that no information or document shall be furnished by a public servant in respect of certain matters relating to a specified class of assessees, except to specified authorities.
Is the notification issued under Section 258(3) applicable even if sub-sections (1) or (2) would otherwise permit disclosure?
Yes, the restrictions under Section 258(3) override the provisions of sub-sections (1) and (2) and any other law in force.
What factors may the Central Government consider when restricting disclosure under Section 258(3)?
The Central Government may consider practices, usages, customs, or any other relevant factors when issuing such notifications.
Is there any safeguard against misuse of the authority to disclose information?
Yes, disclosures are limited to public interest and specific legal functions, and final decisions rest with high-ranking income-tax authorities whose judgment is not subject to judicial review.
Can any income-tax officer disclose such information?
No, only those authorities specifically empowered by the Board under Section 258(1), or the designated higher authorities under Section 258(2), may disclose such information.
Does Section 258 override other laws?
Yes, especially under sub-section (3), where it specifically states that its provisions prevail over any other law for the time being in force.
Is the identity of the assessee protected under this section?
The section allows disclosure only when necessary and in public interest, implying protection of information unless disclosure is justified under the provisions.
Can information be disclosed suo motu under Section 258?
Yes, authorities may furnish or cause to be furnished such information when they deem it necessary, subject to the conditions laid down in the section.
Is consent of the assessee required for disclosure?
No, consent is not required when the information is shared as per the provisions of Section 258 in public interest or for lawful official functions.
