Sections 18-20 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.
These three sections name the four authorities that run the Act, give them the powers of a civil court on listed matters, and list the officers who must assist them. If you receive a summons or a request for documents under the Act, section 19 is the section that explains what the officer can demand and what you must do.
As per the consolidated text consulted, the authorities are the Initiating Officer, the Approving Authority, the Administrator and the Adjudicating Authority (section 18). They have the powers of a civil court on discovery and inspection, attendance and examination on oath, production of books and documents, commissions, evidence on affidavits and any other prescribed matter (section 19). A person summoned must attend, state the truth and produce documents. Section 20 lists the officers who shall assist the authorities.
How these sections came in
Sections 18 to 20 sit in Chapter III (Authorities), inserted by the Benami Transactions (Prohibition) Amendment Act, 2016 with the rest of sections 7 to 55 of the principal Act. The words are checked against the Gazette of India copy of that Act (assent 10 August 2016). The 2016 changes were brought into force by notification; the date is not in the sources consulted.
If a summons has reached you, or an officer has asked for documents, take advice before you answer. Our legal dispute resolution team can help you read the notice against section 19 and plan the reply.
Who the officers are: section 2 and section 18
Section 2 defines the officers by rank, and section 18(1) lists them as "the authorities for the purposes of this Act".
| Authority | Section 2 clause | Defined as |
|---|---|---|
| Initiating Officer | (19) | An Assistant Commissioner or a Deputy Commissioner as defined in clauses (9A) and (19A) respectively of section 2 of the Income-tax Act, 1961 |
| Approving Authority | (4) | An Additional Commissioner or a Joint Commissioner as defined in clauses (1C) and (28C) respectively of section 2 of the Income-tax Act, 1961 |
| Administrator | (2) | An Income-tax Officer as defined in clause (25) of section 2 of the Income-tax Act, 1961 |
| Adjudicating Authority | (1) | The Adjudicating Authority appointed under section 7 |
Section 18(2) says the authorities "shall exercise all or any of the powers and perform all or any of the functions conferred on, or, assigned, as the case may be, to it under this Act or in accordance with such rules as may be prescribed". Note the printing: the words "conferred on, or, assigned, as the case may be, to it" carry stray commas. This article reads them in their plain sense and does not correct the text. Rules are not in the sources consulted. The Income-tax Act references are quoted as printed; check the current income-tax law for the corresponding provisions. For the Adjudicating Authority, see our article on sections 7 to 11.
Section 19(1): the powers of a civil court
The authorities "shall, for the purposes of this Act, have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908, while trying a suit in respect of the following matters":
- (a) discovery and inspection;
- (b) enforcing the attendance of any person, including any official of a banking company or a public financial institution or any other intermediary or reporting entity, and examining him on oath;
- (c) compelling the production of books of account and other documents;
- (d) issuing commissions;
- (e) receiving evidence on affidavits; and
- (f) any other matter which may be prescribed.
The list is of matters, and the powers are those of a civil court "while trying a suit" in respect of those matters only. Clause (f) allows more matters to be added by rules.
Section 19(2): duties of the person summoned
"All the persons summoned under sub-section (1) shall be bound to attend in person or through authorised agents, as any authority under this Act may direct, and shall be bound to state the truth upon any subject respecting which they are examined or make statements, and produce such documents as may be required."
So a summoned person must (i) attend in person or through authorised agents, as the authority directs, (ii) state the truth on any subject on which he is examined or makes statements, and (iii) produce the documents required. The authority, not the person, decides whether attendance should be in person or through an agent.
Section 19(3): a judicial proceeding
Every proceeding under sub-section (1) or (2) is "deemed to be a judicial proceeding within the meaning of section 193 and section 228 of the Indian Penal Code". The Act names two sections of that Code as printed. This article names nothing further and states no penalty; check the current penal law for the corresponding provisions. The reference signals that statements made in these proceedings are to be taken seriously.
Section 19(4): help from police and officers
Any authority may "requisition the service of any police officer or of any officer of the Central Government or State Government or of both" to assist for the purposes in sub-section (1), and "it shall be the duty of every such officer to comply with the requisition or direction".
Section 19(5) and the Explanation: "reporting entity" and "intermediary"
Section 19(5) says that, for this section, "reporting entity" means "any intermediary or any authority or of the Central or the State Government or any other person as may be notified in this behalf".
Printing slip. The words "any authority or of the Central or the State Government" look incomplete; some words seem to be missing. The gazette prints the same. The sentence is quoted as printed and this article does not fill the gap.
The Explanation says "intermediary" has the same meaning as in clause (n) of sub-section (1) of section 2 of the Prevention of Money-Laundering Act, 2002. For that Act's own definition, see our article on the reporting entity, intermediary and related terms under that Act; check its current text.
Section 20: officers who shall assist
"The following officers shall assist the authorities in the enforcement of this Act":
| Clause | Officers |
|---|---|
| (a) | Income-tax authorities appointed under sub-section (1) of section 117 of the Income-tax Act, 1961 |
| (b) | Officers of the Customs and Central Excise Departments |
| (c) | Officers appointed under sub-section (1) of section 5 of the Narcotic Drugs and Psychotropic Substances Act, 1985 |
| (d) | Officers of the stock exchange recognised under section 4 of the Securities Contracts (Regulation) Act, 1956 |
| (e) | Officers of the Reserve Bank of India constituted under sub-section (1) of section 3 of the Reserve Bank of India Act, 1934 |
| (f) | Police |
| (g) | Officers of enforcement appointed under sub-section (1) of section 36 of the Foreign Exchange Management Act, 1999 |
| (h) | Officers of the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 |
| (i) | Officers of any other body corporate constituted or established under a Central or a State Act |
| (j) | Such other officers of the Central Government, State Government, local authorities or banking companies as the Central Government may, by notification, specify |
The references to other laws are quoted as printed. The Act does not say what assistance is given; it states the duty in general terms. Whether any notification under clause (j) exists is not in the sources consulted.
Practical example
Pratibha Nambiar, a director of a private company, receives a summons from an officer acting under the Act. Section 19(2) tells her that she must attend in person or through authorised agents, as the officer directs, state the truth on the subjects on which she is examined, and produce the documents asked for. Section 19(3) tells her that the proceeding is deemed a judicial proceeding. If the officer asks a bank official to come with account records, section 19(1)(b) lets him enforce the attendance of an official of a banking company, and the records can be required under clause (c).
Other laws and later amendments
Sections 19 and 20 name the Code of Civil Procedure, 1908, the Indian Penal Code, the Income-tax Act, 1961 and the other laws listed above, each quoted as printed. Check the current income-tax, procedural and penal law for the corresponding provisions. Later amendments to the Act are not in the sources consulted; check them.
Need help responding to an officer under the Act?
A summons or requisition under section 19 binds the person summoned to attend, speak truthfully and produce documents. If you want a second pair of eyes on a summons, a document request or an attendance direction, our legal dispute resolution team can review it with you.
Key takeaways
- Four authorities: Initiating Officer, Approving Authority, Administrator and Adjudicating Authority (section 18).
- Civil-court powers cover discovery, attendance, production of documents, commissions, affidavits and prescribed matters (section 19(1)).
- A summoned person must attend, state the truth and produce documents (section 19(2)).
- Proceedings are deemed judicial proceedings within the sections of the Indian Penal Code named (section 19(3)).
- Section 20 lists officers who shall assist, including income-tax, customs and excise, police, RBI, SEBI and enforcement officers.
Read next
- Sections 21 to 23: power to call for information, impound documents and inquire
- Section 24: show-cause notice and provisional attachment
- Sections 7 to 11: the Adjudicating Authority
- Overview of the Benami Transactions Prohibition Act
Disclaimer: Based on a third-party consolidated text of the Prohibition of Benami Property Transactions Act, 1988 as amended by the Benami Transactions (Prohibition) Amendment Act, 2016, checked against the Gazette of India copy of that amending Act (11 August 2016), as consulted on 2 October 2026. The commencement notification, the rules and later amendments should be checked. This article is general information, not legal advice; check the official text before acting.