Rule 149 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 149 of the Income-tax Rules, 2026 lets a Principal Chief Commissioner approve persons whose services may be requisitioned or to whom a valuation reference may be made under section 247, on a Form No. 85 application.
Who approves under rule 149, and what
Sub-rule (1): every Principal Chief Commissioner, Chief Commissioner, Principal Director General or Director General may approve:
- any person or entity whose services may be requisitioned for the purposes of section 247(5)(b); or
- the Valuation Officer, the person registered under section 514, or any person or entity or registered valuer, to whom reference may be made for the purposes of section 247(9).
Approval may be granted on three triggers — on an application by the person, entity or registered valuer; on a reference by a Joint Director, Joint Commissioner, Additional Director, Additional Commissioner, Director, Commissioner, Principal Director or Principal Commissioner; or on his own motion. The 1962 parallel is rule 13.
What rule 149 creates is a standing panel of approved service providers and valuers, from which the authorised officer draws when a search or requisition needs outside help. Because approval can be initiated by the person himself, by a departmental officer, or by the approving authority on his own motion, a valuer who wants to be on the panel need not wait to be nominated — the Form No. 85 route is open to him directly.
The rule 149 application and the decision
| Step | Provision |
|---|---|
| Form | Sub-rule (3): the application shall be made in Form No. 85 |
| Decision period | Sub-rule (4): disposed of within six months from the end of the month in which the application is made, by granting approval or rejecting it |
| Identifier | Sub-rule (5): on grant, the authority may issue a Designated Approval Number, which sub-rule (8) defines as a number having alphanumeric characters |
Sub-rule (2): the authorised officer referred to in section 247(5) or (9) may requisition the services of, or make a reference to, one or more of the persons approved under sub-rule (1). The plural matters — a single matter can draw on several approved persons at once.
Using someone outside the panel
Sub-rule (6): where the authorised officer considers it necessary or expedient to do so, he may requisition the services of or make a reference to a person, entity or registered valuer who is not approved under sub-rule (1) — after recording reasons, and within a period of thirty days of such requisition, obtain approval of the Principal Chief Commissioner, Chief Commissioner, Principal Director General or Director General.
Sub-rule (6) is an ex post mechanism, and it has two limbs that operate at different times. The reasons must be recorded before the unapproved person is engaged; the approval follows within thirty days of the requisition. It exists because a search or requisition cannot always wait for a panel to be assembled — but the thirty-day window means the engagement is not left indefinitely unratified.
Sub-rule (7) defines "registered valuer" broadly: any valuer registered by or under any law in force — not confined to registration under the Act.
How the two limbs of rule 149 differ
| Point | Section 247(5)(b) — services | Section 247(9) — reference |
|---|---|---|
| Who may be approved | Any person or entity | The Valuation Officer, a person registered under section 514, or any person, entity or registered valuer |
| Nature | Services requisitioned | A reference made |
| Typical use | Technical or operational assistance during the exercise of powers | Valuation of assets found or requisitioned |
Rule 150, which follows, deals with the valuation itself under section 247(9); rule 149 is confined to who may be used and how they are approved.
Worked example
| Facts | Position under rule 149 |
|---|---|
| Registered valuer applies to be on the panel on 8 March | Form No. 85; decision due within six months from 31 March |
| Approval granted | Designated Approval Number may be issued |
| Commissioner nominates a forensic data firm | Approval may be granted on that reference |
| Authorised officer engages two approved persons on one matter | Permitted — sub-rule (2) says one or more |
| Urgent need for an unapproved specialist | Engage after recording reasons; obtain approval within thirty days |
| Approval not obtained within thirty days | The sub-rule (6) condition is not satisfied |
| Valuer registered under a State law | Within the sub-rule (7) definition |
Compliance checklist
- Apply in Form No. 85 to the Principal Chief Commissioner, Chief Commissioner, Principal Director General or Director General.
- Expect a decision within six months of the end of the month of application.
- Record the Designated Approval Number where issued.
- Check whether the engagement is under section 247(5)(b) or section 247(9) — the eligible pool differs.
- Where an unapproved person is engaged, record reasons first.
- Obtain the ratifying approval within thirty days of the requisition.
- Note that "registered valuer" covers registration under any law in force.
Common mistakes
- Engaging an unapproved person without recording reasons.
- Letting the thirty-day ratification window lapse.
- Assuming only valuers registered under the Act qualify.
- Waiting for a departmental nomination when a direct application is available.
- Confusing the section 247(5) and 247(9) pools of eligible persons.