A salesman looks at a TV screen during the live telecast of the Union Budget 2023 by Finance Minister Nirmala Sitharaman, in Ahmedabad on Wednesday. , Photo credit: Vijay Soniji
The Union Budget 2023-24 has proposed certain changes in Income Tax Search and Seizure provisions in view of digitization and increasing use of technology in management and maintenance of accounts, digitization of data, cloud storage and other related aspects.
Section 132 of the Income Tax Act deals with the search and seizure procedure to be followed by the agency.
The document states: “In recent times, due to the increasing use of technology and digitization in every aspect including management and maintenance of accounts, digitization of data, cloud storage etc., the process of search and seizure has become complex, requiring Requires use of advanced techniques for data forensics, data decoding etc. for complete and proper analysis of accounts.
Similarly, “undisclosed income” is being channeled into a variety of assets or investments other than real estate. Valuation of such assets and decryption of information often require specialized domain experts such as digital forensic professionals, appraisers, archive specialists etc. for the specific nature of the operations”.
Accordingly, the Government has proposed to amend the relevant provisions of the section to provide that during IT searches, the Authorized Officer may be able to requisition the services of any other person or entity, such as the Principal Chief Commissioner or has been approved by the authority. Chief Commissioner, Principal Director General or Director General in accordance with the procedure laid down by the Board in this behalf to assist during the search.
It has also been proposed that during or after the search, the officer may refer to any person, institution or authorized valuer to estimate the fair market value of the property in the prescribed manner and within 60 days from the receipt of the reference, Can submit report. ,
If approved, the amendment will be effective from April 1.
“Consequent to the changes in 2021, assessment or reassessment as a result of search is now done under section 147 of the Act and the provisions of sections 153A and 153B are no longer applicable. The time limit for completion of assessment or reassessment in search cases is linked to the final execution of authorizations during such process, so as to establish the day of conclusion of search proceedings, and what constitutes a final authorization is section 153B. has been provided in,” it said.
Since the provisions of section 153B no longer apply, the government has proposed to provide for the meaning of execution of final authority under section 132 itself. “This amendment will be effective retrospectively from April 1, 2022,” it said.