Income Tax Search and Seizure: Your Rights and the Rules (Income-tax Act, 2025)

An income tax search under the Income-tax Act, 2025 is governed by section 247. An officer authorised in writing can enter a place, open lockers and computers, question people on oath and seize books, documents and assets. You keep specific rights while it happens: witnesses must be present, you get copies of the seizure lists, you can copy seized documents, and you can apply to get assets released if you explain their source.

This guide covers who can order a search, what the officer may do, what you can ask for, and the time limits that apply afterwards (sections 247, 248, 250, 251 and rules 148 to 152). The law is as amended by the Finance Act, 2026, and was last reviewed against that text on 10 November 2026. It is general information, not legal advice. If a search happens, call your chartered accountant and a tax lawyer at once.

When can the income tax department search me under the 2025 Act?

Section 247(1) lets a "competent authority" act when, based on information in its possession, it has reason to believe one of two things.

• Non-production of records. A person was issued a summons under section 246(1) or a notice under section 268(1) (or the equivalent under the 1961 Act) to produce books of account, documents or electronic information, and failed to do so. The same applies if such a person has been, or might be, issued a summons or notice and will not produce the records.
• Undisclosed income or property. A person holds an asset, or information about an asset, that represents wholly or partly income or property that has not been, or would not be, disclosed for tax purposes (including under the Black Money Act, 2015).

On that belief the approving authority authorises a Joint Director, Joint Commissioner, Assistant Director, Assistant Commissioner or Income-tax Officer. A Joint Director or Joint Commissioner so authorised can in turn authorise an Assistant Director, Assistant Commissioner or Income-tax Officer. The officer who carries out the search is called the authorised officer.

What paperwork should the officer show?

Rule 148(2) prescribes the authorisation form, and rule 148(3) says it must be in writing, signed by the issuing officer and bear his seal. The person in charge of the premises must give free entry on demand and on production of the authority (rule 148(4)).

Authorisation under	Issued by	Form
Section 247(1)	Approving authority (as empowered by the Board), or a Joint Director or Joint Commissioner so authorised	Form 82
Section 247(2) (place outside the officer's jurisdiction over the person)	Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner	Form 83
Section 247(3) (place not named in the original authorisation)	Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner	Form 84
Section 248(1) (requisition)	Director General, Director, Chief Commissioner or Commissioner (rule 151(1))	Form 86

Ask to read the authorisation and note the form number, the name of the authorising officer and the premises it lists. If the officer wants to search a place the authorisation does not name, section 247(3) lets a senior officer extend it, and that extension is a separate authorisation in Form 84.

What can the officer do during a search?

Section 247(1)(i) to (vii) lists the powers. In plain terms the officer can:

• enter and search any building, place, vessel, vehicle or aircraft where books, documents, electronic information or assets are suspected to be kept;
• require anyone in control of electronic records to give reasonable technical help, including access codes;
• break open a lock, box, locker, safe or almirah, or override a computer access code, if the key or code is not available;
• search a person who is in, entering or leaving the premises, if the officer suspects the person has hidden documents or assets on them;
• mark documents and make extracts or copies, including from a computer system;
• make an inventory of assets and of stock-in-trade found;
• seize books, documents, computer systems and assets, but not stock-in-trade of the business (section 247(1)(vii)).

Where seizure is not practical, the officer may serve a prohibitory order instead. For a bulky or dangerous valuable article, an order not to move or deal with it is deemed a seizure (section 247(4)(a)). For other items, including a bank locker or bank account, the order cannot last more than 60 days and is not treated as seizure (section 247(4)(b)).

The officer may also take help from police, central government officers, or a person or entity approved by the Chief Commissioner or Director General (section 247(5), rule 149). A women-only privacy rule applies: if the premises are occupied by a woman who by custom does not appear in public, she must be told she is free to withdraw before entry (rule 148(7)), and a woman can be searched only by another woman (rule 148(10)).

What are my rights during the search?

Your right or safeguard	Source
Search must be made in the presence of two or more respectable local witnesses, who sign the list of seized items and any statement recorded	Rule 148(11), (13)
The occupant (or someone on their behalf) may attend the search	Rule 148(15)
You get a copy of the lists of seized assets and material; a person searched on their body gets a copy of that list too	Rule 148(15), (16)
Seized items are put in packages bearing the officer's seal; you may add your own seal or signature, and you get a copy of the package list	Rule 148(17), (18)
Sealed packages can be opened only after reasonable notice to you, in front of two respectable witnesses, and you may be present	Rule 148(21)
Copies or extracts of seized material, on application	Section 251(2)
Apply for release of assets if their source is explained	Section 250(2)
Interest from the Government on money held beyond 120 days	Section 250(8), (9)
Object to extended retention before the Board	Section 251(5)

Witnesses are not drawn into later proceedings by default. Under rule 148(14), a person who witnessed a search need not attend as a witness in proceedings under the Act unless specially summoned.

Does what I say during a search count as evidence?

Yes. Section 247(6) allows the authorised officer to examine on oath anyone found in possession or control of books, documents, assets or electronic information, or anyone else present or being searched. The statement can be used as evidence in any proceeding under the Act. The questions are not limited to what was found. They can cover all matters relevant to any investigation connected with a proceeding under the Act.

Section 247(7) adds presumptions. If a person is found in possession or control of books, documents, assets or electronic records, it may be presumed that they belong to that person, that their contents are true, and that signatures and handwriting are genuine. These are presumptions, not final findings, but they shift the burden of explaining the material onto the person concerned. This is why you should read each statement before signing and have your adviser involved as early as possible.

Does a search cover my email, cloud and social media accounts?

It can. Section 261(e) defines "computer system" to include communication devices, remote or cloud servers and "virtual digital space". Section 261(j) describes virtual digital space as including email servers, social media accounts, online investment, trading and banking accounts, websites used to store details of asset ownership, and digital application platforms. "Asset" in section 261(b) includes a virtual digital asset held in physical or virtual form. If the access code is not available, section 247(1)(iii) lets the officer override it, and seized "material" includes backups from software such as Tally and Excel or Word files (section 261(i)).

Will I be told why I was searched?

Not in the form of the reasons. Section 249 says the "reason to believe" or "reason to suspect" recorded under section 247 or 248 shall not be disclosed to any person or authority or the Appellate Tribunal. You can still ask to see the authorisation itself (rule 148) and you are entitled to the lists and copies set out above.

What does "last authorisation executed" mean?

Section 261(f) fixes the date used for the 60-day and 120-day clocks. For a search it is the date the search ended, as recorded in the last panchnama drawn for any person covered by the authorisation. For a requisition under section 248 it is the date the requisitioning officer actually received the items. Section 247(12) adds that "proceeding" covers any year, pending or already completed when the search is authorised, and later proceedings too.

What happens after the search? Key deadlines

The clocks run from different starting points, so keep a dated list. In particular, the 60-day and 120-day periods run from the date the last authorisation for the search was executed, while the 180-day handover period runs from the date the search was initiated. The handover applies only where the authorised officer has no jurisdiction over the person searched (section 251(1)); the Assessing Officer who receives the material then exercises the copying and retention powers.

Provisional attachment of property

Under section 247(8), during the search or within 60 days of the last authorisation being executed, the officer can attach any property of the assessee by written order. The officer must record reasons, be satisfied that it is necessary in the interest of the revenue, and get prior approval of the Principal Director General, Director General, Principal Director or Director. The attachment stays valid for six months from the end of the month in which the order is made.

Valuation of what was found

Within the same period the officer may refer property to a Valuation Officer or a registered valuer, who must report within 60 days of the reference (section 247(9)). Rule 150 sets the method. Land and buildings are valued at the stamp-duty value plus cost of construction and improvements. Jewellery, artworks, shares and securities follow rules 56 and 57. Anything else is valued at the price it would ordinarily fetch in the open market. The report goes in Form 170.

Can the department use seized cash and assets to recover tax?

Yes. Section 250(1) allows seized (or requisitioned) assets to be applied against three kinds of liability: existing tax liabilities where the person is in default; liability determined on completion of the assessment for the relevant years, including penalty and interest; and liability arising from an application before the Interim Boards for Settlement. Seized money can be applied directly, and the assessee is discharged to that extent (section 250(4)). Other assets are treated as under distraint and recovered in the prescribed manner (section 250(5)). Anything left over must be returned forthwith, in the presence of two respectable witnesses (section 250(7), rule 152).

How do I get seized assets released?

Under section 250(2), the Assessing Officer may release seized assets, wholly or partly, to the person from whose custody they were taken. The conditions are:

1. You apply within 30 days from the end of the month in which the asset was seized.
2. The officer is satisfied from your explanation that the nature and source of acquisition of the assets is explained.
3. Any existing liability under section 250(1)(a) is first recovered out of those assets.
4. The Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner gives prior approval.

Assets that qualify must be released within 120 days from the date the last authorisation for the search was executed (section 250(3)).

Can I get copies of seized documents?

Yes. On your application, the authorised officer must allow you to make copies or take extracts, in the presence of the officer or someone the officer empowers, at a place and time the officer appoints (section 251(2)). This matters in practice because your business may need the same records to keep running and to prepare your defence.

The officer may retain seized material until one month from the end of the quarter in which the assessment order is made (section 251(3)(a)). Longer retention needs written reasons and approval from the approving authority (section 251(3)(b)). Retention can never be allowed beyond 30 days after all proceedings for the relevant years are completed (section 251(4)). If you object to the extended retention, you can apply to the Board with your reasons and ask for return of the material, and the Board must give you a hearing first (section 251(5)).

Worked example 1: interest on money held after 120 days

Section 250(8) and (9) make the Government pay simple interest at 0.5% for every month or part of a month on the money still held after the 120-day window. The base amount is (A − B) + (C − D), where A is money seized, B is money released, C is proceeds of assets sold towards liabilities and D is the total liabilities.

Assumptions (tax year 2026-27 search): Meena, a trader, has Rs 12,00,000 in cash seized. The last authorisation was executed on 10 June 2026. Her liability on completion of assessment is Rs 7,00,000. No money was released, no assets were sold, and the assessment is completed on 15 January 2027.

Step	Working	Result
1. 120 days after 10 June 2026	10 June + 120 days	8 October 2026
2. Interest period starts	Day after the 120 days expire	9 October 2026
3. Interest period ends	Date assessment is completed	15 January 2027
4. Months or part of month	9 Oct–8 Nov, 9 Nov–8 Dec, 9 Dec–8 Jan, 9 Jan–15 Jan	4
5. Base amount	(12,00,000 − 0) + (0 − 7,00,000)	Rs 5,00,000
6. Interest	5,00,000 × 0.5% × 4	Rs 10,000

Worked example 2: a partial release, assets sold and a smaller base

Assumptions: Ravi has Rs 9,00,000 in cash seized. After he explained the source of Rs 3,00,000, it was released under section 250(2). Assets worth Rs 2,00,000 were later sold towards recovery. His total determined liabilities are Rs 7,50,000. The interest period is 2 months (or part of a month).

Item	Working	Amount (Rs)
A: money seized		9,00,000
B: money released		3,00,000
(A − B)	9,00,000 − 3,00,000	6,00,000
C: proceeds of assets sold		2,00,000
D: liabilities		7,50,000
(C − D)	2,00,000 − 7,50,000	−5,50,000
Base amount	6,00,000 − 5,50,000	50,000
Interest for 2 months	50,000 × 0.5% × 2	500

Real-life example 1: the locker that could not be seized

Sunita runs a jewellery showroom. During a search, officers find her stock-in-trade and a bank locker whose contents cannot be examined that day. Under section 247(1)(vii), the stock-in-trade cannot be seized, though the officer can list it in an inventory under clause (vi). For the locker, the officer serves a prohibitory order under section 247(4)(b). She cannot operate it without the officer's permission, but the order lapses after 60 days, and it is not a seizure.

Real-life example 2: the family property attached

Anil's house is searched on 10 June 2026 and the last authorisation is executed that day. On 20 July 2026, with the prior approval of a Director and after recording reasons, the officer provisionally attaches a plot in Anil's name. The order is within 60 days (the window ends 9 August 2026). It stays valid until 31 January 2027, which is six months from the end of July.

Real-life example 3: a release application filed late

Ravi's cash was seized on 10 June 2026. His 30-day clock runs from the end of June, so the release application is due by 30 July 2026. His CA reaches the file on 15 August 2026. Section 250(2) fixes the window in the Act itself, so the late application is exposed to rejection on that ground. If you are searched, start the source-of-funds paperwork in the first week.

What is a requisition under section 248?

Sometimes books, documents or assets are already in another authority's custody under a different law, such as the police. Section 248 lets the approving authority authorise a requisitioning officer to require that authority to deliver them to the income tax department. The conditions are that you failed to produce records on a summons or notice, that you would not produce them even if they were returned, or that the assets represent undisclosed income. Delivery is made forthwith or when the other authority no longer needs to hold the items (section 248(2)).

Once delivered, sections 247(4)(b), 247(7) to (11), 250 and 251 apply as if the officer had seized the items from you, with "requisitioning officer" read in place of "authorised officer" (section 248(3)). Rule 151 prescribes the paperwork: a written requisition with a copy of the Form 86 authorisation, a copy forwarded to you, and a list of items delivered, with sealed packages and a copy of the list going to you.

Is there a special return after a search?

Yes. A return required under section 294(1)(a) for a search under section 247 or a requisition under section 248 is filed in Form ITR-BN (rule 180(1)). A company files it electronically under digital signature. Any other person files electronically under digital signature or through an electronic verification code (rule 180(2)). Credits for tax paid against undisclosed income of the block period, other than self-assessment tax, are subject to verification by the Assessing Officer (rule 180(4)).

Common mistakes during and after a search

• Signing a statement unread. Anything recorded under section 247(6) can be used in evidence, and it can cover matters beyond what was found.
• Not asking for the seizure list and package list. You are entitled to copies under rule 148(15), (16) and (18). Without them you cannot later match what was taken.
• Missing the 30-day release window. Section 250(2) counts 30 days from the end of the month of seizure, not from when you decide to act.
• Not requesting copies of seized books. Section 251(2) lets you copy or extract them, but only if you apply.
• Assuming a prohibitory order is a seizure. It is not, and it ends after 60 days under section 247(4)(b).
• Ignoring the retention end date. Track when the officer must return your material under section 251(3) and (4).

Quick reference: limits and time periods

Item	Period or rate	Section / rule
Prohibitory order (not a seizure)	Up to 60 days	247(4)(b)
Provisional attachment: make the order	During search, or within 60 days of last authorisation	247(8)
Provisional attachment: validity	6 months from end of the month of the order	247(8)(b)
Valuation reference and report	Reference within 60 days; report within 60 days of reference	247(9)
Application for release	30 days from end of month of seizure	250(2)
Release of qualifying assets	120 days from last authorisation	250(3)
Interest on excess money held	0.5% per month or part of a month	250(8), (9)
Handover to jurisdictional Assessing Officer (only if the authorised officer lacks jurisdiction over the person)	180 days from search start	251(1)
Retention of seized material	Up to 1 month from end of quarter of assessment order	251(3)(a)
Retention cap after all proceedings end	30 days	251(4)

How CA firms can prepare clients

Most of the damage in a search comes from disorganised records and unrecorded explanations. Keeping a current list of each client's bank accounts, lockers, asset sources and statutory registers makes the 30-day release application far quicker to prepare. Finexo's practice management software lets a CA firm keep client documents and dated deadlines in one place, so that a section 250(2) window or a retention end date is not left to memory. It does not give legal advice or represent a client before the department.

Where this is in the Act

• Section 247: search and seizure, powers, prohibitory orders, oath statements, presumptions, provisional attachment, valuation.
• Section 248: requisition of books and assets held by another authority.
• Section 250: application of seized or requisitioned assets, release, interest.
• Section 251: copies, extracts, retention and release of documents.
• Rule 148: search procedure and Forms 82, 83, 84. Rule 149: approved persons, Form 85. Rule 150: valuation, Form 170. Rule 151: requisition, Form 86. Rule 152: release of remaining assets. Rule 180: Form ITR-BN.

Section 247(10) applies the search and seizure provisions of the Bharatiya Nagarik Suraksha Sanhita, 2023 so far as they can apply, and section 247(11) lets the Board make rules on procedure. This article does not cover those provisions in detail.