Powers of survey
[Section-253 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 253(1) of Income Tax Act 2025
253(1) Irrespective of anything contained in any other provision of this Act, an income-tax authority may enter any place at which a business or profession, or activity for charitable purpose is carried on, whether such place be the principal place or not of such business or profession or of such activity for charitable purpose, where such place—
- (a) is within the limits of the area assigned to such authority; or
- (b) is occupied by any person in respect of whom such authority exercises jurisdiction; or
- (c) in respect of which such authority is authorised for the purposes of this section by income-tax authority, who is assigned the area within which such place is situated or who exercises jurisdiction in respect of any person occupying such place,
- and, upon entry into such a place, may require any proprietor, trustee, employee or any other person who may at that time and place be attending in any manner to, or helping in, the carrying on of such business or profession or such activity for charitable purpose—
- (i) to provide the necessary technical and other assistance (including access code) to enable the inspection of such books of account or other documents, or computer system, or any other material connected with such system including virtual digital space, as may be required and which may be available at such place;
- (ii) to provide the necessary facility to check or verify the asset, stock, which may be found therein; and
- (iii) to furnish such information as such authority may require as to any matter which may be useful for, or relevant to, any proceeding under this Act.
Section 253(2) of Income Tax Act 2025
253(2) For the purposes of this section, a place where a business or profession, or activity for charitable purpose is carried on shall also include any other place, whether any business or profession or activity for charitable purpose is carried on therein or not, in which the person carrying on such business or profession or activity for charitable purpose states that any of his books of account or other documents or any part of his cash or stock or other valuable article or thing or computer system relating to such business or profession or activity for charitable purpose, are or is kept.
Section 253(3) of Income Tax Act 2025
253(3) An income-tax authority may enter any place of business or profession or activity for charitable purpose referred to in sub-section (1), only during the hours at which such place is open for the conduct of business or profession or activity for charitable purpose and, in the case of any other place, only after sunrise and before sunset.
Section 253(4) of Income Tax Act 2025
253(4) An income-tax authority acting under this section may, for the purposes of verifying that tax has been deducted or collected at source as per the provisions of Chapter XIX-B of this Act, after sunrise and before sunset, enter––
- (a) any office, or any other place where business or profession or activity for charitable purpose is carried on, within the limits of the area assigned to such authority; or
- (b) any place in respect of which such authority is authorised for the purposes of this section by an income-tax authority who is assigned the area within which such place is situated or where books of account or documents are kept,
- and on entry to such office or place, the income-tax authority may require the deductor or the collector or any other person who may at that time and place be attending in any manner to such work—
- (i) to provide the necessary facility to inspect such books of account or other documents, and access to electronic media or computer system, or virtual digital space, as may be required; and
- (ii) to furnish such information as may be required in relation to such matter.
Section 253(5) of Income Tax Act 2025
253(5) An income-tax authority acting under this section may—
- 253(5)(a) place marks of identification on the books of account or other documents inspected by such authority and make or cause to be made extracts or copies therefrom or from electronic media or computer system;
- 253(5)(b) record the statement of any person on oath which may be useful for, or relevant to, any proceeding under this Act;
- 253(5)(c) impound and retain in custody any books of account or other documents inspected by it, after recording reasons for doing so, for a period––
- (i) of fifteen days (exclusive of holidays); or
- (ii) exceeding fifteen days (exclusive of holidays) with the prior approval of the approving authority;
- 253(5)(d) make an inventory of any asset or stock checked or verified by such authority.
Section 253(6) of Income Tax Act 2025
253(6) The income-tax authority acting under sub-section (4) shall only undertake the actions referred under sub-sections (5)(a) and (5)(b).
Section 253(7) of Income Tax Act 2025
253(7) An income-tax authority acting under this section shall, on no account, remove or cause to be removed from the place wherein it has entered, any asset or stock.
Section 253(8) of Income Tax Act 2025
253(8) The income-tax authority having regard to the nature and scale of expenditure incurred, for the purposes of verifying the expenditure made by the person in connection with any function, ceremony or event, if it is of the opinion that it is necessary and expedient to do so, after such function, ceremony or event, may—
- (a) require the person by whom such expenditure has been incurred or any other person who is likely to possess the information regarding such expenditure, to furnish such information which may be useful for, or relevant to, any proceeding under this Act;
- (b) record the statements of the person or any other person on oath in this behalf; and
- (c) any statement so recorded may thereafter be used as evidence in any proceeding under this Act.
Section 253(9) of Income Tax Act 2025
253(9) If a person is required to provide facility to the income-tax authority to inspect books of account or other documents in any form or to check or verify any cash, stock or other valuable article or thing or to furnish any information or to have his statement recorded, either refuses or evades to do so, the income-tax authority shall have all the powers under section 246(1) for enforcing compliance with the requirement.
Section 253(10) of Income Tax Act 2025
253(10) The action under this section shall be taken by an income-tax authority with the prior approval of the Principal Director General or the Director General or the Principal Chief Commissioner or the Chief Commissioner.
Section 253(11) of Income Tax Act 2025
253(11) In this section, “income-tax authority” means—
- (a) a Principal Commissioner or Commissioner, a Principal Director or Director, a Joint Commissioner or Joint Director, an Assistant Director or a Deputy Director or an Assessing Officer, or a Tax Recovery Officer; and
- b) includes an Inspector of Income-tax, for the purposes of sub-sections, (1)(i), (5)(a) and (8),
who is subordinate to the Principal Director General or the Director General or the Principal Chief Commissioner or the Chief Commissioner, as specified by the Board.
FAQs on Section 253(11) of Income Tax Act 2025
Who is empowered to conduct a survey under Section 253?
Income-tax authorities including Principal Commissioner, Commissioner, Director, Joint Commissioner, Assessing Officer, Tax Recovery Officer, and in certain sub-sections, even Inspectors of Income-tax, can conduct a survey.
What places can be entered by the income-tax authority for survey?
They may enter any place where a business, profession, or charitable activity is carried on, including additional premises where books, stock, cash, computer systems, or related materials are kept.
When can a survey be conducted at a business or professional premises?
Only during the hours at which such place is open for conducting business, profession, or charitable activity.
When can a survey be conducted at other places not being the business premises?
Only after sunrise and before sunset.
Can the authority enter a place just to verify TDS/TCS compliance?
Yes. Under Section 253(4), they may enter to verify compliance with Chapter XIX-B provisions on deduction or collection of tax at source.
What actions can be taken during a TDS/TCS verification survey?
They may inspect books, documents, electronic media, or virtual digital space, and require relevant information.
What powers does the income-tax authority have during a survey?
They may mark and extract copies of documents, record statements on oath, impound documents (with recorded reasons), and make inventory of stock or assets.
Can the income-tax authority record statements during the survey?
Yes, they can record statements on oath if useful or relevant to any proceeding under the Act.
Is there any restriction on removal of assets during survey?
Yes. Section 253(7) explicitly prohibits removal of any asset or stock from the premises.
Can expenditure at a function or event be surveyed?
Yes, after the event, the authority may verify the nature and scale of expenditure by requiring information and recording statements.
Can a survey be conducted without approval?
No. Prior approval from the Principal Director General, Director General, Principal Chief Commissioner, or Chief Commissioner is required.
What happens if a person refuses to cooperate during a survey?
The income-tax authority is empowered under Section 246(1) to enforce compliance, including compelling production of books or information.
Can a survey be conducted at a place outside the assigned jurisdiction?
Yes, but only if the authority is specifically authorized by another competent income-tax authority having jurisdiction over that area.
What kind of technical assistance can be required during a survey?
Access codes, help in inspecting computer systems, documents, and virtual digital spaces may be required from persons present.
Are Inspectors of Income-tax authorized to conduct surveys?
They may act for the limited purposes specified in Sections 253(1)(i), 253(5)(a), and 253(8) only, under supervision of higher authorities.
Can statements recorded during survey be used in proceedings?
Yes. Statements recorded on oath may be used as evidence in proceedings under the Act.
How long can documents be retained after impounding during a survey?
Up to 15 days (excluding holidays) without approval, or for longer with prior approval of the approving authority.
Can a survey be done at a place that is not a place of business?
Yes, if the person states that books, stock, or relevant materials are kept there.
What is meant by “virtual digital space” in the context of survey?
It refers to any electronically maintained space such as cloud storage or digital platforms used for storing or accessing business-related data.
Can income-tax authorities check stock during survey?
Yes, they may check or verify stock and make inventory of the same.
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