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Rules and regulations related to income tax raid or search and seizure was first framed in the Income Tax Act, 1956 by the Income Tax Department. Here we will discuss the concept of search and seizure according to the Income Tax Act, 1961.
Here are the following officers who are authorized to issue an order for search and seizure under the Income Tax Act[1]:
Such officers are allowed to authorize any officer subordinate to him but not below the rank of Income Tax Officer to perform a search and seizure if he has reason to believe that a taxpayer has failed in complying with summons or notices sent to him by the department or if he has money in possession and that money represents wholly or partially income or property that has not been disclosed.
Income tax raid is conducted when the Income Tax officer has in possession any information through which he/she has reason to believe that:
Hence, raid is one of the crucial ways that income tax department keeps a check on black money. This is also called search and seizure. An Authorized Officer would have sufficient cause to conduct a search if he has reason to believe any of the above mentioned instances.
Here are the following powers that are given to an Authorized Officer while conducting a search and seizure operation under the Income Tax Act:
The rights of a person during raid include:
In order to avoid an event like income tax raid, one should always be complaint with the summons and notices that are sent to such person from time to time. Such person should also refrain from keeping money or property undeclared.
Read our article:How to manage Income Tax notices?
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