After proper investigation and enquiry if the Income Tax Authority believes that person has undisclosed Income / Asset then, they conduct Search u/s. 132


  • -Enter any building / place / vessel / vehicle / aircraft

  • Break upon any lock of any door / box / locker / safe / almirah

  • Search any person

  • Inspect book / documents

  • Place marks of identification

  • Take copies of Books / documents, back up of Computer data etc.

  • Make inventory of money / bullion / jewellery / valuables

  • Requisite service of police officers

  • Seize any books/ documents / money / bullion / jewellery / valuables

  • Record Statements on oath

  • Apply Seized Assets towards existing Tax Liabilities and post search Assessment Liabilities

  • It is presumed by the Search party that :

  • Books and assets in possession of the person belongs to that person

  • Content of books / Documents are true

  • Signature is in the handwriting of that person

  • Document are attested/ stamped by that person



Precautionary Measures to be taken by an Assessee

  • Comply with all Notices and Summons in a timely and proper manner.

  • Books of Accounts should be prepared and maintained truly and correctly.

  • Income Tax & Wealth Tax Return should be prepared with complete and correct disclosures.

  • Supporting Documentary evidences of all transactions should be kept properly.

  • Physical Cash on Hand and Stock in tread must be periodically tallied with Books of accounts.

  • Avoid keeping unnecessary data, information, working either physically or electronically.

  • Ensure correct Accounting Standers are followed ( Eg. AS-7 / AS-9)

  • Ensure Income Tax provisions are squarely applicable before taking benefit of deduction under the Ace.(Eg. 80lA,80lB,)

  • Ensure High Discipline in keeping recodes.

  • Ensure Valuables and jewellery are correctly inventoried and accounted for.

  • Conduct Mock Search periodically.

  • Keep confidential things confidential.

  • Take timely advice from appropriate consultants.

  • Ensure Transactions reported in AIR are disclosed in the books.



  • Cash Deposit in a Saving Bank A/c. Rs.10 lakhs or more in a year

  • A credit card Payment Rs2 lakh or more ina year

  • Investments in mutual Fund Rs2. Lakh or more in a year

  • Investments in Bonds, Debentures Rs5 Lakh or more in years

  • Investments in Shares & Gold ETFs Rs.1 lakh or more in a year

  • Buy or sell Immovable Property Rs30 lakh or more in a year