Tax Ready Reckoner

The Income Tax Act, 1961 contains provisions related to search, seizure, survey, and special procedures for assessment in search cases. These provisions are crucial for tax authorities to combat tax evasion and ensure compliance. Below is a detailed explanation of the relevant sections: 1. Section 132: Search & Seizure Objective: To authorize tax authorities to conduct searches and

Section 132 of the Income Tax Act empowers tax authorities to conduct searches and seize undisclosed income, assets, or documents to combat tax evasion. This is one of the most stringent provisions under the Act, allowing the Income Tax Department to take direct action against tax evaders. 1. When Can a Search Be Conducted? A search can

Section 132A empowers the Income Tax Department to requisition (take custody of) books of account, documents, money, bullion, jewellery, or other valuable assets that are already in the possession of other government authorities (such as police, ED, Customs, etc.) if they are suspected to represent undisclosed income. 1. When Can Requisition Be Made? The Principal Director General, Director General, Chief Commissioner, or Director

Section 132B governs how assets seized under Section 132 or requisitioned under Section 132A are to be utilized, retained, or released by the Income Tax Department. This provision ensures proper handling of confiscated assets while protecting taxpayer rights. 1. Adjustment Against Tax Liability Seized/requisitioned assets can be adjusted against existing or pending tax duesof the taxpayer. The Assessing Officer (AO) can use

The Income Tax Act, 1961, provides a special procedure for assessments in search cases to ensure thorough scrutiny of undisclosed income. Below is a detailed breakdown of the process under Sections 153A, 153B, 153C, and 153D: 1. Section 153A: Assessment in Case of Search or Requisition Applicability Triggered when a search is conducted under Section 132or requisition is made under

A survey under Section 133A of the Income Tax Act, 1961 is a legal procedure allowing income-tax authorities to enter business premises, inspect books and documents, verify cash and stock, and collect information for tax purposes. It is less invasive than a search or raid and is intended primarily for information gathering and verification, not