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
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.