Direct Tax Laws and International Taxation · Survey, Search and Seizure

Survey under Income-tax Act 2025: Powers and Procedure

Updated 11 October 2026 · Fact-checked

A survey under section 253 of the Income-tax Act, 2025 lets an income-tax authority enter a business, profession or charitable place, inspect books, check stock, record statements and impound records. It needs prior approval from a senior authority, is limited to working hours, and never allows removal of assets or stock.

Understand Survey: Power and Procedure under Income-tax Act 2025

A survey is a visit by the tax department to a place of business, profession or charitable activity. The aim is verification. The officer checks books, stock and assets, and collects information useful for any proceeding. It is not a raid.

The power sits in section 253. The officer can enter a place that falls in the officer's assigned area, is occupied by a person the officer has jurisdiction over, or is one where the officer is authorised by the relevant authority. The place includes any other place, even a non-business one, where the person says books, documents, cash, stock, valuables or a computer system of the business are kept.

On entry, the officer can require the proprietor, trustee, employee or anyone helping in the business to give technical help (including access codes) for inspecting books and electronic records, to allow checking of assets and stock, and to furnish information relevant to any proceeding.

The officer can also place identification marks on books, make extracts or copies, record statements on oath, impound books, documents or a computer system after recording reasons, and make an inventory of assets or stock. Impounding is limited to 15 days (excluding holidays) unless the approving authority gives prior approval for longer.

The key contrast with search: in a survey, the officer must never remove any asset or stock. There is no seizure. Search and seizure is a separate power covered in its own topic.

Key rules to remember

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).

How to solve Survey: Power and Procedure under Income-tax Act 2025 questions

Use this order for any survey question. It keeps your answer tied to the section and stops you mixing survey with search.

1Identify the type: a general survey under section 253(1) or a TDS/TCS verification survey under section 253(4), or an event-expenditure inquiry under section 253(8).
2Check the place: is it a business, profession or charitable place, or another place where the person says books or stock are kept?
3Check approval and timing: was prior approval taken from the specified senior authority, and did entry happen in permitted hours?
4Check who the authority is: confirm the officer falls in the section 253(11) definition; an Inspector has limited powers.
5List what the officer did and match each act to a power: inspection, verification of stock, statements, marks, copies, impounding, inventory.
6Test each act against the limits: impounding period, no removal of stock, and restricted powers in a TDS/TCS survey.
7State the conclusion in one line and mention the consequence of non-cooperation (section 246(1) powers).

Quickest way: Allowed or not: a 4-point check

When to use it: Use for MCQs and short case questions that ask whether an officer's action during a survey is valid.

Approval: was prior approval taken? If no, the action is defective.
Time: business hours for business places; sunrise to sunset otherwise, and for TDS surveys.
Act: removal or seizure of stock or assets is never allowed in a survey.
Duration: impounding beyond 15 days (excluding holidays) needs prior approval of the approving authority.

Common mistakes in Survey: Power and Procedure under Income-tax Act 2025

Saying the officer can seize cash, jewellery or stock in a survey.
Students blend survey with search under section 247.
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.
Students apply the general survey powers to every survey.
Fix: Under section 253(6), a TDS/TCS survey allows only identification marks, extracts or copies, and statements on oath.
Stating that an officer can enter at any time of day.
Timing rules are skipped as minor detail.
Fix: Business places: open hours. Other places and TDS surveys: after sunrise and before sunset.
Forgetting prior approval or naming the wrong approver.
Students focus on the officer's powers and not on the safeguards.
Fix: Section 253(10): prior approval of the Principal Director General, Director General, Principal Chief Commissioner or Chief Commissioner.
Saying impounding can be for any period the officer decides.
The 15-day limit is remembered loosely.
Fix: Up to 15 days excluding holidays; beyond that only with prior approval of the approving authority. Reasons must be recorded.
Treating the survey as limited to the business premises only.
Students read 'place' narrowly.
Fix: Section 253(2) extends it to any other place where the person says books, cash, stock or a computer system of the business are kept.

Worked examples

Example 1

During a survey at the shop of Mehta Traders in Surat, held in business hours with prior approval of the Chief Commissioner, the officer finds unrecorded stock worth ₹6,00,000. He records an inventory, takes the stock to the department godown, and impounds the account books for 10 days. Examine the validity of each action.

Show the solution

Entry: the shop is a business place, entry was in business hours and with prior approval. Valid under section 253(3) and (10).
Inventory: the officer may make an inventory of stock checked or verified under section 253(5)(d). Valid.
Taking the stock away: section 253(7) says the officer shall on no account remove any asset or stock. Invalid.
Impounding books for 10 days: allowed if reasons are recorded, since the period is within 15 days (excluding holidays). Valid on that condition.

Answer: Entry, inventory and impounding of books for 10 days (with recorded reasons) are valid. Removal of the stock worth ₹6,00,000 is not allowed in a survey; the stock must stay at the premises.

Example 2

An Assessing Officer wants to verify TDS compliance of Kaveri Infra Ltd. He enters its office at 11 A.M. on a working day, inspects records, makes photocopies, records a statement on oath, and impounds the TDS ledger for 5 days. Which actions are permitted?

Show the solution

This is a TDS/TCS verification survey under section 253(4). Entry is allowed after sunrise and before sunset; 11 A.M. qualifies.
The officer may require technical help and information; inspection of records is allowed.
Under section 253(6), only actions under section 253(5)(a) and (b) are permitted: identification marks, extracts or copies, and statements on oath.
Copies and the statement on oath are therefore valid.
Impounding is under section 253(5)(c), which is not available in this survey. Invalid, even for 5 days.

Answer: Entry, inspection, copies and the sworn statement are permitted. Impounding the TDS ledger is not permitted in a TDS/TCS verification survey.

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).

Practice questions from Survey, Search and Seizure

Survey: Power and Procedure under Income-tax Act 2025: frequently asked questions

What is the difference between survey and search under the Income-tax Act?

A survey, under section 253, is a verification visit to a business or similar place. The officer can inspect, record statements and impound records but cannot remove stock or assets. A search, under section 247, is a more intrusive action that can lead to seizure. Study both together for comparison questions.

Who can conduct a survey?

An income-tax authority listed in section 253(11), such as a Commissioner, Director, Joint Commissioner, Assistant or Deputy Director, Assessing Officer or Tax Recovery Officer, acting after prior approval. An Inspector has powers only for limited purposes: section 253(1)(i), (5)(a) and (8).

Can the officer take books of account away during a survey?

Yes, books, documents or a computer system can be impounded after recording reasons, for up to 15 days excluding holidays. A longer period needs prior approval of the approving authority. Assets and stock cannot be removed.

What happens if the person refuses to cooperate in a survey?

Under section 253(9), the officer gets all the powers under section 246(1) to enforce compliance with the requirement. This covers refusal or evasion in giving facility, information or a statement.