Sections 6 and 7 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 6 says who runs the Act and in which area each officer acts. Section 7 says what happens when one officer is replaced by another in the middle of a case. Both are read here from the Act as enacted and published in the Gazette of India on 27 May 2015.
The income-tax authorities specified in section 116 of the Income-tax Act are the tax authorities for this Act. Each exercises powers over persons within his jurisdiction, which is the same as under the Income-tax Act, with a special rule for an assessee who has no income assessable to income-tax. A successor officer continues from the stage reached, and the assessee may be given a hearing if he asks in writing before an order is passed.
Section 6(1) and (2): who the tax authorities are
Section 6(1) says the income-tax authorities specified in section 116 of the Income-tax Act shall be the tax authorities for the purposes of this Act. The Act does not create a new set of officers. It takes the officers named in the Income-tax Act, 1961, as printed in 2015, and gives them work under this Act.
Section 6(2) says every such authority shall exercise the powers and perform the functions of a tax authority under this Act in respect of any person within his jurisdiction. The word that matters is "jurisdiction", which the next sub-sections explain.
Section 6(3): jurisdiction follows the income-tax orders
Section 6(3) is "subject to the provisions of sub-section (4)". It says the jurisdiction of a tax authority under this Act shall be the same as he has under the Income-tax Act "by virtue of orders or directions issued under section 120 of that Act (including orders or directions assigning the concurrent jurisdiction) or under any other provision of that Act".
In practice this means an assessee does not need to look for a second set of area or case allocations. The officer who has the assessee's case under the Income-tax Act is the officer with jurisdiction under this Act, unless sub-section (4) applies. The sub-section does not describe what those orders contain, and this article does not either. Orders on jurisdiction are made under the Income-tax Act and sit outside the sources consulted. If you are not sure which officer holds your case, our legal consultation team can look at your facts and the notices you have received.
Section 6(4): an assessee with no income assessable to income-tax
Section 6(4) deals with a person who has no hook into the income-tax system for jurisdiction. It says the tax authority having jurisdiction in relation to an assessee who has no income assessable to income-tax under the Income-tax Act shall be the tax authority having jurisdiction in respect of the area in which the assessee resides or carries on its business or has its principal place of business.
| Situation | Whose jurisdiction under section 6 |
|---|---|
| Assessee has income assessable under the Income-tax Act | The officer who has jurisdiction under that Act through section 120 orders (section 6(3)) |
| Assessee has no income assessable to income-tax | The authority for the area where the assessee resides, carries on business or has a principal place of business (section 6(4)) |
The second row is useful for someone whose only source is foreign. A returning resident who has no Indian-sourced income that is assessable to income-tax is the sort of person the sub-section has in mind, though the Act itself gives no examples.
Section 6(5): control of authorities
Section 6(5) says section 118 of the Income-tax Act and any notification issued under it shall apply in relation to the control of tax authorities as they apply in relation to the control of the corresponding income-tax authorities. There is one exception: "except to the extent to which the Board may, by notification in the Official Gazette, otherwise direct in respect of any tax authority". The Board is the Central Board of Direct Taxes, as section 2(5) defines it. This article names no notification, because none is in the sources.
Section 7(1): the successor continues
Section 7(1) says the tax authority who succeeds another authority "as a result of change in jurisdiction or for any other reason" shall continue the proceedings from the stage at which it was left by his predecessor.
This has two effects.
- The case does not start again because the officer has changed. The new officer takes it from the stage it had reached.
- The change can arise from a change in jurisdiction or "any other reason". The words are wide and the Act lists no reasons.
Section 7(2): the hearing on request
Section 7(2) says the assessee in such a case "may be given an opportunity of being heard, if he so requests in writing, before passing any order in his case".
Three points follow from the printed words.
- The assessee has to ask, and has to ask in writing.
- The words are "may be given", and the Act does not say "shall". So the sub-section is not drafted as an automatic right.
- The request has to come before an order is passed.
This provision is referred to again later in the Act. Sections 23(8)(a) and 24(8)(a), on revision, leave out of the limitation period "the time taken in giving an opportunity to the assessee to be reheard under section 7". Our articles on section 23 and section 24 show how.
An example
Nandini Rao is an individual who has foreign bank interest not shown in her return. A notice is issued to her by an Assessing Officer, who is later transferred, and a new officer takes charge of her file. Under section 7(1), the new officer carries on from where the earlier officer stopped. If Nandini writes to the new officer, before any order is passed, asking to be heard, section 7(2) says she may be given an opportunity to be heard. She gains nothing by assuming that the hearing is automatic: the safe step is a written request, made in time.
Need help with a notice from a tax authority?
If you have received a notice and are not sure which officer has jurisdiction or what you may ask for, our team can read the papers with you. Start with a legal consultation and we will look at the notice, the authority that issued it and the steps open to you.
Key takeaways
- The tax authorities for this Act are the income-tax authorities specified in section 116 of the Income-tax Act, as printed.
- Jurisdiction under this Act follows the orders and directions under section 120 of the Income-tax Act, subject to section 6(4).
- An assessee with no income assessable to income-tax falls to the authority of the area where he resides or carries on business or has a principal place of business.
- Section 118 of the Income-tax Act applies to control of authorities, unless the Board notifies otherwise.
- A successor officer continues from the stage reached, and the assessee may be given a hearing on a written request.
- Later Finance Act amendments to sections 6 and 7 must be checked before acting. References to the Income-tax Act, 1961 are as printed in 2015; check the corresponding provision of the current income-tax law.
Read next
- Sections 8 and 9: powers of discovery, evidence and judicial proceedings
- Section 10: assessment of undisclosed foreign income and asset
- Section 2: definitions, assessee and undisclosed asset
- Black Money Act: undisclosed foreign income, an overview
Disclaimer: Based on the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 as enacted and published in the Gazette of India on 27 May 2015, and on the Rules of 2015 as notified on 2 July 2015, as consulted on 2 October 2026. Later Finance Act amendments, amendment rules and the current income-tax law should be checked. This article is general information, not legal advice; check the official text before acting.