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CA Final · Direct Tax Laws & International Taxation · Taxation of Digital Transactions

On 5 December 2026 (tax year 2026-27) a requisition is made under the Income-tax Act, 2025 for the books of account and digital wallet records of Meridian Tokens Pvt Ltd. The Authorised Officer actually receives the books and documents on 20 December 2026. Up to which date does the block period run?

The block period ends on 20 December 2026. In a requisition, the last authorisation is treated as executed when the Authorised Officer actually receives the books, documents or assets, not when the requisition is made.

  1. A5 December 2026, the date of making the requisition
  2. B31 March 2027, the end of the tax year
  3. C20 December 2026, the date of actual receipt by the Authorised OfficerCorrect
  4. DThe date the company's records were last updated

Explanation

For a requisition, the last authorisation is deemed executed on the actual receipt of the books of account, documents or assets by the Authorised Officer. The block period therefore ends on 20 December 2026. Choosing 5 December confuses the date of requisition with the date of execution.

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