Income-tax Authorities, Jurisdiction and Faceless Jurisdiction: Income Tax Act 2025 Explained

The Income-tax Act, 2025 lists 12 classes of income-tax authorities in section 236, from the Central Board of Direct Taxes down to Inspectors. Which Assessing Officer handles your file is decided by Board directions under section 241 and by where you carry on business or reside under section 242. The Central Government can also notify a faceless scheme under section 245 that removes the face-to-face interface "to the extent technologically feasible".

This guide explains who the authorities are, how jurisdiction is allocated, how long you have to object to an officer's jurisdiction, and what the faceless provision actually says. Everything below is taken from sections 236, 237, 241, 242, 243, 244 and 245 of the Act as amended by the Finance Act, 2026. Last reviewed against that text on 10 November 2026.

Who are the income-tax authorities under the Income-tax Act, 2025?

Section 236 names the classes of authorities "for the purposes of this Act". Several ranks are grouped under two titles, for example Directors or Commissioners, so the list has 12 entries.

Clause of section 236	Authority
(a)	Central Board of Direct Taxes (constituted under the Central Boards of Revenue Act, 1963), called "the Board"
(b)	Principal Directors General or Principal Chief Commissioners of Income-tax
(c)	Directors General or Chief Commissioners of Income-tax
(d)	Principal Directors or Principal Commissioners of Income-tax
(e)	Directors or Commissioners of Income-tax, or Commissioners of Income-tax (Appeals)
(f)	Additional Directors or Additional Commissioners, or Additional Commissioners (Appeals)
(g)	Joint Directors or Joint Commissioners, or Joint Commissioners (Appeals)
(h)	Deputy Directors or Deputy Commissioners
(i)	Assistant Directors or Assistant Commissioners
(j)	Income-tax Officers
(k)	Tax Recovery Officers
(l)	Inspectors of Income-tax

Where the Act uses the term Assessing Officer, it means the officer who has been given jurisdiction over a person or area under the sections described below. The Act does not make "Assessing Officer" a separate class in section 236.

Who appoints income-tax authorities?

Under section 237(1) the Central Government may appoint any persons it thinks fit as income-tax authorities. Under section 237(2), the Government may authorise the Board, a Principal Director General, Director General, Principal Chief Commissioner, Chief Commissioner, Principal Director, Director, Principal Commissioner or Commissioner to appoint authorities below the rank of Deputy Commissioner or Assistant Commissioner. This is always subject to the service rules and orders that apply to public posts.

Section 237(3) lets an authority that the Board has authorised appoint executive or ministerial staff to help it carry out its functions.

How is jurisdiction of income-tax authorities decided?

Section 241 gives the Board the power to direct which authority exercises which power. In practice this is how a taxpayer ends up with one particular officer.

• Section 241(1): authorities exercise their powers and functions as per the directions the Board issues.
• Section 241(2): if the Board so directs, a higher-ranking authority can exercise the powers of a lower-ranking one.
• Section 241(3): the Board's directions can authorise another authority to issue written orders to its subordinates.
• Section 241(4): in issuing these directions or orders, the Board or the authorised authority may use any one or more of four criteria: territorial area, persons or classes of persons, incomes or classes of income, and cases or classes of cases.

Which Assessing Officer has jurisdiction over me?

Once an Assessing Officer has been given an area under a section 241 direction, section 242(1) says his jurisdiction within that area covers:

• a person carrying on business or profession, if the place of business or profession is in the area. If the business or profession is carried on in more than one place, the test is where the principal place is situated; and
• any other person, if he resides in the area.

Section 242(6) adds that, whatever a section 241 direction says, every Assessing Officer has all the powers the Act gives an Assessing Officer in respect of income accruing, arising or received within his area.

Can the Board give your case to a more senior officer?

Yes. Under section 241(5)(b), the Board can empower a specified authority to order that an Assessing Officer's powers for an area, persons, incomes or cases be exercised by an Additional Commissioner, Additional Director, Joint Commissioner or Joint Director. Section 241(6) then reads every reference to the Assessing Officer in the Act and rules as a reference to that senior officer. Any provision requiring the approval or sanction of the Joint Commissioner does not apply in that case.

Can two officers share the same area?

Yes. Under section 241(7) the directions may require two or more Assessing Officers to exercise powers concurrently over the same area, persons, incomes or cases. If they are of different classes, the lower-ranking officer works as the higher one directs. References to the Assessing Officer are then read as references to the higher authority.

Can the transfer of my case to another officer be challenged?

Section 243 lets a "specified income-tax authority" move a case. The Act defines that term in section 243(7) as a Principal Director General, Director General, Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner.

• Same specified authority: it can transfer a case between Assessing Officers subordinate to it (section 243(1)).
• Different specified authorities: if they agree, the authority from whose area the case moves passes the order. If they disagree, the Board or an authority the Board notifies passes it (section 243(2)).
• Hearing: the order is passed after giving you a reasonable opportunity of being heard, wherever possible, and after recording reasons (section 243(3)). No hearing is needed when all the officers' offices are in the same city, locality or place (section 243(4)).
• Timing: a transfer can happen at any stage of the proceedings, and notices already issued need not be re-issued (section 243(5)).

Section 243(6) defines "case" widely. It covers all proceedings under the Act for any year, pending or completed before the order, and also proceedings started after it.

What happens when the officer changes mid-proceeding?

Under section 244(1), when one authority stops exercising jurisdiction and a successor takes over, the successor may continue the proceeding from the stage where the predecessor left it. Under section 244(2), before he continues, you may demand that the earlier proceeding (or part of it) be reopened, or that you be reheard before any assessment order is passed against you.

How long do I have to object to an officer's jurisdiction?

Section 242(4) closes the door on jurisdiction objections after a set point. The point depends on whether you filed a return.

Your situation	Last point to question jurisdiction (section 242(4))
You filed a return under section 263(1)	One month from the date you were served a notice under section 268(1) or 270(8), or completion of the assessment, whichever is earlier (clause (a))
You filed no such return	Expiry of the time allowed by the notice under section 268(1) or 280(2) for making the return, or by the notice under section 271(2) to show cause why the assessment should not be completed to the best of the Assessing Officer's judgment, whichever is earlier (clause (b))
Action has been taken under section 247 or 248	One month from the date you were served a notice under section 294(1)(a), or completion of the assessment, whichever is earlier (clause (c))

Who decides a dispute about jurisdiction?

Under section 242(2), a question about whether an Assessing Officer has jurisdiction to assess a person is decided by the specified income-tax authority. Under section 242(3), where the question involves areas under different specified authorities, those authorities decide it together. If they disagree, the Board, or an authority the Board notifies, decides it. Under section 242(5), if you raise the objection in time and the Assessing Officer is not satisfied that your claim is correct, he must refer the matter for determination before the assessment is made.

What is faceless jurisdiction under section 245?

Section 245(1) lets the Central Government, by notification, make a scheme for four things: how the powers in section 241 are exercised, how jurisdiction is vested in the Assessing Officer under section 242, how cases are transferred under section 243, and how jurisdiction is exercised on a change of incumbency under section 244.

Section 245(2) states the purpose: greater efficiency, transparency and accountability, by:

• eliminating the interface between the authority and the assessee or any other person, to the extent technologically feasible;
• optimising use of resources through economies of scale and functional specialisation; and
• introducing team-based exercise of powers by two or more authorities concurrently, with "dynamic jurisdiction".

Under section 245(3), the Government can also notify that any provision of the Act will not apply, or will apply with exceptions, modifications and adaptations, to give effect to the scheme. Under section 245(4), every such notification must be laid before each House of Parliament.

The Act itself sets out only the enabling framework. The working details of a faceless scheme (which proceedings, how notices reach you, which unit handles what) sit in the notification and are not in the Act text. Check the notification in force before relying on any assumption about a particular proceeding.

Examples: how these rules play out

Example 1: Meena, a salaried individual who moves city

Meena is a salaried employee who lived in Pune and moves to Jaipur during the tax year. She has no business. Under section 242(1)(b), the Assessing Officer whose area includes her residence has jurisdiction over her. After the move, the officer for her new area is the one with jurisdiction. If the two cities fall under different specified authorities and her case is moved, section 243(2) decides who passes the transfer order.

Example 2: Ravi, a trader with shops in two cities

Ravi runs a hardware business with a shop in Indore and a smaller one in Bhopal. Under section 242(1)(a), where the business is carried on in more than one place, the Assessing Officer whose area includes the principal place of business has jurisdiction. Ravi's main shop and his books are in Indore, so the Indore officer is the one who handles his case. If Ravi believed his case belonged elsewhere, he would have to say so within the time in section 242(4).

Example 3: Suresh files his return and later doubts the officer's jurisdiction

Suresh files a return under section 263(1). He is later served a notice under section 268(1) on 10 July. Under section 242(4)(a), he can question the officer's jurisdiction until one month after the service of that notice, or until the assessment is completed, whichever is earlier. If he raises it on 25 July, he is within the limit. If he raises it on 25 August and the assessment is still pending, section 242(4)(a) bars the objection, because the one month has passed. If he raises it on 25 July and the officer is not satisfied, the officer refers the matter for determination under section 242(5) before assessing him.

Example 4: a new officer takes over Kavita's pending assessment

Kavita's assessment is half-finished when the officer handling it is succeeded by another. Under section 244(1), the new officer can carry on from where the earlier one stopped. Under section 244(2), before he does, Kavita may demand that the earlier proceeding be reopened in whole or part, or that she be reheard before any assessment order is passed against her.

Quick reference

Question	Answer	Where
Classes of authorities	12 listed	Section 236
Who appoints authorities	Central Government; Board and senior authorities for ranks below Deputy or Assistant Commissioner	Section 237(1), (2)
Who sets jurisdiction	The Board, by directions or orders	Section 241(1) to (4)
Business person's officer	Officer for the area of the (principal) place of business	Section 242(1)(a)
Any other person's officer	Officer for the area of residence	Section 242(1)(b)
Who decides a jurisdiction dispute	Specified authority, or authorities together, or the Board	Section 242(2), (3)
Case transfer	Specified authority, after hearing where possible	Section 243
Change of officer	Successor continues; you may demand reopening or rehearing	Section 244
Faceless scheme	Notified by the Central Government; laid before Parliament	Section 245

Common mistakes

• Raising a jurisdiction objection late. Section 242(4) shuts it out one month after the notice is served or on completion of assessment, whichever is earlier, so the clock matters.
• Assuming the officer is fixed by the PAN or by where the return was filed. Section 242(1) ties it to the place of business or profession, or to residence, as covered by the Board's directions.
• Overlooking a change of incumbent. Section 244(2) gives you the right to demand reopening or a rehearing, but it must be asked for before the successor continues.
• Treating faceless as a settled rule for every proceeding. Section 245 only empowers a scheme. What it covers depends on the notification.
• Expecting an Assessing Officer to be a particular rank. Under section 241(5)(b) and (6), the powers can be vested in an Additional or Joint Commissioner or Director.

How do CA firms keep track of jurisdiction and notices across clients?

A jurisdiction time limit is usually counted from the date a notice is served, so the real risk is a notice sitting unread. Finexo's practice management software lets a CA firm log notices against each client, set the objection or response date, and get reminded before it passes. It does not file anything with the department for you.

For related topics, see our guides on income-tax survey powers and limits and assessment procedure and best judgment assessment.

Where this is in the Act

• Section 236: classes of income-tax authorities
• Section 237: appointment of income-tax authorities
• Section 241: jurisdiction of income-tax authorities
• Section 242: jurisdiction of Assessing Officers, including the time limit in 242(4)
• Section 243: power to transfer cases
• Section 244: change of incumbent of an office
• Section 245: faceless jurisdiction of income-tax authorities

This article explains the Income-tax Act, 2025 (as amended by the Finance Act, 2026). It is general information, not tax advice. Confirm the position for a specific case with a qualified chartered accountant.