Section 260 Income Tax Act 2025: How Does Faceless Information Collection Work?

Section 260, titled Faceless collection of information, enables the Central Government to notify schemes for specified information-gathering and enquiry powers under the Income-tax Act, 2025. It seeks to reduce direct interaction, improve administrative efficiency and allow team-based functioning with dynamic jurisdiction.

Legal position: The Income-tax Act, 2025 came into force on 1 April 2026. Section 260 is an enabling provision: the operation and details of any faceless scheme depend on the applicable government notification. Do not assume every enquiry is automatically faceless.

Which income-tax powers can be exercised through a faceless scheme?

Section 260(1) permits a notified scheme concerning the following specified statutory functions:

Section 252: calling for information.
Section 254: collecting certain information.
Section 259: calling for information by the prescribed income-tax authority.
Section 255: inspecting registers of companies.
Section 256: exercise of specified Assessing Officer powers by certain income-tax authorities.

These cross-references define the functions that a Section 260 scheme may cover. The section does not, by itself, confer an unrestricted new search or seizure power.

Section 260(1): What is the purpose of a faceless scheme?

Section 260(1)(a): Reducing direct interface

A notified scheme may eliminate direct interaction between an income-tax authority and the assessee or another person, to the extent technologically feasible. Communications may consequently be handled through prescribed electronic processes, where the relevant scheme so provides.

Section 260(1)(b): Better use of resources

The Government may organise functions to obtain economies of scale and functional specialisation. Different units or officers may perform particular information-processing tasks according to the notified scheme.

Section 260(1)(c): Team-based powers and dynamic jurisdiction

A scheme may introduce team-based exercise of powers to call for, collect, process or utilise information, with dynamic jurisdiction. This allows work to be allocated by the scheme rather than necessarily remaining with a single geographically assigned officer.

Section 260(2): Can the Government modify the application of other provisions?

To implement a scheme under subsection (1), the Central Government may issue a notification directing that provisions of the Act do not apply, or apply with specified exceptions, modifications or adaptations. Such changes must be linked to giving effect to the scheme and must be identified in the notification. A taxpayer should examine the applicable notification before determining the precise procedure.

Section 260(3): What parliamentary scrutiny is required?

Every notification issued under subsections (1) and (2) must be laid before each House of Parliament as soon as may be after it is issued. This provides a statutory mechanism for parliamentary scrutiny of the notified framework.

Relevant statutory terms and explanations

Assessee: A person falling within the meaning assigned by the definitions provision of the Income-tax Act, 2025, including persons liable to tax or other sums under the Act in the circumstances specified there.

Prescribed income-tax authority: An authority identified under the applicable rules for a function such as Section 259 verification.

Faceless collection of information: The statutory description of the scheme-making mechanism under Section 260; the section does not prescribe a single universal digital workflow.

Dynamic jurisdiction: A method of allocating or reallocating functions under the notified scheme, rather than relying exclusively on a fixed territorial assignment.

Notification: The formal government instrument through which a scheme or directions under Section 260 are made; its terms govern the applicable procedural details.

What does Section 260 mean for taxpayers and businesses?

Example 1 - Electronic information request: A prescribed authority issues a request under Section 259. If a Section 260 scheme applies, processing and utilisation of the response may follow the workflow established by that scheme.

Example 2 - Company registers: A function concerning inspection of company registers under Section 255 may be organised through a notified team-based framework, subject to the applicable legal requirements.

Compliance checklist: Verify the statutory provision cited in the notice, the issuing authority, the response deadline, the notified scheme (if any), and the specified submission channel. Preserve the notice, supporting records, acknowledgement and proof of compliance.

How is Section 260 different from Section 245?

Section 245 concerns faceless jurisdiction of income-tax authorities. Section 260 focuses specifically on faceless collection and use of information and related functions listed in subsection (1). Their precise application depends on their respective schemes and notifications.

Corresponding provision under the Income-tax Act, 1961

Section 260 broadly corresponds to Section 135A of the Income-tax Act, 1961, which also addressed faceless collection of information. However, the wording and notification powers must be assessed under the law applicable to the relevant period; the provisions should not be treated as identical in every respect.

Frequently asked questions

Does Section 260 make every tax information request faceless?

No. Section 260 authorises the Government to notify schemes. Whether a particular request follows a faceless procedure depends on the scheme in force and its scope.

Can information be requested from a person other than the taxpayer?

The underlying provisions, including Sections 252 and 259, may authorise requests to persons other than the assessee. Section 260 provides a possible procedural framework for such functions.

Can an officer's jurisdiction change during the process?

A notified scheme may provide team-based allocation and dynamic jurisdiction, subject to its terms.

Can a Section 260 notification change procedural requirements?

Subsection (2) permits specified exceptions, modifications and adaptations for implementing the scheme. The actual notification must be examined to identify any changes.

Is Section 260 the same as the faceless assessment procedure?

No. Section 260 specifically addresses the listed information-gathering and related powers. Assessment proceedings may be governed by other provisions and schemes.

Official statutory reference

For the authoritative statutory text, refer to the Income-tax Act, 2025, as amended by the Finance Act, 2026 (Income Tax Department). Verify subsequent notifications and amendments when applying Section 260 to a specific case.

Last reviewed: 11 November 2026. This article is general legal information and not case-specific advice.