Section 254
Section 254: power to collect certain information
Section 254 is a narrower, information-gathering power than the survey power in Section 253 or the search power in Section 247. It lets designated officers enter a business or professional place during business hours purely to collect prescribed information - nothing may be removed from the premises.
Who can enter, and where
An income-tax authority may enter any building or place within its assigned area, or occupied by a person over whom it has jurisdiction, at which a business or profession is carried on (whether or not the principal place), and require any proprietor, employee, or person attending to or helping with the business/profession to furnish such information as may be prescribed.
Timing
Entry is allowed only during the hours the place is open for the conduct of business or profession.
No removal of anything
The income-tax authority must not, on any account, remove or cause to be removed from the place entered, any books of account, other documents, cash, stock, or other valuable article or thing.
Who counts as an 'income-tax authority' here
For this section, "income-tax authority" means a Joint Commissioner, Joint Director, Assistant Director, or an Assessing Officer, and also includes an Inspector of Income-tax who has been authorised by the Assessing Officer to exercise these powers in the relevant jurisdiction (or part of it).
Frequently asked questions
How is Section 254 different from the survey power in Section 253?
Section 254 is a narrower power purely for collecting prescribed information from a business or professional place during business hours. It doesn't carry the broader inspection, impounding, or statement-recording powers that a survey under Section 253 has.
Can an Inspector of Income-tax exercise this power?
Yes, but only if authorised by the Assessing Officer to exercise the power under Section 254 in relation to the relevant jurisdiction or part of it.
Can anything be taken away during this kind of visit?
No - Section 254(3) specifically prohibits removing or causing to be removed any books, documents, cash, stock, or other valuable article or thing from the premises.
Related sections
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Get help responding to an income-tax noticeLast updated 9 September 2026