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Section 247 Income Tax Act 2025: When Can Tax Officers Search Your Property?

Section 247 regulates income-tax search and seizure, including entry into premises, examination of documents and electronic records, seizure of assets and procedural safeguards. A search is a statutory power, not an unrestricted right to inspect anyone's property.

Current law: The Income-tax Act, 2025 took effect on 1 April 2026. Section 247 broadly succeeds section 132 of the Income-tax Act, 1961. This article explains the enacted provision, not the earlier Bill's wording.

When can income-tax authorities authorise a search?

Under section 247(1), the competent authority must have information giving it reason to believe that the specified circumstances exist. These include failure to produce requested books, documents or electronic information; a belief that relevant material would not be produced if summoned; or possession of assets or asset-related information representing wholly or partly undisclosed income or property. The relevant statutory notices include those under sections 246(1) and 268(1) of the 2025 Act and specified provisions of the 1961 Act.

On that basis, the approving authority may authorise specified income-tax officers to conduct the search. Mere curiosity, a routine inquiry or the existence of a tax dispute alone is not the statutory test.

What can an authorised officer do under section 247(1)?

  • Enter and search: buildings, places, vessels, vehicles or aircraft where relevant material is suspected to be kept.
  • Inspect electronic information: require reasonable technical assistance, including access codes, to examine relevant electronic records or computer systems.
  • Gain entry or access: break open locks or override computer-system access codes where the statutory conditions apply.
  • Search persons: where there is reason to suspect concealment of relevant material or assets.
  • Identify and copy: mark books or documents and make extracts or copies, including from computer systems.
  • Inventory: record assets and business stock-in-trade found during the search.
  • Seize: relevant books, documents, computer systems or assets, excluding stock-in-trade of the business from seizure under this clause.
Digital access: Section 247 expressly addresses computer systems and access codes. This is not a general permission for tax officers to access all online accounts without a lawfully authorised search. In a February 2026 parliamentary reply, the Government stated that the provision does not mention artificial intelligence and does not assign new powers compared with the earlier search regime.

Section 247(2) to (12): procedure and safeguards

Subsection (2): Urgent action outside personal jurisdiction

A specified senior income-tax authority may exercise search powers concerning premises within its territorial jurisdiction even without jurisdiction over the person, if delay in obtaining authorisation from the authority having jurisdiction could prejudice revenue interests and the statutory conditions are met.

Subsection (3): Search at an additional location

A specified senior authority may authorise the search officer to search another location not named in the original authorisation where information gives reason to suspect relevant material is kept there.

Subsection (4): Restraint orders and deemed seizure

Where physical seizure of a valuable article or thing (other than business stock-in-trade) is impracticable because of its volume, weight, physical characteristics or dangerous nature, an order restricting its removal or dealing may constitute deemed seizure. A separate restraint power applies where seizure is impracticable for other reasons; that order generally cannot remain in force for more than 60 days and is not deemed seizure.

Subsection (5): Assistance during search

The authorised officer may requisition police, Central Government officers and prescribed approved persons or entities to assist with a search.

Subsection (6): Examination on oath

Persons present, searched or controlling relevant material may be examined on oath. Their statements may be used in evidence in proceedings under the 1961 or 2025 Act. Questions can extend to matters relevant to the connected investigation.

Subsection (7): Statutory presumptions

The law permits presumptions regarding possession or ownership of material, truth of contents, handwriting, execution or attestation of documents, and electronic exchanges. These are statutory evidentiary presumptions, not an automatic final determination of tax liability.

Subsection (8): Provisional attachment

An authorised officer may provisionally attach property belonging to the assessee during a search or within 60 days after execution of the last search authorisation, subject to recorded reasons and specified prior approval. Attachment remains valid for six months from the end of the month in which the order is made.

Subsection (9): Valuation

A valuation reference may be made during the search or within 60 days after execution of the last authorisation. The valuer must submit the estimate within 60 days of receiving the reference.

Subsection (10): Criminal procedure safeguards

The provisions of the Bharatiya Nagarik Suraksha Sanhita, 2023 relating to searches and seizures apply so far as may be.

Subsection (11): Rules

The Central Board of Direct Taxes may make rules governing search procedure, entry where access is unavailable and safe custody of seized materials.

Subsection (12): Meaning of proceeding

For this section, a proceeding includes proceedings for any year under the 1961 or 2025 Act that are pending, completed or may be commenced after the search authorisation, as specified in the provision.

Important statutory terms

Competent authority: The authority designated under the Act to form the requisite belief for a search. Its role must be distinguished from the approving authority and the authorised officer.
Approving authority: The authority empowered by section 247 to issue the requisite search authorisation.
Authorised officer: An income-tax officer authorised under section 247(1) to exercise the specified search powers.
Undisclosed income or property: For section 247(1), assets representing wholly or partly income or property not disclosed, or that would not be disclosed, under the specified tax laws.
Computer system and electronic information: Digital systems and records covered by the statutory search powers; their scope must be read with the applicable definitions and the exact search authorisation.
Stock-in-trade: Goods held as trading inventory; section 247(1)(vii) excludes business stock-in-trade from seizure under that clause, although an inventory may be made.

What should a taxpayer do during a search?

  1. Ask to inspect the search authorisation and identify the authorised officers.
  2. Cooperate with lawful requests while keeping an accurate record of documents, devices and assets examined or taken.
  3. Request copies of inventories, restraint orders, seizure records and statements as applicable.
  4. Do not destroy, conceal, alter or obstruct access to material covered by a lawful authorisation.
  5. Seek professional advice promptly about the scope of the authorisation, digital evidence, recorded statements and available remedies.

These are practical precautions, not an exhaustive statement of procedural rights. The precise protections depend on the Act, applicable rules and circumstances of the search.

Frequently asked questions

Can income-tax officers search a home or business?

Yes, if a search is duly authorised on the grounds and in the manner prescribed by section 247.

Can officers demand passwords or access codes?

Section 247(1) permits reasonable technical assistance including access codes, and allows overriding computer-system access codes in specified circumstances during an authorised search.

Can business inventory be seized?

Stock-in-trade is excluded from seizure under section 247(1)(vii), although officers may inventory it.

How long may a provisional attachment continue?

Under section 247(8), it is valid for six months from the end of the month in which the attachment order is made.

Does section 247 authorise unrestricted AI surveillance?

No. The Government clarified in Parliament that section 247 does not mention artificial intelligence and does not create new powers of that kind.

Official legal sources

Income-tax Act 2025 - Official PDFLok Sabha reply on Section 247

Updated: 11 November 2026. This explanatory article is for general legal information and does not replace the enacted text or advice on individual facts.