Section 138 of the Income-tax Act: Disclosure of Information Respecting Assessees

Section 138 regulates when information obtained by income-tax authorities may be disclosed to other public bodies or, in the public interest, to an applicant. Disclosure is conditional rather than automatic.

Meaning and purpose of Section 138

Information about an assessee may include records, documents and particulars obtained by an income-tax authority while performing statutory functions. Section 138 sets out limited channels for sharing such information, while permitting the Central Government to restrict disclosure by notified order.

Explanation of the statutory provisions

Section 138(1)(a): Disclosure to specified authorities

The Central Board of Direct Taxes (the Board), or an income-tax authority specified by its general or special order, may provide information necessary for another authority to perform its statutory functions. Eligible recipients include:

• An officer, authority or body administering a law concerning tax, duty or cess, or dealings in foreign exchange within the meaning of Section 2(n) of the Foreign Exchange Management Act, 1999.
• Other officers, authorities or bodies performing functions under another law, where the Central Government has specified them by Official Gazette notification in the public interest.

The disclosing authority must consider the information necessary for the recipient's functions under the relevant law. A recipient's request alone does not establish an unrestricted right to disclosure.

Section 138(1)(b): Application by a person

A person may apply in the prescribed form to the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner for information relating to an assessee that an income-tax authority obtained while exercising its functions. The authority may furnish the information if satisfied that disclosure is in the public interest. The section states that its decision is final and cannot be questioned in a court of law; that wording should be read subject to applicable constitutional law.

Section 138(2): Restrictions by notified government order

Despite sub-section (1) or another law, the Central Government may issue an Official Gazette order restricting disclosure or production by public servants for specified matters, classes of assessees or recipient authorities. Any applicable notification must therefore be checked before information is shared.

Rule 113: Application and response forms

Under Rule 113 of the Income-tax Rules, 1962, the prescribed forms for requests under Section 138(1)(b) are:

These references describe the 1961 Act framework. Verify the rules and forms applicable to any request made under the Income-tax Act, 2025.

Income-tax Act, 2025: Corresponding Section 258

The Income Tax Department's official provision-mapping navigator identifies Section 258 of the Income-tax Act, 2025 as corresponding to Section 138 of the Income-tax Act, 1961. The newer enactment took effect on 1 April 2026. The section number should not be treated as interchangeable without considering the applicable tax year and transitional rules.

Practical considerations

• Identify whether the request is an inter-agency disclosure under clause (a) or an application by a person under clause (b).
• State the specific information sought and the public-interest justification where relevant.
• Check the recipient's statutory role, applicable CBDT directions, government notifications and confidentiality restrictions.
• Use the prescribed form and competent authority for the relevant enactment and period.
• Do not assume that filing an income-tax return makes the entire return or assessment record publicly accessible.

Legislative background

Section 138 was substituted by the Finance Act, 1964, with effect from 1 April 1964. Sub-section (1) was subsequently substituted by the Finance (No. 2) Act, 1967. The Direct Tax Laws (Amendment) Act, 1987 broadened the scope of information capable of being shared, with the relevant change taking effect from 1 April 1989. Later amendments updated the references to foreign exchange law and designations of senior income-tax authorities.

Official statutory references

• Income Tax Department: Section 138 of the Income-tax Act, 1961
• Income Tax Department: Rule 113 and Forms 46 to 49
• Income Tax Department: 1961 to 2025 section navigator
• CBDT Circular No. 545: Amendments to Section 138
• Income Tax Department: Official portal

Legal information is provided for general reference. The applicable statutory text, rules and notifications govern individual cases.