Sections 252 and 254 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.
Section 252 lets certain authorities require information from any person, including a banking company, and statements of payments from firms, Hindu undivided families, agents and assessees. Section 254 lets an income-tax authority enter a place of business during working hours to collect information, without removing anything. This article explains both as per the Income-tax Act, 2025 as amended by the Finance Act, 2026. Section 253, the power of survey, is explained separately.
The Assessing Officer, Joint Commissioner, Joint Commissioner (Appeals) or Commissioner (Appeals) may call for information, statements and returns of names under section 252(1). An assessee can be asked for a statement of persons paid rent, interest, commission, royalty, brokerage or annuity above Rs. 10,000 (or a higher prescribed amount). Under section 254, a defined authority may enter a place of business during open hours to collect information, but may not remove books, cash, stock or valuables.
By section 1(3), the Act is in force from 1 April 2026, save as otherwise provided. No Finance Act, 2026 amendment is named for these sections. Later amendments, rules and notifications should be checked. For help with a notice calling for information, see our legal dispute resolution service.
Section 252: power to call for information
Who and what: sub-section (1)
The Assessing Officer, the Joint Commissioner, the Joint Commissioner (Appeals) or the Commissioner (Appeals) may, for the purposes of the Act, require:
| Clause | From whom | What is required |
|---|---|---|
| (a) | Any person, including a banking company or any officer thereof | To furnish, within such time, the requisite information, or statements of account and affairs verified in the manner specified by the authority, giving information on such matters as in the opinion of the authority will be useful for, or relevant to, any enquiry or proceedings under the Act |
| (b) | A firm | A return of the names and addresses of the partners and their respective shares |
| (c) | A Hindu undivided family | A return of the names and addresses of the manager and the members |
| (d) | A person whom he has reason to believe to be a trustee, guardian or agent | A return of the names of the persons for or of whom he is trustee, guardian or agent, and their addresses |
| (e) | An assessee | A statement of the names and addresses of all persons to whom he has paid in any tax year rent, interest, commission, royalty, brokerage or any annuity (not being an annuity taxable under the head "Salaries"), amounting to more than Rs. 10,000, or such higher amount as may be prescribed, with particulars of all such payments |
| (f) | A dealer, broker or agent, or any person concerned in the management of a stock or commodity exchange | A statement of the names and addresses of all persons to whom he or the exchange has paid any sum in connection with the transfer of assets (by sale, exchange or otherwise), or on whose behalf or from whom he or the exchange has received any such sum, with particulars of all such payments and receipts |
The "higher amount" in clause (e) is left to the Income-tax Rules, 2026; the Act prints only the figure of Rs. 10,000. The specific form of the statements is not in the text consulted.
Who else may use clause (a): sub-section (2)
The powers in sub-section (1)(a) may also be exercised by the competent authority or the Assistant Director. "Competent authority" is defined in section 261(d).
Limits: sub-section (3)
The powers in sub-section (1):
- (a) shall not be exercised by an income-tax authority below the rank of Principal Director or Director or Principal Commissioner or Commissioner (other than a Joint Director or Assistant Director) without the prior approval of the Principal Director or Director or Principal Commissioner or Commissioner, in a case where no proceeding is pending;
- (b) may be exercised by an income-tax authority notified under section 246(2)(a), for the purposes of an agreement referred to in section 159, even if no proceedings are pending before it or any other authority.
Section 246(2)(a) is explained in our post on section 246, summons and civil court powers.
Section 254: power to collect certain information
Entry: sub-sections (1) and (2)
Irrespective of anything in any other provision of the Act, an income-tax authority may, for the purpose of collecting any information which may be useful for, or relevant to, the purposes of the Act, enter:
- (a) any building or place within the limits of the area assigned to the authority; or
- (b) any building or place occupied by any person over whom the authority exercises jurisdiction,
at which a business or profession is carried on, whether or not it is the principal place, and require any proprietor or employee or any other person attending to, helping in or carrying on the business or profession at that time to furnish such information as may be prescribed. The authority may enter only during the hours at which the place is open for the conduct of business or profession (sub-section (2)).
No removal: sub-section (3)
The authority acting under section 254 shall on no account remove or cause to be removed from the building or place any books of account, other documents, cash, stock or other valuable article or thing.
Who is the authority: sub-section (4)
"Income-tax authority" for this section means (a) a Joint Commissioner, Joint Director, Assistant Director or Assessing Officer; and (b) an Inspector of Income-tax authorised by the Assessing Officer to exercise these powers in relation to the area, or a part of it, over which the Assessing Officer exercises jurisdiction.
The information that may be required is "such information as may be prescribed", so the details are left to the Income-tax Rules, 2026; see our rule-wise guides. The powers of survey in section 253 are separate and wider: see our post on section 253, powers of survey.
Sections 252 and 254 compared
| Point | Section 252 | Section 254 |
|---|---|---|
| How information is sought | By requisition to a person, firm, HUF, trustee, assessee, dealer or exchange | By entering a place of business and requiring the proprietor, employee or other person there |
| Who may act | Assessing Officer, Joint Commissioner, Joint Commissioner (Appeals), Commissioner (Appeals); competent authority or Assistant Director for clause (a) | Joint Commissioner, Joint Director, Assistant Director, Assessing Officer; authorised Inspector |
| Entry to premises | Not provided in this section | Only during hours the place is open |
| Removal of items | Not applicable | On no account |
| Approval | Prior approval where no proceeding is pending for authorities below the stated rank | Not stated in the section |
A worked example
Names and amounts are assumed; the Rs. 10,000 figure is the one printed in section 252(1)(e).
During an enquiry, the Assessing Officer requires Mehta Brothers, an assessee, to furnish a statement under section 252(1)(e). In the tax year Mehta Brothers paid:
- rent of Rs. 1,80,000 to Mr. Rakesh Pillai;
- commission of Rs. 9,500 to Ms. Sunita Joshi; and
- brokerage of Rs. 14,000 to Mr. Arvind Das.
The statement must give names, addresses and particulars of the payments to persons paid more than Rs. 10,000 (or such higher amount as may be prescribed). On the figures printed in the Act, that covers Mr. Pillai (Rs. 1,80,000) and Mr. Das (Rs. 14,000), but not Ms. Joshi (Rs. 9,500), subject to any higher prescribed amount. Whether the amount is judged per payment or in total for each person is not stated in the clause.
Separately, an Inspector of Income-tax authorised by the Assessing Officer may under section 254 visit the premises of Mehta Brothers during the hours it is open, ask the proprietor for prescribed information, and must not remove any books, cash or stock.
Need help with a notice calling for information?
Notices asking for statements of payments, partner details or account statements often have a short time limit. Our team can help you prepare and verify the response through our legal dispute resolution service.
Key takeaways
- Section 252(1) gives six distinct information powers over persons, firms, HUFs, trustees and agents, assessees and exchange intermediaries.
- The statement of payments in clause (e) covers rent, interest, commission, royalty, brokerage or annuity above Rs. 10,000, or a higher prescribed amount.
- Prior approval is required below a stated rank where no proceeding is pending.
- Section 254 allows entry to a place of business during open hours to collect prescribed information.
- Nothing may be removed under section 254.
Read next
- Sections 255 to 258: inspection of company registers, judicial proceedings and disclosure of information
- Sections 250 and 251: application of seized assets and retention and release of books
- Section 253: powers of survey
- Chapter XIV: tax administration
Disclaimer: Based on the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026, as consulted on 2 October 2026. It explains the words of the Act only; the Income-tax Rules, 2026, notifications, circulars, later amendments and the way the tax authorities and courts apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.