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Section 255 Income Tax Act 2025: Can Tax Officers Inspect Company Registers?

Section 255 empowers specified income-tax authorities to inspect company registers recording members, debenture holders and mortgagees, and to obtain copies where necessary. The provision also permits inspection by subordinate personnel when authorised in writing.

Current law: Section 255 forms part of Chapter XIV (Tax Administration) of the Income-tax Act, 2025, effective from 1 April 2026. The provision corresponds to Section 134 of the Income-tax Act, 1961. This guide explains the statutory scope; it does not expand the power to all company records.

What does Section 255 permit?

The section authorises inspection of specified company registers and, where necessary, taking copies of a register or individual entries. It is a focused information-gathering power. Its wording does not, by itself, confer a general right to search company premises, seize assets or examine every accounting record.

The power extends to inspecting the relevant registers and taking copies directly or arranging for copies to be taken. The necessity of copying should be considered in the context of the inquiry.

Which income-tax authorities can inspect the registers?

Section 255 expressly identifies the following authorities:

  • Assessing Officer;
  • Assessment unit;
  • Verification unit;
  • Joint Commissioner;
  • Joint Commissioner (Appeals); and
  • Commissioner (Appeals).

A person subordinate to one of the specified officers or authorities may also exercise this inspection power, but must be authorised in writing by that officer or authority for this purpose. The written-authorisation requirement should not be confused with an independent power available to every subordinate employee.

Which company registers may be inspected?

Register of members: The company's statutory record identifying its members or shareholders and relevant particulars of their holdings, maintained under applicable company law.
Register of debenture holders: The record identifying persons holding the company's debentures. Debentures are instruments evidencing a company's debt, subject to the relevant statutory and contractual terms.
Register of mortgagees: The register contemplated by Section 255 recording mortgagees. The scope of any particular record must be evaluated by reference to applicable company law and the company's actual registers.

Inspection can concern the whole relevant register or a particular entry. Section 255 does not expressly extend its inspection power to unrelated internal correspondence, all books of account, or other records merely because they are held by the company.

Relevant statutory terms

Assessing Officer: An income-tax authority exercising assessment functions within the jurisdiction and powers assigned under the Income-tax Act, 2025.
Assessment unit and verification unit: Functional units recognised within the income-tax administration for assessment and verification activities, as applicable under the Act and relevant schemes.
Written authorisation: A documented permission from a specified officer or authority allowing a subordinate person to inspect registers under Section 255.
Inspection and copying: Examination of the specified register, with copying of the register or entries when necessary. Inspection does not automatically imply seizure or removal of original records.

How does Section 255 work in practice?

Example 1: Verification of shareholding

During a tax inquiry, an Assessing Officer may inspect a company's register of members to check entries concerning the ownership of shares. Where necessary, the officer may obtain copies of relevant entries.

Example 2: Inspection by a subordinate official

A subordinate officer attends to inspect a company's debenture-holder register. The company may request to see the written authorisation issued by the competent officer or authority under Section 255.

Example 3: Request for unrelated records

An official asks for every internal email and the company's entire accounting database solely by relying on Section 255. The provision itself is limited to the specified registers. Any wider demand must be supported by a separate applicable statutory power.

Practical compliance: Companies should maintain the relevant registers accurately, verify the identity and authority of the inspecting official, preserve a record of inspected entries and copies supplied, and seek professional advice where the scope of a request is disputed.

How does Section 255 compare with the Income-tax Act, 1961?

Section 255 of the 2025 Act broadly corresponds to Section 134 of the Income-tax Act, 1961, which likewise addressed inspection of company registers. The 2025 provision expressly includes assessment and verification units in its list of authorities. The Parliamentary Select Committee described the recasting as a textual simplification retaining the earlier legislative intent.

For wider powers, read Section 252 (Power to Call for Information), Section 253 (Survey), and Section 254 (Collection of Information). Each provision has its own conditions and limits.

Frequently asked questions

Can income-tax officers inspect a company's shareholder register?

Yes. Section 255 permits specified income-tax authorities to inspect the register of members and take copies of relevant entries where necessary.

Can a subordinate tax officer inspect registers without written authorisation?

No. A subordinate person relying on Section 255 must have written authorisation from a specified officer or authority.

Can tax officers copy the register?

Yes. Section 255 allows copies of the specified registers or entries to be taken or arranged when necessary.

Does Section 255 permit seizure of company records?

No seizure power is stated in Section 255 itself. Other statutory provisions may separately confer powers subject to their own conditions.

What is the corresponding provision under the 1961 Act?

Section 134 of the Income-tax Act, 1961 addressed the same subject.

Official statutory references

Official Section 255 textIncome-tax Act 2025 - Official PDFGazette of India - Enacted Act

Last reviewed: 11 November 2026. This article is general legal information and should be read with the applicable Act, rules and notifications.