Income Tax Act

Official PDF pages 336–340

SOURCE PDF PAGE 336
( b )   such officer, authority or body performing functions under any other
law, if in the opinion of the Central Government it is necessary so to do
in the public interest, as it may specify by notification in this behalf,
any such information received or obtained by any income-tax authority in the
performance of its functions under this Act, as may, in the opinion of the Board
or other income-tax authority, be necessary for the purpose of enabling the officer,
authority or body, to perform his or its functions under that law.
(2) The Principal Chief Commissioner or Chief Commissioner or Principal Com -
missioner or Commissioner may furnish or cause to be furnished to a person, the
information relating to any assessee received or obtained by any income-tax authority
in the performance of his functions under this Act,––
( a )   on an application made by such person to the aforesaid authorities in
the prescribed form and on being satisfied that it is in the public interest
so to do; and
( b )   the decision of the Principal Chief Commissioner or Chief Commissioner
or Principal Commissioner or Commissioner in this behalf, shall be final
and shall not be called in question in any court of law.
(3) Irrespective of anything contained in sub-section (1) or (2) or any other law
in force, the Central Government may, having regard to the practices and usages,
customary or any other relevant factors, by notification, direct that no information
or document shall be furnished or produced by a public servant in respect of such
matters relating to such class of assessees except to such authorities as specified
in that notification.
Power to call for information by prescribed income-tax authority.
259 .   (1) For the purposes of verification of information in the possession of the
prescribed   income-tax   authority,   such   authority   may   issue   a   notice
requiring any person to furnish any information as may be useful for, or relevant
to, any inquiry or proceeding under this Act in such form and manner and within
such time, as specified in such notice.
(2) The prescribed income-tax authority may process and utilise such information
and document received by him as per the scheme notified under section 260.
(3) For the purposes of this section, the term “proceeding” shall have the meaning
assigned to it in section 253.
Faceless collection of information.
260.   (1) The Central Government may make a scheme, by notification, for the
purposes of calling for information under section 252, collecting certain in -
formation under section 254, or calling for information by prescribed income-tax
authority under section 259, or exercise of power to inspect register of companies
under section 255, or exercise of power of Assessing Officer under section 256 so
as to impart greater efficiency, transparency and accountability by—
( a )   eliminating the interface between the income-tax authority and the
assessee or any other person to the extent technologically feasible;

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( b )   optimising utilisation of the resources through economies of scale and
functional specialisation;
( c )   introducing a team-based exercise of powers, including to call for, or
collect, or process, or utilise, the information, with dynamic jurisdiction.
(2) The Central Government may, for the purpose of giving effect to this scheme made
under sub-section (1), by notification, direct that any of the provisions of this Act
shall not apply or shall apply with such exceptions, modifications and adaptations
as specified in the notification.
(3) Every notification issued under sub-sections (1) and (2) shall, as soon as may be
after the notification is issued, be laid before each House of Parliament.
Interpretation.
261 . For the purposes of this Part,—
( a )   “approving authority” means––
( i )   the Principal Director General or the Director General; or
( ii )   the Principal Chief Commissioner or the Chief Commissioner; or
( iii )   the Principal Director or the Director; or
( iv )   the Principal Commissioner or the Commissioner;
( b )   “asset” includes any money, bullion, jewellery, virtual digital asset or
other valuable article or thing, held in physical or virtual form;
( c )   “authorised officer” means––
( i )   the Joint Director or the Additional Director; or
( ii )   the Joint Commissioner or the Additional Commissioner; or
( iii )   the Assistant Director or the Deputy Director; or
( iv )   the Assistant Commissioner or the Deputy Commissioner; or
( v )   the Income-tax Officer or the Tax Recovery Officer;
( d )   “competent authority” means––
( i )   the Principal Director General or the Director General; or
( ii )   the Principal Chief Commissioner or the Chief Commissioner;
or
( iii )   the Principal Director or the Director; or
( iv )   the Principal Commissioner or the Commissioner; or
( v )   the Joint Director or the Additional Director; or
( vi )   the Joint Commissioner or the Additional Commissioner;
( e )   “computer system” means computers, computer networks, computer
resources, communication devices, digital or electronic data storage
devices, used on stand-alone mode or part of a computer system, linked
through a network, or utilised through intermediaries for information
creation or processing or storage or exchange, and includes the remote
server or cloud server or virtual digital space;
( f )   “date on which the last of the authorisations for search was executed”
means—
( i )   in the case of search, the date of conclusion of search as recorded
in the last panchnama drawn in relation to any person in whose
case the warrant of authorisation has been issued; or

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( ii )   in the case of requisition under section 248, the date of actual receipt
of the books of account or other documents or computer system
or assets by the requisitioning officer;
( g )   “electronic form” shall have the same meaning as provided in section
2(1)( r ) of the Information Technology Act, 2000 (21 of 2000);
( h )   “electronic record” shall have the same meaning as provided in section
2(1)( t ) of the Information Technology Act, 2000 (21 of 2000);
( i )   “material seized or requisitioned” means books of account or other doc -
uments or computer systems, and extracts seized from a person during
the course of search under section 247 or requisitioned under section
248, and includes seizure of backup taken from any specialised programs
like tally software, excel sheets, word files and all electronic records
including data and information in electronic form or on the computer
system, containing figures and any other relevant noting, and shall be
construed to mean as books of account maintained by the said person;
( j )   “virtual digital space” means an environment, area or realm, that is
constructed and experienced through computer technology and not the
physical, tangible world which encompasses any digital realm that allows
users to interact, communicate and perform activities using computer
systems, computer networks, computer resources, communication
devices, cyberspace, internet, worldwide web and emerging technologies,
using data and information in the electronic form for creation or storage
or exchange and includes––
( i )   email servers;
( ii )   social media account;
( iii )   online investment account, trading account, banking account, etc.;
( iv )   any website used for storing details of ownership of any asset;
( v )   remote server or cloud servers;
( vi )   digital application platforms; and
( vii )   any other space of similar nature.
CHAPTER XV
RETURN OF INCOME
A.—Allotment of Permanent Account Number
Permanent Account Number.
262 .   (1) Every person who has not been allotted a Permanent Account Number
shall, within such time as may be prescribed, apply to the Assessing Officer
for its allotment if he fulfils any of the following conditions:—
( a )   his total income or the total income of any other person for which he is
assessable under this Act during any tax year exceeded the maximum
amount not chargeable to income-tax; or
( b )   he is carrying on any business or profession whose total sales, turnover
or gross receipts are or is likely to exceed   `   5,00,000 in any tax year; or

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( c )   he is required to furnish a return of income under section 263 for any
tax year; or
( d )   he is a resident, other than an individual, which enters into a financial
transaction aggregating to   `   2,50,000 or more in a tax year; or
( e )   he is the managing director, director, partner, trustee, author, founder,
karta , chief executive officer, principal officer or office bearer of the per -
son referred to in clause ( d ) or any person competent to act on behalf of
the person referred to in clause ( d ); or
( f )   he intends to enter into such transaction as may be prescribed
29a  
by the
Board in the interest of revenue.
(2) Any person, not covered under sub-section (1) may apply to the Assessing Officer
for the allotment of a Permanent Account Number after which the Assessing Officer
shall allot a Permanent Account Number to such person.
(3) Every person shall quote Permanent Account Number in all his returns to, or
correspondence with, any income-tax authority and in all challans for the payment
of any sum due under this Act.
(4) Every person shall intimate the Assessing Officer of any change in his address
or in the name and nature of his business on the basis of which the Permanent
Account Number was allotted to him.
(5) Every person who is eligible to obtain Aadhaar number shall quote such number
in the application form for allotment of Permanent Account Number and in the
return of income.
(6)( a ) For the cases other than sub-section (5), every person who has been allotted
Permanent Account Number and who is eligible to obtain Aadhaar number, shall
intimate his Aadhaar number to the prescribed income-tax authority in such form
and manner, as may be prescribed;
( b ) if a person fails to intimate his Aadhaar number as per clause ( a ), the Permanent
Account Number allotted to that person shall be made inoperative in such manner
as may be prescribed.
(7) Every person who is required to furnish or intimate or quote his Permanent
Account Number under this Act, and who—
( a )   has not been allotted a Permanent Account Number but possesses the
Aadhaar number, may furnish or intimate or quote his Aadhaar number   in
lieu   of the Permanent Account Number, and such person shall be allotted
a Permanent Account Number in the manner, as may be prescribed;
( b )   has been allotted a Permanent Account Number, and who has intimated
his Aadhaar number as per sub-section (6) may furnish or intimate or
quote his Aadhaar number   in lieu   of the Permanent Account Number.
(8) A person who has already been allotted a Permanent Account Number cannot
apply, obtain or possess another Permanent Account Number.
(9)( a ) Every person entering into such transaction, as may be prescribed, shall quote
his Permanent Account Number or Aadhaar number, in the documents pertaining
to such transactions and also authenticate such Permanent Account Number or
Aadhaar number, in the manner, as may be prescribed;
( b ) every person receiving any document relating to the transactions referred to in
clause ( a ), shall ensure that Permanent Account Number or Aadhaar number, has
been duly quoted in such document and that such Permanent Account Number or
Aadhaar number is authenticated in such manner, as may be prescribed.

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(10) The Board may make rules providing for—
( a )   the form, manner and time in which an application may be made for
the allotment of Permanent Account Number and the particulars which
such application shall contain;
( b )   class or classes of persons who shall be required to apply for allotment
of Permanent Account Number;
( c )   categories of documents  
43
[ pertaining to, business or profession, or other
transactions, ]   in which Permanent Account Number shall be quoted by
every person;
( d )   the form and manner in which the person who has not been allotted a
Permanent Account Number shall make his declaration;
( e )   manner of authentication of Permanent Account Number or Aadhaar
number;
( f )   class or classes of persons to whom the provisions of this section shall
not apply having regard to the transactions or the circumstances.
(11)( a ) The Central Government may, by notification, specify any class or classes
of persons who shall apply to the Assessing Officer for the allotment of Permanent
Account Number within such time as mentioned in such notification;
( b ) the class or classes of persons in clause ( a ) may include such persons––
( i )   by whom tax is payable under this Act; or
( ii )   by whom any tax or duty is payable under any other law in force; or
( iii )   being importers and exporters, even when no tax is payable by them.
(12) The provisions of sub-sections (5) and (6) shall not apply to such person   or
class or classes of persons or any State or part of any State, as may be notified by
the Central Government.
(13) For the purposes of this section,—
( a )   “Aadhaar number” shall have the same meaning as assigned to it in
section 2( a ) of the Aadhaar (Targeted Delivery of Financial and Other
Subsidies, Benefits and Services) Act, 2016 (18 of 2016);
( b )   “Assessing Officer” includes an income-tax authority who is assigned the
duty of allotting Permanent Account Number;
( c )   “authentication” means the process by which the Permanent Account
Number or Aadhaar number along with demographic information or
biometric information of an individual is submitted to the income-tax
authority or such other authority or agency as may be prescribed for its
verification and such authority or agency verifies the correctness, or the
lack thereof, on the basis of information available with it.
B.—Filing of return of income
Return of income.
263 .   (1)( a ) Every person as mentioned below shall, for a tax year, on or before the
due date, furnish a return of his income or the income of any other person in
respect of which he is assessable during the said tax year:—
43.   Substituted for “pertaining to business or profession” by the Finance Act, 2026, w.e.f.   1-4-2026 .