Section 116 of the Income-tax Act, 1961: Income-tax Authorities

Section 116 identifies the classes of income-tax authorities, from the Central Board of Direct Taxes to Inspectors of Income-tax. Understand their statutory designations, related powers and the corresponding provision under the Income-tax Act, 2025.

Updated: 26 October 2026

What does Section 116 provide?

Section 116 falls within Chapter XIII of the Income-tax Act, 1961, concerning income-tax authorities. It establishes the classes of officers and authorities recognised for purposes of that Act. It does not, by itself, confer every assessment, search, recovery or appellate power on every listed officer. Those powers and the authority to exercise them depend on other statutory provisions, notifications, appointments and jurisdictional orders.

Classes of income-tax authorities under Section 116

The following is a reader-friendly presentation of the statutory classes and designations, including later amendments to the list. For the text applicable to a particular assessment year, consult the official version for that year.

The Central Board of Direct Taxes (CBDT) is constituted under the Central Boards of Revenue Act, 1963. Section 116 recognises it as a class of income-tax authority.

What do these authorities do?

CBDT and senior commissioners

The CBDT exercises statutory administrative and supervisory functions. Section 119 of the 1961 Act addresses instructions to subordinate authorities, subject to legal limits. Principal Chief Commissioners, Chief Commissioners and Commissioners undertake functions assigned under the Act and relevant administrative orders.

Assessing Officers and jurisdiction

An Assessing Officer is a defined statutory role and is not simply every officer listed in Section 116. The definition in Section 2(7A), read with Sections 120 and 124, determines which authorities can act as Assessing Officers and the jurisdiction they may exercise.

Appeals, recovery and investigation

Commissioners (Appeals) and other authorised appellate officers perform functions under the relevant appeal provisions. Tax Recovery Officers carry out recovery functions under applicable provisions. Search, requisition and evidence-gathering powers arise from specific sections, including Sections 131, 132 and 132A, and are subject to their statutory conditions.

Practical point: Before responding to a notice or order, check the issuing officer's designation, the statutory section invoked, jurisdiction and applicable limitation period. A title alone does not establish authority for every action.

Corresponding provision in the Income-tax Act, 2025

With effect from 1 April 2026, Section 236 of the Income-tax Act, 2025 provides the classes of income-tax authorities under the new law. It carries forward the broad administrative framework, while its clauses and certain listed designations differ from the wording of Section 116 of the 1961 Act. The corresponding provisions on appointment and jurisdiction should be read together with it.

The Income Tax Department publishes the Income-tax Act, 2025 and its official transition resources. The official consolidated text of the 2025 Act, as amended by the Finance Act, 2026 (PDF), can be consulted for the current wording.

Proceedings connected with earlier years may continue under the 1961 Act in accordance with the repeal and savings provisions. The governing provision must therefore be checked against the tax year and type of proceeding.

Legislative background

The present structure of Section 116 was substantially substituted by the Direct Tax Laws (Amendment) Act, 1987, with effect from 1 April 1988. Later amendments introduced or recognised additional and joint-level authorities and principal-level designations. The source article recorded changes under the Finance Act, 1994, Finance (No. 2) Act, 1998, and Finance (No. 2) Act, 2014. Amendments after those dates should be considered when applying the section to a particular period.

Frequently asked questions

Is every income-tax authority an Assessing Officer?

No. Section 116 lists classes of authorities. The designation and jurisdiction of an Assessing Officer depend on Section 2(7A) and the relevant provisions and orders.

Who can issue instructions to income-tax authorities?

The CBDT has powers under Section 119 of the 1961 Act, subject to the restrictions stated there. Other directions and allocations of functions are governed by the relevant statutory framework.

Does Section 116 continue to matter after April 2026?

Yes, for matters governed by the 1961 Act under applicable transitional and savings provisions. Section 236 of the 2025 Act governs the classes of authorities for the new Act.

Official legal references

• Income Tax Department: Section 116, Income-tax Act, 1961
• Income Tax Department: Income-tax Act, 2025 and transition guidance
• Income-tax Act, 2025, as amended by Finance Act, 2026
• India Code: Central legislation and statutory texts

This article is general legal information. Refer to the statute, notifications and orders applicable to the relevant period and facts.