Income tax ‘raids’: What is the difference between surveys and searches?


On Wednesday, the Department (I-T Deptt) conducted “searches” at over 100 locations across several states like Maharashtra, Delhi, Haryana, and . It also conducted “surveys” at various locations across .

According to tax officials, the surveys were conducted due to some alleged irregularities in funding these bodies. The searches, however, were conducted as an action against some unrecognised but registered political parties.

What is a survey?

Tax authorities conduct surveys to unearth hidden or undisclosed income and property. Here, the main focus is the collection of information.

It is also ascertained in a survey if a person or a business has properly maintained its books of accounts or not.

It is guided by Section 133A of the Act, 1961. It was inserted in 1964. Some amendments were made to the section through the Finance Act, 2002.

What is a search?

Searches are thorough inspections of buildings, places of business, and other places to find hidden income or wealth in tax evasion cases. The authorities are also given the power to seize the documents, assets, bullion etc., which have been hidden from the authorities. That is why they are also called “search and seizure” operations.

In common parlance, it is called a “raid”, but no such word exists in the I-T Act of 1961. Searches are conducted under Section 132 of the I-T Act.

How are surveys different from searches?

Surveys are a milder form of search operations. In surveys, the main purpose is to find information. While in search and seizure, the main purpose is to find unaccounted wealth and records of such transactions.

The surveys can only be conducted during the hours at which the business conducts its operations. On the other hand, searches can be done at any hour.

Surveys can only take place at the place from where the business or profession is carried out. In search operations, there is no such restriction.

Before the of 2002, the authorities had no power to seize any asset during the surveys. However, after the amendment, the authorities can impound the books and documents surveyed but only after recording the reasons for doing so. Also, they cannot be retained for over ten days without the permission of the Chief Commissioner, Commissioner, Director General or Director.

In search and seizure operations, the authorities can seize any document or asset except the stock-in-business. They can break any locks if they are not provided with the keys. They can take the help of police officers or any other central government officer for the whole process.


Source link

Comments are closed.