Section 253 · Administration
Section 253 of the Income-tax Act, 2025 — Powers of Survey (Tax Survey / Successor to Section 133A)
By CA Rajat Agrawal
Updated 05 Jul 2026
Chapter XIV
📜 What the law says — Section 253, Income-tax Act 2025
253. (1) Irrespective of anything contained in any other provision of this Act,
an income-tax authority may enter any place at which a business or profession,
or activity for charitable purpose is carried on, whether such place be the principal
place or not of such business or profession or of such activity for charitable purpose,
where such place—
(a) is within the limits of the area assigned to such authority; or
(b) is occupied by any person in respect of whom such authority exercises
jurisdiction; or
(c) in respect of which such authority is authorised for the purposes of this
section by income-tax authority, who is assigned the area within which
such place is situated or who exercises jurisdiction in respect of any
person occupying such place,
and, upon entry into such a place, may require any proprietor, trustee, employee
or any other person who may at that time and place be attending in any manner
to, or helping in, the carrying on of such business or profession or such activity for
charitable purpose—
(i) to provide the necessary technical and other assistance (including access
code) to enable the inspection of such books of account or other docu-
ments, or information in electronic form or on a computer system, as
may be required and which may be available at such place;
(ii) to provide the necessary facility to check or verify the asset, stock, which
may be found therein; and
(iii) to furnish such information as such authority may require as to any
matter which may be useful for, or relevant to, any proceeding under
this Act.
(2) For the purposes of this section, a place where a business or profession, or
activity for charitable purpose is carried on shall also include any other place,
whether any business or profession or activity for charitable purpose is carried on
therein or not, in which the person carrying on such business or profession or activity
for charitable purpose states that any of his books of account or other documents
or any part of his cash or stock or other valuable article or thing or computer
system relating to such business or profession or activity for charitable purpose,
are or is kept.
(3) An income-tax authority may enter any place of business or profession or activity
for charitable purpose referred to in sub-sections (1) and (2), only during the hours
at which s
In plain language
What Section 253 is about
Section 253 of the Income-tax Act, 2025 gives income-tax authorities the power of survey — the right to walk into a business, professional or charitable premises, inspect books of account (paper or digital), verify cash, stock and other assets, and gather information to check whether income and taxes have been correctly reported. It is the 2025 Act's successor to the well-known Section 133A of the Income-tax Act, 1961, effective from 1 April 2026.
A survey is not the same as a search and seizure ("raid" under the search provisions). In a survey the officer generally cannot seize cash or stock and normally acts only at the place of business during working hours. It is a lighter, on-the-spot verification tool.
Who it applies to
- Any person carrying on a business or profession — the survey can happen at the shop, office, factory, godown or branch.
- Charitable and religious institutions carrying on an activity for a charitable purpose.
- Deductors and collectors of TDS/TCS — officers can survey to verify that tax deducted or collected at source has been correctly deducted, collected and deposited.
- Persons holding books/documents elsewhere — if records are kept at a place other than the business premises (e.g., an accountant's office), that place can also be entered.
Key conditions and safeguards
- Hours of entry. A place of business, profession or charitable activity may be entered only during the hours it is open for that activity. Any other place may be entered only after sunrise and before sunset.
- Prior approval. Action under this section must generally be taken with the prior approval of a senior authority — the Principal Director General / Director General or Principal Chief Commissioner / Chief Commissioner — a safeguard designed to prevent misuse.
- What officers may do: inspect books and documents in any form (including electronic), require access codes/passwords to inspect data on computer systems, place identification marks on books, take extracts or copies, make an inventory of cash, stock and other assets, and record statements.
- Impounding of documents. Books and documents may be impounded and retained, but only after recording reasons; retention beyond the prescribed short period requires approval of a higher authority. (Under the old Section 133A the free retention limit was 15 days excluding holidays; the 2025 Act continues a time-bound approach — confirm the exact number of days from the final rules.)
- What officers generally cannot do: in an ordinary survey they cannot remove or seize cash, stock or other valuable assets from the premises. Removal requires the stronger search-and-seizure route.
New in the 2025 Act
- Digital / virtual digital space. The section expressly extends survey powers to computer systems and information in electronic form, and can require the person to provide access codes and reasonable technical assistance — closing gaps that existed when Section 133A was drafted in the pre-digital era.
- Verification of expenditure on functions and events. Officers may verify spending on social functions, ceremonies and events (e.g., large weddings) and require persons to furnish information or record statements to trace unexplained high-value expenditure.
- TDS/TCS-focused survey. A dedicated power to enter and verify TDS/TCS compliance, though for such verification officers cannot impound books or make an inventory — it is limited to inspection.
How it interacts with other provisions
A survey often feeds into assessment and reassessment. Statements, inventories and documents gathered can support an assessment order, additions to income, or a notice for reassessment of escaped income. If the material is serious enough, it can trigger the far stronger search and seizure machinery. Amounts found unexplained can attract taxation of unexplained money/investments and, in some cases, penalty and prosecution provisions of the 2025 Act.
Practical implications for taxpayers
- Cooperate but know the limits. Allow inspection and provide access to records; but the officer cannot ordinarily take away your cash or stock in a survey.
- Statements matter. Anything you state can be used later — answer accurately and, where large sums are involved, it is wise to have your CA or counsel present.
- Keep clean, reconciled records of cash, stock, TDS/TCS and high-value personal/event expenditure, since these are the exact items officers verify.
- Get acknowledgements for any books or documents impounded, and note the reasons recorded.
In short, Section 253 modernises and consolidates India's tax-survey framework: broader reach into digital records and big-ticket expenditure, but wrapped in clearer approval and timing safeguards. It is a verification tool, not a seizure tool, and taxpayers with well-maintained books have little to fear from it.
💡 Example
Example 1 — Stock and cash verification. An income-tax officer conducts a survey at a jeweller's showroom during business hours. The officer counts physical stock worth ₹2.10 crore and cash of ₹18 lakh, but the books show stock of only ₹1.50 crore and cash of ₹6 lakh. The unexplained difference — ₹60 lakh of stock and ₹12 lakh of cash, i.e. ₹72 lakh — can be treated as unexplained income and brought to tax in the assessment. Note that the officer records an inventory and copies the books but does not carry away the stock or cash, because a survey does not permit seizure.
Example 2 — TDS survey. During a TDS-verification survey at a company, the officer finds that TDS of ₹4,00,000 was deducted from contractor payments but only ₹2,50,000 was deposited with the government. The shortfall of ₹1,50,000, plus interest for late deposit and possible penalty, follows from the survey findings. Here the officer may inspect and take copies but cannot impound the books.
A relatable story. Meena runs a busy garment shop in Jaipur. One afternoon two income-tax officers arrive, show authorisation, and begin a survey. They ask to see her sales register and the billing software, and request the login password to check digital records. Meena calls her CA, who arrives and confirms the officers may inspect everything but cannot lock up or take away her cash or stock. The stock tallies, but ₹3 lakh of counter cash is unrecorded. Meena explains it as that morning's un-billed sales; the officer records her statement and notes it for the assessment. Because her books were otherwise clean, the survey ends the same day with only a small addition — a reminder that good record-keeping turns a survey into a routine formality rather than a crisis.
| Feature | Section 253, Income-tax Act 2025 (Survey) | Old Section 133A, 1961 Act |
|---|
| Nature of action | Survey / on-the-spot verification | Survey |
| Where officer can enter | Business, professional or charitable premises; place where records are kept | Business/professional premises |
| Timing of entry | Business premises: only during open hours; other places: sunrise to sunset | Same principle |
| Digital / electronic records | Expressly covered; can demand access codes & technical help | Not expressly covered |
| Expenditure on functions/events | Specific power to verify (e.g. big weddings) | Limited express provision |
| TDS/TCS verification survey | Yes — inspection only, no impounding/inventory | Yes (133A(2A)) |
| Seize/remove cash or stock | Not permitted in a survey | Not permitted |
| Impound books/documents | Allowed with reasons; longer retention needs higher approval | Up to 15 days free; longer needs approval |
| Prior approval | Pr. DG/DG or Pr. CCIT/CCIT | Prescribed senior authority |
Related sections
Section 247 — Search and seizure powers Section 248 — Powers to requisition books of account, assets Section 252 — Power to call for information Section 254 — Power to inspect registers of companies Section 102 — Unexplained money, investments and expenditure Section 393 — TDS provisions (consolidated)
Frequently asked questions
Is a survey under Section 253 the same as an income-tax raid?
No. A survey is a lighter verification carried out mainly at your place of business during working hours, and the officer generally cannot seize your cash or stock. A raid is a search and seizure under separate, stronger provisions where assets can be seized.
Can the officer take away my cash or stock during a survey?
No. In an ordinary survey under Section 253 the officer may inspect, count, copy and make an inventory, but cannot remove or seize cash, stock or other valuable assets. Removal requires the search-and-seizure route.
Can they inspect my computer, phone or accounting software?
Yes. The 2025 Act expressly covers electronic and virtual digital records. Officers can inspect computer systems and may require you to provide access codes or passwords and reasonable technical assistance.
At what time can a survey take place?
A place of business, profession or charitable activity can be entered only during the hours it is open for that activity. Any other place can be entered only after sunrise and before sunset.
Can books and documents be impounded, and for how long?
Yes, the officer may impound books and documents after recording reasons. They can be retained for a short prescribed period, and retention beyond that requires approval of a higher authority (under the old law the free period was 15 days excluding holidays).
Do I have to sign statements recorded during a survey?
You may be asked to give and confirm a statement, which can be used later in assessment. Answer accurately; for large amounts it is advisable to have your CA or advocate present before confirming anything.
What is the old-law equivalent of Section 253?
Section 253 of the Income-tax Act, 2025 corresponds to Section 133A of the Income-tax Act, 1961, with modernised scope covering digital records and expenditure on functions and events.
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.
💬 Discussion & questions
0 comments · Ask anything about this — a Chartered Accountant or the community will reply.
Have a doubt about this (Section 253)? Ask here 👇
Free · takes 20 seconds · our CA answers. No account needed.
No comments yet — be the first to ask. 👆
EaseValue