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Section 248 Income Tax Act 2025: When Can Tax Authorities Requisition Assets?

Section 248, titled Powers to requisition, allows an authorised income-tax officer to obtain assets, books of account, documents and computer systems already in the custody of another authority under a different law. It does not confer an unrestricted power to demand property from any person.

Applicable law: Income-tax Act, 2025 (effective 1 April 2026), read with Rule 151 of the Income-tax Rules, 2026. The corresponding provision in the Income-tax Act, 1961 is Section 132A. Check the applicable law and transitional provisions for earlier proceedings.

What does Section 248 provide?

The approving authority must possess information giving it reason to believe that one of the statutory grounds exists. It may then authorise a specified income-tax officer to requisition material or assets held by another officer or authority under another law. Requisition is different from a direct search of a taxpayer's premises under Section 247.

Section 248(1): When can a requisition be authorised?

Clause (a): Non-production despite summons or notice

The power may be exercised where a person failed to produce books, documents or electronic information required by a summons or notice under the specified provisions of the 1961 or 2025 Act, and those records or the computer system containing the information are in custody of an authority under another law.

Clause (b): Likely non-production of relevant records

The approving authority may act where records or electronic information are useful or relevant to tax proceedings, and there is reason to believe that the person concerned would not produce them when returned by the other authority. The statutory test is not satisfied merely because records might be interesting to investigators.

Clause (c): Assets representing undisclosed income or property

Assets in another authority's custody may be requisitioned where there is reason to believe they represent, wholly or partly, income or property that has not been or would not be disclosed for income-tax purposes.

On satisfying one of these grounds, the approving authority may authorise a Joint Director, Joint Commissioner, Assistant Director, Assistant Commissioner or Income-tax Officer to require delivery of the specified records, computer system or assets. The officer receiving that authority is referred to as the requisitioning officer.

Example: If another enforcement agency has lawfully taken custody of financial records and the statutory conditions under clause (a) or (b) are met, the tax authority may seek those records through the prescribed requisition procedure. Custody by another agency alone does not automatically establish the required grounds.

Section 248(2): When must the other authority deliver the material?

After a valid requisition, the holding officer or authority must deliver the specified items either immediately or when that authority considers that continued custody is no longer necessary. Section 248 does not automatically override the other authority's need to retain material for its own lawful proceedings.

Section 248(3): What happens after delivery?

Specified provisions governing seized material apply, so far as applicable, to the requisitioned items as though seized under Section 247. The cross-references are Section 247(4)(b) and 247(7) to (11), Section 250 and Section 251. In applying those provisions, the expression 'authorised officer' is read as 'requisitioning officer'. These rules govern consequential handling, application and retention, subject to the precise statutory conditions.

Rule 151 of the Income-tax Rules, 2026: What procedure applies?

Rule 151 provides procedural requirements for requisitions under Section 248, including the following:

Authorisation is made in Form No. 86, in writing, with the issuing officer's signature and seal.
The requisitioning officer issues a written requisition to the officer or authority holding the material, accompanied by the authorisation.
A copy of the requisition and authorisation is forwarded to the person concerned as required by the rule.
The delivering authority prepares a list of items delivered, with prescribed packaging, identification and sealing procedures where applicable.

The full rule should be consulted for the detailed requirements concerning inventory, signatures, sealing and delivery records.

Relevant statutory terms and concepts

Approving authority: The competent authority empowered under the Act to form the required belief and authorise a requisition. The precise designation must be determined from the Act's definitions and applicable authorisations.

Requisitioning officer: An income-tax officer within the ranks expressly listed in Section 248(1), authorised to obtain specified material from another authority.

Reason to believe: A statutory threshold requiring a belief founded on information possessed by the approving authority, rather than a mere unsupported suspicion.

Computer system and electronic information: Section 248 expressly covers information in electronic form and computer systems containing such information, in addition to physical books and documents.

Assets: Property already held by another officer or authority that may be requisitioned on satisfaction of the conditions in Section 248(1)(c).

Practical considerations for affected persons

Keep copies of any notices, authorisation and inventory supplied; identify the original authority holding the items; check whether the requisition relates to the specified records or assets; and document ownership and the source of funds where relevant. Questions concerning legality, retention or return of property depend on the particular facts and applicable statutory remedies.

Frequently asked questions

Can the Income Tax Department requisition cash seized by police?

Potentially yes, if the cash is in lawful custody under another law and the approving authority has reason to believe the conditions in Section 248(1)(c) are met. Requisition is not automatic merely because police hold cash.

Does Section 248 allow the Department to search a home?

No. Section 248 concerns requisition from another authority. Search and seizure powers are separately addressed under Section 247.

Can electronic records and computers be requisitioned?

Yes. The section expressly refers to electronic information and computer systems containing the relevant information, subject to the specified grounds.

Must the holding authority hand over the assets immediately?

Section 248(2) permits delivery forthwith or when the holding authority considers that it no longer needs to retain the material.

Which form is used to authorise requisition?

Rule 151 of the Income-tax Rules, 2026 prescribes Form No. 86 for the written authorisation.

Official legal references

Income-tax Act, 2025 - official consolidated text Income-tax Rules, 2026 - Rule 151

Updated: 11 November 2026. This article provides general legal information and is not a substitute for advice on a specific case.