Section 133B Income Tax Act: Power to Collect Certain Information
Section 133B of the Income-tax Act, 1961 empowered specified tax officers to visit business premises to collect prescribed information. The corresponding provision is now Section 254 of the Income-tax Act, 2025, effective from 1 April 2026.
Current law: Section 254 of the Income-tax Act, 2025
Section 254 is headed Power to collect certain information. It retains the essential structure of the earlier Section 133B, with modernised drafting. It applies to information useful or relevant for the purposes of the 2025 Act.
Section 254(1): Permitted premises and information requests
An authorised income-tax authority may enter a building or place within its assigned area, or a place occupied by a person over whom it exercises jurisdiction, where a business or profession is carried on. This includes branches and other business locations, not merely the principal office. The authority may ask a proprietor, employee or another person involved in carrying on the business or profession for information prescribed under the rules.
Section 254(2): Entry during business hours
Entry under this power is restricted to the hours when the business or professional premises are open for business.
Section 254(3): No removal of books, cash or stock
Officers acting under Section 254 must not remove books of account, documents, cash, stock or other valuables from the premises. This restriction applies to the particular power in Section 254 and does not describe powers under separate search or survey provisions.
Section 254(4): Who is an income-tax authority?
For this section, the Act identifies a Joint Commissioner, Joint Director, Assistant Director or Assessing Officer, and an Inspector of Income-tax who is authorised by the Assessing Officer to exercise the power within the relevant area or part of it.
Section 133B and Section 254: Comparison
| Issue | 1961 Act: Section 133B | 2025 Act: Section 254 |
|---|---|---|
| Purpose | Collect information relevant to income-tax administration | Same broad purpose |
| Place of entry | Business or professional premises within area or jurisdiction | Comparable premises and jurisdiction rules |
| Time of entry | During business hours | During business hours |
| Removal of records or assets | Expressly prohibited under this power | Expressly prohibited under this power |
| Officers | Joint Commissioner, Assistant/Deputy Director, Assessing Officer and authorised Inspector | Joint Commissioner, Joint Director, Assistant Director, Assessing Officer and authorised Inspector |
What should a business do during an information-collection visit?
- Verify the visiting officer's identification, designation and the purpose of the visit.
- Record the arrival time and confirm the premises are open for business.
- Provide the prescribed information accurately; do not speculate about records you cannot verify.
- Keep a contemporaneous note of the questions asked and answers given.
- If officers seek to remove records, cash or stock, request clarification of the separate legal authority relied upon.
- Consult a qualified tax professional promptly if the scope of the request or officer's authorisation is unclear.
How does information collection differ from survey and search?
Section 254 concerns obtaining prescribed information at business premises. Section 133A (survey), corresponding to Section 253 of the 2025 Act, provides different inspection-related powers. Search and seizure are governed by separate provisions and safeguards. The existence of one power should not be treated as authority to exercise another.
Historical provision: Section 133B of the Income-tax Act, 1961
The following preserves the substance of all three subsections and the Explanation from the original webpage for reference to older years and proceedings.
Section 133B(1): Authority to collect information
Notwithstanding anything contained in any other provision of the Act, an income-tax authority may, for the purpose of collecting information useful or relevant to the Act, enter:
- Any building or place within the limits of the area assigned to that authority; or
- Any building or place occupied by a person over whom that authority exercises jurisdiction, where a business or profession is carried on, whether or not it is the principal place of business.
The authority may require a proprietor, employee or other person attending to or helping with that business or profession to furnish the information prescribed.
Section 133B(2): Business hours
Entry into a business or professional place under this section is permitted only during the hours when that place is open for carrying on business or profession.
Section 133B(3): Prohibition on removal
The authority may not remove or cause removal of books of account, other documents, cash, stock or other valuable articles or things from the premises under this section.
Explanation: Income-tax authority
For the 1961 Act, the term covers a Joint Commissioner, Assistant Director, Deputy Director or Assessing Officer, and an Inspector of Income-tax authorised by the Assessing Officer within the relevant jurisdiction.
Historical amendment notes
- Inserted by the Finance Act, 1986 (Act 23 of 1986), section 27, effective 13 May 1986.
- The reference to Joint Commissioner replaced Deputy Commissioner under the Finance (No. 2) Act, 1998, effective 1 October 1998; earlier changes followed the Direct Tax Laws (Amendment) Act, 1987.
- Assistant Director and Deputy Director replaced their former inspection designations under the Direct Tax Laws (Amendment) Act, 1987.
- Assessing Officer replaced Income-tax Officer under the Direct Tax Laws (Amendment) Act, 1987.
Frequently asked questions
Can an income-tax officer enter a business at night under Section 254?
Section 254(2) restricts entry to hours when the business or professional premises are open for business. It does not create an unrestricted night-entry power.
Can officials seize cash or books under Section 254?
No. Section 254(3) expressly prohibits removal of books, documents, cash, stock or valuables using this information-collection power. Other statutory powers must be considered separately.
Does Section 133B still apply after 1 April 2026?
Section 254 of the Income-tax Act, 2025 is the corresponding provision for the new regime. The 1961 Act and savings rules may remain relevant to earlier tax years and proceedings.
Is Section 254 the same as a survey or search?
No. Section 254 concerns collecting prescribed information. Survey and search have separate statutory powers and safeguards.
Official legal references
- Income Tax Department: Section 133B of the Income-tax Act, 1961 (historical text)
- Income Tax Department: Income-tax Act, 2025 (official PDF; see Section 254)
- Income Tax Department: Section correspondence, 1961 Act to 2025 Act
- Income Tax Department: Income-tax Act, 1961 as amended by Finance Act, 2025
This page provides general legal information. Applicability to earlier years, pending proceedings and subsequent amendments should be checked against the relevant law and official notifications.