Published Quick answer — income tax raids in 2026:
| Point | Position |
|---|---|
| Search ("raid") | Section 247 of the Income-tax Act, 2025 (earlier section 132): written authorisation, entry to home or business, seizure of undisclosed assets and records |
| Survey | Section 253 (earlier section 133A): business premises during business hours, inventory, statements, records impounded; no seizure of assets or stock |
| Requisition | Section 248 (earlier section 132A): assets or books held by another authority |
| After a search | Block assessment under sections 292 to 301 for six earlier years plus the current year to the date of search |
| On the day | Cooperate, give accurate statements, check the panchnama before signing, keep copies |
| Most common mistake | Agreeing to a round-figure "surrender" in a statement before the books are reconciled |
In short: An income tax raid is a search under section 247 of the Income-tax Act, 2025 (earlier section 132): officers with a written authorisation can enter homes and offices and seize undisclosed cash, jewellery and records. A survey under section 253 (earlier section 133A) is narrower and limited to business premises. During either, cooperate, give accurate statements on oath, check the panchnama before signing and avoid agreeing to a round-figure surrender. A search is followed by a block assessment of the six earlier years and the current year.
What people call an income tax raid is, in law, either a search or a survey. Both follow a set procedure and both carry rights for the person searched. What is said and signed on the first day shapes the assessment that follows for the next two years. This guide explains the difference, what happens during each, and what to do afterwards.
What is the difference between an income tax search and a survey?
| Point | Search (section 247, earlier 132) | Survey (section 253, earlier 133A) |
|---|---|---|
| Authorisation | Written warrant from a senior officer, issued on information that income or assets are undisclosed | Prior approval of a senior officer; no warrant |
| Where | Homes, offices, vehicles, lockers and any place named in the warrant | Business or professional premises; other places only if you say records are kept there |
| When | Any time; often starts early morning and runs for one or more days | Business premises only during business hours; other places between sunrise and sunset |
| Seizure | Undisclosed cash, jewellery, bullion and other assets, books and documents | No removal of assets or stock; books may be impounded after recording reasons |
| Statements | On oath; usable as evidence in the assessment | On oath; usable as evidence |
| What follows | Block assessment (sections 292 to 301) | Regular assessment or reassessment of the years involved |
What should you do during an income tax raid?
- Ask to see the authorisation and the officers' identity cards. A search needs a written authorisation naming the person and premises.
- Call your Chartered Accountant. The search team will usually not allow the CA to take part in the search itself, but early advice on statements and documents matters.
- Stay present. The search is conducted in the presence of two independent witnesses, who sign the panchnama. You or a family member should be present in each room searched.
- Be accurate in statements. A statement recorded on oath is evidence. Answer what you know. Do not guess figures, estimate unaccounted income or agree to a round-figure surrender because it is suggested. Say that you will give exact figures after checking the books.
- Check the panchnama and inventory before signing. Every item seized or placed under restraint should be listed with weight, value or description. Jewellery that is declared, inherited or customary for the family should be identified as such.
- Ask for copies. Copies of statements and of seized documents and digital data can be requested; the panchnama copy is given at the end.
- Do not obstruct. Access codes to computers and phones can be required. Refusal is treated seriously.
What happens during an income tax survey?
A survey under section 253 of the Income-tax Act, 2025 is narrower. Officers can enter business or professional premises during business hours, inspect books and cash, take an inventory of stock and cash, mark or impound records after recording reasons, and record statements on oath. They cannot remove assets or stock. A survey is often about one question, such as unrecorded sales, cash expenses or stock differences, and the reply to that question needs the reconciled books, not an estimate.
What happens after an income tax search?
A search is followed by a block assessment under sections 292 to 301 of the Income-tax Act, 2025. The block covers the six tax years before the year of search, plus the current year up to the date of the search. Undisclosed income found in the block is taxed at a special flat rate, without the usual deductions, and interest and penalty follow. The seized material, the statements and the books together decide the outcome.
- Retraction of a statement. A statement made under pressure or by mistake can be retracted, but only promptly and with reasons and evidence. A retraction months later carries little weight.
- Explaining seized material. Loose sheets and diary entries are often rough workings, estimates or another person's transactions. Each needs a written explanation linked to the books.
- Release of seized assets. Seized cash and assets can be adjusted against the tax finally due; any excess is returned with interest.
- Appeal. The block assessment order is appealable to the Commissioner (Appeals) and then the Income Tax Appellate Tribunal.
Which mistakes during a raid cost the most?
- Agreeing to "surrender" a round figure on the day to end the search quickly.
- Signing statements in a language you do not read well without asking for them to be read back.
- Not listing jewellery and cash that is already declared or explained in wealth or family records.
- Leaving the reply to the block assessment notice until the last week.
- Assuming a survey is minor. Survey findings are used in assessments and can lead to reassessment of earlier years.
Who carries out income tax searches in Kerala?
Searches and surveys in Kerala are carried out by the Investigation Wing of the Income Tax Department, usually with a regional team for each case. For businesses and families with property, jewellery or cash in the business, a clean record of what is declared, kept together and up to date, is the best preparation for a search that may never come.
Need help with this? We advise in the days after a search or survey, reconcile the seized material with the books, reply to block assessment and reassessment notices, and appeal to the Commissioner (Appeals) and the ITAT. For writs we brief tax lawyers. See search and survey support in Kochi or book a tax notice review call.
Frequently asked questions
What is an income tax raid?
An income tax raid is the common name for a search under section 247 of the Income-tax Act, 2025 (earlier section 132). It is authorised in writing by a senior officer and allows entry to homes and business premises and seizure of undisclosed cash, assets, books and records.
What is the difference between an income tax search and a survey?
A search needs a written authorisation, can cover homes as well as business premises, and allows seizure of assets. A survey under section 253 (earlier section 133A) is limited to business premises during business hours; records can be impounded and statements recorded, but assets and stock cannot be removed.
Which section covers income tax search under the new Act?
Section 247 of the Income-tax Act, 2025, which replaced section 132 of the 1961 Act from 1 April 2026. Requisition of assets held by another authority is under section 248 (earlier section 132A).
Which section covers income tax survey under the new Act?
Section 253 of the Income-tax Act, 2025 ("Powers of survey"), which corresponds to section 133A of the 1961 Act.
Can I call my CA during an income tax raid?
You can inform your Chartered Accountant and take advice, but the search team usually does not allow outsiders to take part in the search itself. Advice matters most on statements and on the reply to the assessment that follows.
Is a statement given during a raid binding?
A statement recorded on oath is evidence and is used in the assessment. It can be retracted if it was wrong or given under pressure, but the retraction should be made promptly, with reasons and evidence.
What is a block assessment?
After a search, income is assessed for a block covering the six tax years before the year of search and the current year up to the date of search, under sections 292 to 301 of the Income-tax Act, 2025. Undisclosed income in the block is taxed at a special flat rate.
How much jewellery can be kept at home without seizure?
CBDT instructions issued under the 1961 Act guided officers not to seize jewellery up to 500 grams per married woman, 250 grams per unmarried woman and 100 grams per male member, where it is not otherwise found to be undisclosed. Declared or explained jewellery should not be seized in any case; keep records ready.
Can I appeal after a search assessment?
Yes. The block assessment order is appealable to the Commissioner (Appeals) and then to the Income Tax Appellate Tribunal.
Related guides
- Tax representation in Kochi: notices, scrutiny, search and appeals up to the ITAT
- Income tax appeal in 2026: Form 99, CIT(A) and ITAT
- GST raid: inspection, search, summons and arrest
- How to avoid tax notices when selling property or shares
Sources
- Income-tax Act, 2025, sections 247, 248, 253 and 292 to 301 — incometaxindia.gov.in
This guide reflects the law as at 11 November 2026. It is general information, not advice on a specific case.