Survey, Search and Seizure: formula sheet

Key formulas

Entry timing (business places)

Business, profession or charitable place: only during hours it is open

Section 253(3). Any other place: only after sunrise and before sunset.

Prior approval

Prior approval of Pr. DG / DG / Pr. Chief Commissioner / Chief Commissioner

Section 253(10). Action without it is open to challenge.

Impounding period

Up to 15 days (exclusive of holidays); longer only with prior approval of the approving authority

Reasons must be recorded before impounding. Section 253(5)(c).

Ban on removal

No removal of any asset or stock from the place

Section 253(7). Officer may only make an inventory.

TDS/TCS verification survey

Entry after sunrise and before sunset; only identification marks/copies and statements on oath

Section 253(4) and (6). No impounding or inventory in this survey.

Enforcement of compliance

Refusal or evasion: officer has all powers under section 246(1)

Section 253(9).

Trigger under section 247(1)(a)

Summons/notice issued + books, documents or electronic information not produced (or would not be produced)

The summons or notice is under section 246(1) or 268(1) of the 2025 Act, or the corresponding provisions of the 1961 Act.

Trigger under section 247(1)(b)

Person holds asset or information about asset + asset represents undisclosed income or property

Covers income or property not disclosed, or that would not be disclosed, under the 1961 Act, the Black Money Act 2015 or this Act.

Chain of authorisation

Approving authority → JD/JC/AD/AC/ITO → (if JD or JC) → AD/AC/ITO

The officer finally holding the authorisation is the authorised officer.

Powers in clauses (i) to (vii)

Enter and search; require assistance and access code; break open locks or override access code; search persons; mark and copy; inventory; seize

Stock-in-trade of the business can be inventoried but not seized.

Prohibitory order, section 247(4)(b)

Order not to remove or deal with the item; maximum 60 days from the date of the order

It is not deemed seizure. Under (4)(a), for bulky or dangerous valuables (other than stock-in-trade), the order is deemed seizure.

Provisional attachment, section 247(8)

During the search or seizure, or within 60 days from the last authorisation executed; valid 6 months from end of the month of the order

Needs written reasons and prior approval of the Principal DG/DG/Principal Director/Director.

Valuation reference, section 247(9)

Reference during search/seizure or within 60 days of the last authorisation; report due within 60 days of receipt

Estimates fair market value of the property.

Block period, section 301(a)

Six tax years before the tax year of search + 1 April of the search year to the date the last authorisation is executed

For a search, the last authorisation is executed on conclusion of search as recorded in the last panchnama.

Trigger 1: non-production

Information + reason to believe that a person failed or would fail to produce books, documents or electronic information called for by summons or notice → search can be authorised

Summons or notice under section 131(1) or 142(1) of the 1961 Act, or section 246(1) or 268(1) of the 2025 Act. Covers a notice already issued or one that might be issued.

Trigger 2: undisclosed income or property

Information + reason to believe that a person holds an asset (or information about it) representing income or property not or would not be disclosed → search can be authorised

Disclosure is tested under the 1961 Act, the Black Money Act, 2015 or the 2025 Act. The asset may represent income or property wholly or partly.

Chain of authorisation

Approving authority → Joint Director / Joint Commissioner / Assistant Director / Assistant Commissioner / ITO → (if JD or JC) further to Assistant Director / Assistant Commissioner / ITO

The officer finally authorised is the authorised officer. Section 247(1).

Powers on authorisation (summary)

Enter and search; seek technical help and access codes; break open locks or override access codes; search persons; mark, copy and extract; inventory; seize (not stock-in-trade)

Section 247(1)(i) to (vii). Stock-in-trade may be noted in an inventory but not seized.

Cross-jurisdiction authorisation

Authority with jurisdiction over the premises but not the person may act if delay in getting authorisation from the authority having jurisdiction over the person may prejudice revenue

Section 247(2). The Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner must have reason to believe this.

Additional premises

Principal Chief Commissioner / Chief Commissioner / Principal Commissioner / Commissioner may authorise action in premises not named in the warrant if there is reason to suspect books, documents or assets are kept there

Section 247(3), irrespective of section 241.

Interest on excess seized money

Interest = 0.5% × number of months (part of a month counts as a month) × [(A – B) + (C – D)]

A = money seized or requisitioned; B = money released under section 250(2); C = proceeds of assets sold for liabilities; D = total liabilities under section 250(1). Simple interest.

Interest period

From the day after 120 days from the last authorisation executed, to the date of completion of assessment/reassessment/recomputation

Section 250(9). No interest runs inside the first 120 days.

Release application

Within 30 days from the end of the month in which the asset was seized

Needs source explained, existing liability recovered first, and prior approval of the Commissioner-level authority. Release within 120 days from the last authorisation.

Handover to jurisdictional AO

Within 180 days from the date of search or requisition

Applies where the authorised officer has no jurisdiction over the person searched (section 251(1)).

Retention limit

Up to one month from the end of the quarter of the assessment order; longer with written reasons and approval

Outer cap: approving authority cannot allow retention beyond 30 days from completion of all proceedings (section 251(3) and (4)).

Order of application

Money first, then other assets (deemed distraint), then surplus returned forthwith

Section 250(4), (5), (7). Recovery by this route does not bar other recovery modes (section 250(6)).

Scope of special assessment

Search initiated / requisition made → AO assesses total undisclosed income of the block period

Section 292(1). Applies irrespective of other provisions of the Act.

Rate of tax

Tax = 60% × total undisclosed income of block period + surcharge, if any

Section 192(1) and (2). Surcharge only if levied by a Central Act. No slab rates, no basic exemption.

Abatement of pending proceedings

Pending proceedings for tax years in block period abate on date of search / requisition

Section 292(2)(a). Later notices up to the order under Section 294(1)(c) abate on date of notice, except for the tax year of the last authorisation or requisition: Section 292(2)(b).

Regular income of search year

Income other than undisclosed income of the year of last authorisation / requisition is assessed separately

Section 292(6).

Revival on annulment

Annulment of block assessment → abated proceedings revive from date order received by PCIT/CIT

Section 292(5). Revival ceases if the annulment order is set aside.

Earlier pending block assessment

Complete pending assessment first; later one gets at least 3 months from end of month of completion

Section 292(4).

Quick revision

• Search under section 247 needs reason to believe based on information in the competent authority's possession.
• Trigger one: failure or likely failure to produce books, documents or electronic information after a summons or notice.
• Trigger two: possession of an asset or information representing undisclosed income or property.
• The approving authority may authorise a Joint Director, Joint Commissioner, Assistant Director, Assistant Commissioner or Income-tax Officer. A Joint Director or Joint Commissioner so authorised may in turn authorise an Assistant Director, Assistant Commissioner or Income-tax Officer. The officer so authorised, in all cases, is the 'authorised officer' who exercises the powers.
• Seizure covers books, documents, computer systems and assets, but not stock-in-trade of the business.
• Stock-in-trade is noted and inventoried, not seized.
• Officers can override access codes and break open locks where keys or access are unavailable.
• A restraint order where seizure is not practicable cannot exceed 60 days and is not treated as seizure.
• Under section 247(4)(a), where it is not possible or practicable to take physical possession of a valuable article or thing (other than stock-in-trade) and remove it to a safe place because of its volume, weight, other physical characteristics or dangerous nature, the authorised officer may order the owner or person in control not to remove, part with or deal with it without permission. That order is deemed seizure.
• Provisional attachment needs reasons recorded in writing and prior approval of the Principal Director General, Director General, Principal Director or Director under section 247(8)(a). It may be made during the search or within 60 days from the date the last authorisation was executed, and is valid for six months from the end of the month of the order.
• Valuation reference can be made during the search or within 60 days from the date the last authorisation was executed; the report is due within 60 days of receipt of the reference.
• Section 247(7) says it may be presumed, for a person found in possession or control, that: (1) the items belong to that person; (2) the contents are true; (3) signatures and handwriting are genuine; (4) a stamped, executed or attested document was duly stamped, executed or attested by the person it purports to be; and (5) electronic exchange between parties took place as it purports.

Common mistakes

• Saying the officer can seize cash, jewellery or stock in a survey. Fix: Remember section 253(7): no removal of assets or stock. The officer can only make an inventory.
• Allowing impounding in a TDS/TCS verification survey. Fix: Under section 253(6), a TDS/TCS survey allows only identification marks, extracts or copies, and statements on oath.
• Saying stock-in-trade can be seized. Fix: Clause (vii) excludes stock-in-trade. It can only be noted in an inventory under clause (vi).
• Treating a prohibitory order as seizure in every case. Fix: Under 247(4)(a), the order for bulky or dangerous valuables is deemed seizure. Under (4)(b), it is not deemed seizure and lasts at most 60 days.
• Saying any Income-tax Officer can order a search on his own. Fix: The approving authority authorises. The officer is the authorised officer acting under that written authority.
• Treating non-production as the only trigger. Fix: Remember both triggers: non-production, and assets representing undisclosed income or property.
• Counting the 30-day release application period from the date of seizure. Fix: Count from the end of the month in which the asset was seized.
• Starting the interest period from the date of seizure or search. Fix: Start from the day after 120 days from the last authorisation and run to completion of the assessment.
• Applying slab rates or the basic exemption to undisclosed income Fix: Use the flat 60% of Section 192(1), plus surcharge only if levied by a Central Act.
• Assessing undisclosed income year by year Fix: Section 292(7) charges it as income of the block period irrespective of the tax year to which it relates. Add it up and tax once.

Exam tips

• Expect MCQs asking what an officer cannot do. The standard answers are: remove stock or assets, and impound in a TDS/TCS survey.
• In case-based questions, check approval, time, place and act in that order, then write a one-line verdict.
• Write 'section 253' with the sub-section when you are sure, such as 253(7) for no removal and 253(10) for approval.
• For a survey versus search comparison, set out purpose, seizure, approval and legal section; keep it to the points you can state exactly.
• Mention that refusal to cooperate attracts the powers under section 246(1).
• Quote section 247 with the clause number, such as 247(1)(vii) or 247(4)(b). Examiners reward precision.
• In case questions, list facts against the powers one by one. A table-like list of bullets gains marks quickly.
• Learn the numbers: 60 days (prohibitory order, attachment window, valuation report) and 6 months (attachment validity).