Section 252 · Administration
Section 252 of the Income-tax Act, 2025 — Power to Call for Information
By CA Rajat Agrawal
Updated 05 Jul 2026
Chapter XIV
📜 What the law says — Section 252, Income-tax Act 2025
252. ( 1) The Assessing Officer, the Joint Commissioner or the Joint
Commissioner (Appeals) or the Commissioner (Appeals) may, for the purposes
of this Act, require any—
(a) person, including a banking company or any officer thereof, to furnish,
within such time, requisite information or to furnish statements of account
and affairs verified in such manner specified by such authority, giving
such information in relation to such matters as, in the opinion of such
authority, will be useful for, or relevant to, any enquiry or proceedings
under this Act;
(b) firm to furnish him with a return of the names and addresses of the
partners of the firm and their respective shares;
(c) Hindu undivided family to furnish him with a return of the names and
addresses of the manager and the members of the family;
(d) person whom he has reason to believe to be a trustee, guardian or agent,
to furnish him with a return of the names of the persons for or of whom
he is trustee, guardian or agent, and of their addresses;
(e) assessee to furnish a statement of the names and addresses of all persons
to whom he has paid in any tax year, rent, interest, commission, royalty,
brokerage, or any annuity (not being any annuity taxable under the head
“Salaries”), amounting to more than ` 10000, or such higher amount as
may be prescribed, together with particulars of all such payments made;
(f) dealer, broker or agent or any person concerned in the management
of a stock or commodity exchange to furnish a statement of the names
and addresses of all persons to whom he or the exchange has paid any
sum in connection with the transfer, whether by way of sale, exchange
or otherwise, of assets, or on whose behalf or from whom he or the
exchange has received any such sum, together with particulars of all
such payments and receipts.
(2) The powers conferred under sub-section (1)(a) may also be exercised by the
competent authority or the Assistant Director.
(3) The powers under sub-section (1)––
(a) shall not be exercised by any income-tax authority below the rank of
Principal Director or Director or Principal Commissioner or Commis-
sioner, other than the Joint Director or Assistant Director, without the
prior approval of the Pr
In plain language
What Section 252 actually is
Section 252 of the Income-tax Act, 2025 carries the title "Power to call for information." It is the provision that lets specified income-tax authorities compel any person — including banks, firms, HUFs, trustees, brokers and stock/commodity exchanges — to furnish information, statements of accounts, and particulars that the authority considers useful or relevant to any enquiry or proceeding under the Act. It is the 2025 Act's re-enacted successor to Section 133 of the Income-tax Act, 1961, and it operates within the tax-administration machinery of the new Act (which is effective from 1 April 2026). This is not the search-and-seizure power — that lives in Section 247. Section 252 is a softer, notice-based information-gathering tool.
Who can use this power
- Assessing Officer (AO) — for information tied to an assessment or enquiry.
- Joint Commissioner / Joint Commissioner (Appeals) / Commissioner (Appeals) — in connection with proceedings before them.
- Prescribed / competent authority and Assistant Director — who may exercise the general information power under sub-section (1)(a) even where no proceeding is pending, subject to approval requirements.
Who can be asked, and what they must furnish
- Any person, including a banking company or its officer — to furnish statements of account and affairs or any specified information.
- Firms — names, addresses and profit shares of partners.
- Hindu Undivided Families (HUF) — names and addresses of the manager (karta) and members.
- Trustees, guardians or agents — names and addresses of the beneficiaries on whose behalf they act.
- Any assessee — a statement of names/addresses of persons to whom they paid rent, interest, commission, royalty, brokerage or annuity exceeding ₹10,000 (or such amount as prescribed), with the amounts.
- Dealers, brokers, agents and exchange managers — details of transactions of persons dealing through them.
The two flavours of the power
There are two distinct uses that taxpayers should not confuse:
- Case-specific enquiry: where a proceeding (assessment, appeal, penalty) is pending, the AO/Joint Commissioner/Commissioner (Appeals) can call for information relevant to that matter.
- General information (the "133(6)-type" power): the prescribed authority can call for information even when no proceeding is pending against the named person, but this broader use requires prior approval of the specified senior authority. This is the tool behind wide "verification" notices sent to banks, registrars, exchanges and third parties.
Key conditions and limits
- The information sought must be useful for or relevant to an enquiry or proceeding under the Act — it cannot be a fishing expedition without nexus.
- The notice must specify a reasonable time to comply and the manner of verification.
- For the general (no-proceeding-pending) power, senior-level approval is mandatory.
- The provision aligns with India's information-exchange obligations under tax treaties and international agreements.
How it interacts with related sections
Section 252 sits alongside the Annual Information Statement / reporting regime and the survey, search and requisition powers. If a person ignores a valid Section 252 notice, the department can move to penalty provisions for non-compliance and, in serious cases, escalate to survey (Section 253-type power) or search (Section 247). Information gathered under Section 252 frequently feeds into reassessment and the department's data-matching systems.
Practical implications for taxpayers
- Banks, mutual funds, registrars and exchanges routinely receive bulk 252 notices — respond within the deadline, in the format asked.
- Ordinary taxpayers usually see this power indirectly: your interest, rent or brokerage payments get reported by the payer, so under-reporting is easily detected.
- A 252 notice does not automatically mean you are under investigation — often you are a third-party source of data about someone else.
- Always keep proof of what you filed and by when; non-response invites penalty and adverse inference.
💡 Example
Worked example 1 — assessee reporting threshold: Mr. Verma runs a proprietorship and during FY 2026-27 pays ₹9,000 as commission to Agent A and ₹45,000 as commission to Agent B. If the AO issues a Section 252 notice asking for a statement of commission payments exceeding ₹10,000, Mr. Verma must disclose the ₹45,000 paid to Agent B (name, address, amount) but the ₹9,000 to Agent A falls below the threshold and need not be listed. This lets the department cross-check whether Agent B declared that ₹45,000 as income.
Worked example 2 — bank as third party: A cooperative bank receives a general Section 252 notice (with senior-authority approval) to furnish details of all customers whose aggregate cash deposits in FY 2026-27 crossed ₹10,00,000. The bank must compile and verify the list within the time given. Here the bank is not the "accused" — it is simply an information source, and the data helps the department match deposits against filed returns.
A short relatable story: Priya, a salaried teacher, was alarmed when her housing society's treasurer mentioned that the society had received an income-tax notice asking for the names of members who paid maintenance and rent above ₹10,000. She worried she was "being investigated." Her CA explained that this was a routine Section 252 request — the society was merely a data source, and as long as Priya had honestly shown her rental income in her return, she had nothing to fear. The notice was about verification, not accusation.
| Aspect | Section 252, Income-tax Act 2025 | Section 133, Income-tax Act 1961 (old) |
|---|
| Title | Power to call for information | Power to call for information |
| Who can exercise | AO, Joint Commissioner, Joint/Commissioner (Appeals); prescribed authority & Assistant Director for general power | AO, Deputy/Joint Commissioner, Commissioner (Appeals); prescribed authority for 133(6) |
| Reporting threshold (rent, interest, commission, royalty, brokerage, annuity) | Exceeding ₹10,000 (or as prescribed) | Exceeding ₹1,000 historically; enhanced over time |
| General power without pending proceeding | Yes, with senior-authority approval (sub-section (1)(a)) | Yes, under Section 133(6) with approval |
| Entities covered | Any person incl. banks, firms, HUF, trustees, brokers, exchanges | Same set of entities |
| Nature | Notice-based information gathering (not search) | Notice-based information gathering (not search) |
Related sections
Section 247 — Search and seizure Section 253 — Power of survey Section 246 — Power to requisition books of account Section 268 — Return of income and reporting obligations Section 133 (1961 Act) — Power to call for information (predecessor) Section 288 — Penalty for failure to furnish information
Frequently asked questions
Does a Section 252 notice mean I am under investigation?
Not necessarily. Section 252 is often used to collect information from third parties like banks, firms or societies about other people. Being asked for information does not by itself mean the department suspects you of wrongdoing.
What is the ₹10,000 limit in Section 252?
An assessee can be required to furnish details of persons to whom they paid rent, interest, commission, royalty, brokerage or annuity exceeding ₹10,000 in the year (or such amount as prescribed). Payments below the threshold generally need not be listed.
Which old section does Section 252 replace?
Section 252 of the Income-tax Act, 2025 is the successor to Section 133 of the Income-tax Act, 1961, both titled 'Power to call for information.' The structure and purpose are substantially the same.
Can the department call for information even if no case is pending against me?
Yes. The general information power (sub-section (1)(a), similar to old Section 133(6)) allows this, but it requires prior approval of a specified senior authority, so it cannot be used casually.
What happens if I ignore a Section 252 notice?
Non-compliance can attract a penalty and lead the department to draw an adverse inference. In serious cases it may escalate to survey or search powers, so it is always safer to respond within the time allowed.
Is Section 252 the same as an income-tax raid?
No. A raid is search and seizure under Section 247. Section 252 is only a written request for information or statements — there is no entry, search or seizure of premises under it.
Can banks be asked to share customer information under Section 252?
Yes. A banking company and its officers are expressly covered and can be required to furnish statements of account or specified customer information, subject to the notice conditions and, for the general power, senior-authority approval.
C
CA Rajat Agrawal
Chartered Accountant, EaseValue · Reviewed 05 Jul 2026
This explainer is prepared and reviewed by EaseValue's tax team, based on the text of the Income-tax Act, 2025 (as amended by the Finance Act, 2026).
Disclaimer: This page explains the law in general terms for education and is not professional advice. The Income-tax Act, 2025 takes effect from 1 April 2026; provisions, thresholds and interpretations may change. Please confirm your specific position with our team before acting.
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