Rights and Duties of Taxpayers During Search
Introduction
The CBDT’s Taxpayers’ Charter outlines key rights and duties of taxpayers during search operations. These rights also stem from statutory provisions and established procedural safeguards. Taxpayers must cooperate with the search team, while officers must conduct the search fairly and transparently.
Rights of Taxpayers During Search
- Production of Search Warrant
The authorised officer must show the valid search warrant to the occupant before commencing the search. The occupant may verify that the warrant bears the requisite signature, seal, correct name, and correct premises. The taxpayer is not entitled to retain a copy of the warrant.
- Verification of Identity of Officers
The taxpayer may verify the identity of every officer in the search team. Entry may be denied to any officer who refuses to establish identity.
- Right to Conduct Personal Search of Search Team
The taxpayer may conduct a personal search of members of the search team before and after the search to ensure that no material is planted or removed. Personal search of lady officers must be conducted by women of the household with due decency.
- Personal Liberty During Search
The taxpayer may continue daily activities so long as they do not obstruct the search.
- Right to Medical Aid
If the taxpayer or family members fall ill, medical assistance from a doctor of choice may be sought, including hospitalisation if advised.
- Children to Attend School
Children may attend school or tuition, subject to the search team checking their bags.
- Meals and Worship
The taxpayer and family members may take meals and perform religious worship.
- Permission to Leave Premises
The taxpayer may leave the premises for work or other obligations, subject to cooperation with search requirements such as recording statements or providing access to lockers.
- Presence of Legal Adviser
A taxpayer has the right to engage an authorised representative under Section 288 , except when required to appear personally under Section 131 or for recording of statement under Section 132(4) , which must be attended personally.
- Presence During Search Proceedings
Rule 112(8) allows the taxpayer or a representative to remain present throughout the search.
- Right to Make Copies of Seized Records
Under Section 132(9) , the taxpayer may make copies or extracts of seized books or documents.
- Right to Copy of Panchnama
A copy of the panchnama and annexures must be provided at the conclusion of the search.
- Right to Affix Personal Seals
The taxpayer may affix personal seals or marks on packages containing seized assets.
- Right to Copy of Statement Before Use
The taxpayer is entitled to a copy of any statement recorded from him before it is used in assessment, penalty, or prosecution.
- Protection Against Arrest
Search officers have no power to arrest under the Income-tax Act. For offences such as destruction of evidence or assault, police authorities may proceed under general criminal law.
- Continuation of Business Operations
Normal business activities may continue, provided the taxpayer does not obstruct the search. Movement of goods may be done with knowledge of the search team.
- Declaration of Undisclosed Income
The taxpayer may declare undisclosed income during the statement under Section 132(4) . As per Section 271AAB , concessional penalty rates may be available if the declaration and specification of manner of earning are made before conclusion of search.
Duties of Taxpayers During Search
- Allow Free Ingress
Upon production of a valid warrant, free and unhindered access must be allowed.
- Sign and Acknowledge the Warrant
The taxpayer must sign the warrant as acknowledgement of having seen it, without indicating consent.
- Identify Receptacles and Provide Access
Keys, passwords, and access to all receptacles containing books, documents, or assets must be provided.
- Explain Ownership of Assets and Documents
The taxpayer must identify and explain ownership of assets and documents found. Failure may attract presumptions under Section 132(4A) and 292C .
- Identify Persons Present and Prevent Personation
The taxpayer must identify all persons present and must not permit impersonation or false identification. Wrongful personation is punishable under Section 319 of Bharatiya Nyaya Sanhita, 2023.
- Restrict Entry of Unauthorised Persons
The taxpayer must prevent unauthorised persons from entering during the search.
- Not Remove or Destroy Material
No item found should be removed or destroyed. Destruction of evidence attracts Section 241 of Bharatiya Nyaya Sanhita, 2023.
- Answer Questions Truthfully
All questions must be answered truthfully. Refusal to answer, false statements, or knowingly giving false evidence may attract penal provisions under Sections 214, 216, and 227 of Bharatiya Nyaya Sanhita, 2023.
- Sign Statements, Inventories, and Panchnama
The taxpayer must sign the statement recorded under Section 132(4) , inventories prepared by the search team, and the panchnama.
- Maintain Peace and Cooperate
The taxpayer must maintain decorum and cooperate fully during and after the search to facilitate completion of proceedings.