The rise of remote work in post-pandemic India has created a TDS on salary compliance challenge that neither the Income Tax Act, 1961 nor the CBDT has clearly addressed. Employers face uncertainty when an employee’s physical location differs from the registered office or when employees split their work across multiple states in a financial year. While Section 192 of the Income Tax Act mandates that employers deduct TDS on salary at the time of payment and deposit it with the central government, distributed workforces have exposed ambiguities in jurisdiction, professional tax obligations, and proper allocation of salary income. Errors in compliance can result in penalties, interest, or even criminal liability for employers.

Section 192 Explained: TDS on Salary Compliance for Employers

Section 192 of the Income Tax Act, 1961 is the primary charging mechanism for TDS on salary. It mandates that “any person responsible for paying any income chargeable under the head ‘Salaries’ shall, at the time of payment, deduct income-tax on the amount payable at the average rate of income-tax computed on the basis of the rates in force for the financial year in which the payment is made.” [1] The critical phrase is “at the time of payment” — unlike most other TDS provisions, Section 192 does not require deduction at accrual. The deduction obligation crystallises the moment salary is actually disbursed.

The section is deliberately employer-agnostic. It applies to individuals, Hindu Undivided Families, companies, trusts, partnership firms, government bodies, and cooperative societies. Under Section 204 of the Act, in cases of salary other than those paid by the Central or State Government, the “person responsible for paying” is the employer itself, or in the case of a company, the company including its Principal Officer. [1]

CBDT issues annual circulars consolidating rates and procedures for TDS on salary. The most recent for FY 2024-25 is Circular No. 03/2025 dated February 20, 2025, which consolidates amendments from the Finance Act, 2023, Finance (No. 1) Act, 2024, and Finance (No. 2) Act, 2024. [2] In areas where no new amendments apply, the provisions of Circular No. 24/2022 dated December 7, 2022 continue to operate. [3] These circulars govern how employers compute TDS, handle perquisites, report in Form 24Q, and issue Form 16 — but neither circular addresses what an employer must do when an employee’s state of physical work changes mid-year or spans multiple states simultaneously.

The Multi-State Problem: Where It Gets Complicated

When an employee works from the same location every day, the employer’s payroll compliance is relatively contained. TDS goes to the central government regardless, and professional tax — a state-level levy — is deducted and deposited with the state in which the employee works. The moment that employee begins working from a different state, even temporarily, the compliance picture becomes murky on two fronts: professional tax registration and the question of which state’s rules govern the deduction.

Professional tax is a creature of state law, authorised by Article 276 of the Constitution of India, which provides for the levy of “a tax on professions, trades, callings and employments” not exceeding Rs. 2,500 per annum. [4] Each state that levies professional tax — currently Karnataka, Maharashtra, West Bengal, Andhra Pradesh, Telangana, Tamil Nadu, Gujarat, Kerala, Assam, Odisha, Jharkhand, Sikkim, Meghalaya, Tripura, Madhya Pradesh, Mizoram, and Bihar — establishes its own slab rates, payment cycles, and registration requirements. An employer must register separately in each state where it has a place of work. [4]

When an employee works from home in a different state from the employer’s registered office, the question of whether the employee’s home constitutes the employer’s “place of work” in that state does not have a definitive statutory answer. The employer arguably has a professional tax compliance obligation in the state where the employee is physically performing services, but without a formal office or registration there, this obligation exists in a practical and legal grey zone.

Section 9(1)(ii) and the Territorial Connection of Salary Income

Any analysis of TDS jurisdictional issues must begin with Section 9(1)(ii) of the Income Tax Act, 1961, which deems salary income to “accrue or arise in India” if it is earned in India. The Explanation to this clause, inserted by the Finance Act, 1983 with retrospective effect from April 1, 1979, clarifies that income under the head Salaries “payable for service rendered in India” shall be regarded as income earned in India. [5]

The operational significance of Section 9(1)(ii) cannot be understated for the multi-state scenario. If an employee’s work is geographically diffuse, the “place of rendering service” becomes the determinant of where salary income arises. For a remote worker alternating between Maharashtra and Goa, it is theoretically possible that salary accrues partly in both states. The Income Tax Act, at the central government level, does not make this distinction practically meaningful since all TDS ultimately flows to the Union, but it creates a valid conceptual problem for state-level professional tax compliance.

Landmark Case Law: CIT v. Eli Lilly and Co. (India) Pvt. Ltd. (2009)

The foundational judicial authority on the territorial reach of Section 192 is the Supreme Court’s judgment in Commissioner of Income Tax, New Delhi v. M/s Eli Lilly and Co. (India) Pvt. Ltd. and Others, decided on March 25, 2009, reported at (2009) 312 ITR 225 (SC). [5] The case arose from a batch of 104 appeals across various High Courts and tribunals on whether Indian joint venture companies were obligated to deduct TDS under Section 192(1) on “home salary” paid by foreign parent companies to expatriate employees outside India.

The Supreme Court held that Section 192 and Section 9(1)(ii), read together, form an “integrated code.” The Court ruled that if the payments of home salary abroad have “any connection or nexus with his rendition of service in India, then such payment would constitute income which is deemed to accrue or arise to the recipient in India as salary earned in India in terms of Section 9(1)(ii).” The Court further held that TDS provisions under Chapter XVII-B are not purely mechanical provisions operating in isolation from the charging provisions; they form part of a coherent legislative scheme that must be read purposively. [5]

The ratio firmly establishes that “territorial connection” — not just the place of payment — determines TDS liability. The physical location where services are rendered anchors the salary income to a jurisdiction. For domestic remote workers moving between states, this principle raises questions that the Supreme Court has not yet been asked to answer directly. If a software engineer renders services from Hyderabad for eight months and from Chandigarh for four months within a single financial year, under the Eli Lilly principle her salary income arguably has a territorial connection to both Telangana and Punjab/Haryana — but professional tax treatment of this scenario remains unarticulated in any binding authority. [9]

The Form 24Q Problem and the Employer’s TAN

Every employer deducting TDS under Section 192 must file quarterly TDS returns in Form 24Q with the Income Tax Department and issue Form 16 annually to employees. CBDT Circular No. 03/2025 introduced a new Column No. 388A in Form 24Q to capture TDS deducted under additional sections, ensuring complete reporting. [2] Employers file under a single Tax Deduction Account Number (TAN), registered at a fixed address. This creates a structural problem: the TAN does not track the employee’s shifting physical location, and Form 24Q does not require disclosure of the state(s) from which work was performed.

The practical result is that an employee who works from Maharashtra for six months and from Karnataka for six months in the same financial year has her entire TDS credited under the employer’s single central filing. The employer’s professional tax registration — and hence the state’s ability to collect professional tax — may be confined to Maharashtra, leaving Karnataka with no collection mechanism and no awareness of the liability. CBDT Notification No. 112/2024 dated October 15, 2024 introduced Form 12BAA, requiring employees to disclose TDS and TCS deducted on non-salary income to their employer, and expanded the scope of Section 192(2B) to allow employers to adjust salary TDS by taking into account TCS credits. [6] But even this notification is silent on the multi-state professional tax issue.

Professional Tax Across Multiple States: The Registration Trap

For employers with pan-India distributed workforces, professional tax registration is arguably the most under-addressed compliance risk. The applicable state professional tax legislation mandates that “application for the Registration Certificate has to be done separately to each authority with respect to the place of work coming under the jurisdiction of that authority.” [4] A Bengaluru-headquartered IT company whose engineering team suddenly works from their homes in Hyderabad, Pune, Chennai, and Bhubaneswar has, in theory, triggered registration obligations in Telangana, Maharashtra, Tamil Nadu, and Odisha simultaneously.

The slab rates differ significantly: Maharashtra charges Rs. 200 per month for employees earning above Rs. 10,000 per month, while Telangana operates different income bands. The maximum professional tax is constitutionally capped at Rs. 2,500 per annum per person, but non-registration and non-deduction attract penalties under each state’s statute. An employer using Maharashtra’s slabs for an employee working from Hyderabad is technically non-compliant in Telangana even if the quantum of deduction happens to be similar. The additional compliance burden for employers managing employees across multiple locations has been widely identified as a significant practical challenge — applying the wrong state’s rules is described by payroll practitioners as a common mistake particularly for employers managing employees across multiple locations. [4]

Section 192(2) and the Multiple Employer Rule: A Partial Analogy

Section 192(2) of the Income Tax Act, 1961 provides a partial mechanism for employees who have more than one employer. Where an employee is employed with more than one employer, she may furnish particulars of salary income from the other employer(s) in Form 12B, and the primary employer then deducts TDS on the aggregate income. This provision was designed for job-changers rather than multi-location workers, but it offers an indirect analogy: the Act does contemplate salary income arising from multiple sources and has a mechanism for aggregation before deduction.

The analogy breaks down for the multi-state problem because the issue there is not multiple employers but a single employer with a mobile employee. There is no corresponding provision requiring the employee or employer to declare or track states of physical work throughout the year. CBDT Circular No. 24/2022 notes that where an employee has more than one employer, each employer issues Part A of Form 16 for the period of employment with that employer. [3] This approach of apportioning Form 16 is not available for multi-state work within a single employment because TDS remains a single stream under one TAN.

Assessee-in-Default Risk: TDS on Salary Penalties Under Sections 201, 271C & 276B

An employer who fails to deduct TDS or deducts an incorrect amount becomes an “assessee in default” under Section 201 of the Income Tax Act, 1961. Section 201(1A) mandates interest at 1.5% per month from the date on which TDS should have been deducted to the date of actual deposit. Section 271C imposes a penalty equal to the amount of TDS that was not deducted. Section 276B provides for rigorous imprisonment of between three months and seven years and a fine for failure to deposit deducted TDS with the government. [2]

ITAT Patna’s ruling in the matter of Ashish Ranjan, affirmed by the Delhi High Court’s decisions in Sanjay Sudan and Chintan Bindra, clarified that Section 205 bars the tax department from recovering TDS from the employee if TDS was actually deducted by the employer — the liability for non-deposit remains squarely with the employer. [7] This creates an asymmetric risk for the multi-state scenario: the employee is protected if TDS was deducted, but the employer bears full default liability under both central and state law regardless of how genuinely ambiguous the jurisdictional question was.

The BDO India analysis of the Delhi ITAT’s ruling in a secondment context further makes clear that CBDT Circular 720, dated August 30, 1995, establishes that salary payments can be liable for TDS under only one section — i.e., the same salary cannot be subjected to TDS twice, once under Section 192 and again under Section 195. [8] While that principle addresses a cross-border rather than cross-state scenario, it reinforces the idea that the Indian TDS regime assumes a single point of withholding per payment, without mechanisms to apportion across multiple jurisdictions.

What Employers Are Actually Doing

In the absence of clear guidance, most large employers have adopted pragmatic positions. The dominant approach is to tie professional tax registration and deduction to the employer’s registered or principal office location, irrespective of where the employee physically works. A second common approach is to deduct professional tax based on the employee’s state of residence at onboarding, making no adjustments when the employee relocates. A third, more cautious approach — used by multinationals with large distributed teams — is to obtain professional tax registrations in every state where significant numbers of employees are resident, treating employees’ homes as places of work. None of these approaches is formally endorsed by any CBDT circular or state professional tax authority, and the compliance gap is systematically embedded in payroll systems used by millions of Indian employers.

Conclusion

TDS on salary under Section 192 of the Income Tax Act, 1961 is built on the assumption that an employee works from a fixed location. The Supreme Court in CIT v. Eli Lilly (2009) established that territorial connection — specifically the place of rendition of services — determines where salary income accrues and hence where TDS obligations arise. [5] CBDT’s Circular No. 03/2025 for FY 2024-25 has refined TDS computation mechanics but has not addressed the multi-state remote work scenario. [2] Professional tax, governed by Article 276 of the Constitution and individual state statutes, explicitly requires state-specific registration when a place of work spans multiple states. [4] These obligations carry the full weight of Sections 201, 271C, and 276B penalties irrespective of the amounts involved. Until India’s tax administration produces coherent guidance for the distributed workforce, employers are making risk-weighted decisions in a legal vacuum — and that problem will only grow as remote work becomes a permanent feature of Indian employment.

References

[1] CBDT / Income Tax India – TDS on Salaries (Official Booklet): https://incometaxindia.gov.in/booklets%20%20pamphlets/tds-on-salaries.pdf

[2] ASC Group – CBDT Circular No. 03/2025: TDS from Salaries for FY 2024-25: https://www.ascgroup.in/comprehensive-updates-on-tds-from-salaries-for-fy-2024-2025/

[3] Taxmann – CBDT Circular No. 24/2022 on Salary TDS for FY 2022-23: https://www.taxmann.com/post/blog/cbdt-issues-circular-on-tds-from-salaries-for-financial-year-2022-23/

[4] Tally Solutions – Professional Tax Calculation: State-wise Guide India 2025: https://tallysolutions.com/accounting/professional-tax-calculation-state-wise-india/

[5] Indian Kanoon – CIT v. Eli Lilly & Co. (India) Pvt. Ltd., (2009) 312 ITR 225 (SC): https://indiankanoon.org/doc/1160384/

[6] Tax at Hand (KPMG) – CBDT Notification No. 112/2024: Form 12BAA and TDS/TCS Credit on Salary: https://www.taxathand.com/article/38230/India/2024/CBDT-notification-updates-process-and-forms-for-claiming-TDSTCS-credit-on-salary-

[7] Ahuja & Ahuja – ITAT Patna: Employee Not Liable for Employer’s TDS Default under Section 205: https://www.ahujaandahuja.in/itat-patna-employee-not-liable-for-employers-tds-default-under-section-205/

[8] BDO India – Delhi ITAT Rules on Withholding Tax for Salary Reimbursement in Secondment Cases: https://www.bdo.in/en-gb/insights/alerts-updates/direct-tax-alert-delhi-tax-tribunal-gives-ruling-on-applicability-of-withholding-tax-provision-on

[9] itatonline.org – CIT v. Eli Lilly (Supreme Court): Case Summary and Ratio: https://itatonline.org/archives/cit-vs-eli-lilly-supreme-court/

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Introduction

The Central Board of Direct Taxes (CBDT) issued an Office Memorandum on February 27, 2025, fundamentally altering how search and survey case information flows through India’s tax administration system. This CBDT directive exempts information arising from investigation activities conducted between April 1, 2021, and September 1, 2024, from the Risk Management Strategy framework under the Income-tax Act, 1961. Rather than uploading such information to the Centralised Risk Intelligence Unit or Verification Risk Unit functionalities, field officers must now forward it directly to Jurisdictional Assessing Officers for action under Section 147 of the Income-tax Act, 1961.[1] This procedural shift emerges against the backdrop of significant amendments introduced through the Finance (No. 2) Act, 2024, particularly affecting the reassessment provisions that govern how escaped income is brought to tax. The memorandum addresses field formations that sought clarity following these amendments, especially concerning how to handle information already within the system and what procedures apply to cases straddling the old and new legal regimes.

Understanding the Risk Management Strategy Framework

The Risk Management Strategy represents a systematic approach developed by the Central Board of Direct Taxes to identify returns requiring closer examination. Through the Centralised Risk Intelligence Unit and Verification Risk Unit functionalities, the Income Tax Department analyzes patterns suggesting potential tax evasion. This framework evaluates submitted returns against multiple data sources, including Annual Information Statements, Statement of Financial Transactions, Tax Deducted at Source information, and inputs from the Directorate of Investigation and Criminal Intelligence. When the system flags discrepancies or patterns consistent with income escapement, it generates leads for field officers to pursue. The process aims to replace random selection with data-driven identification of cases warranting scrutiny. However, the CBDT’s February 2025 Office Memorandum carves out a significant exception to the Risk Management Strategy framework. Information obtained through search operations under Section 132, requisitions under Section 132A, or surveys under Section 133A of the Income-tax Act, 1961, conducted during the specified period no longer requires processing through these risk management channels.[2]

Search and Survey Powers Under Indian Tax Law

Section 132 of the Income-tax Act, 1961, confers upon authorized officers the power to conduct search and seizure operations when they possess information suggesting willful omission, non-compliance, or concealment by taxpayers. These operations constitute serious investigative measures requiring approval from Director or Commissioner-level officials. During such searches, authorized officers may enter premises, break open locks where necessary, examine individuals under oath, seize books of account, documents, money, bullion, jewelry, or other valuable assets, and create inventories of seized materials. The statements recorded during search proceedings under Section 132(4) carry evidentiary weight in subsequent legal proceedings. In contrast, Section 133A empowers officers to conduct surveys, which represent less intrusive investigative tools. Survey operations permit officers to enter business premises during working hours, inspect books of account and documents, verify stock and other assets, and record statements that may prove useful in proceedings under the Act. However, unlike search operations, surveys do not authorize seizure of materials. Officers conducting surveys may place identification marks on books or documents and require individuals present to afford necessary facilities for inspection, but they cannot remove materials from the premises. The distinction between these investigative tools matters significantly because the CBDT February 2025 Office Memorandum applies differently depending on which power was exercised and when.[3]

Legislative Evolution: From Finance Act 2021 to Finance (No. 2) Act 2024

The reassessment provisions underwent substantial transformation through the Finance Act, 2021, which introduced Section 148A requiring mandatory inquiry before issuing reassessment notices. This amendment aimed to reduce arbitrary reopening of assessments by mandating that Assessing Officers conduct preliminary inquiries and provide taxpayers opportunities to respond before initiating formal reassessment proceedings. The provision required officers to serve show-cause notices accompanied by information suggesting income escapement, allowing taxpayers between seven and thirty days to respond. Only after considering such responses could officers determine whether cases warranted formal reassessment notices under Section 148. These procedural safeguards represented a significant shift from the earlier regime where “reason to believe” permitted more discretionary reassessment initiation. The Finance (No. 2) Act, 2024, further modified these provisions effective September 1, 2024. The amendments altered how information triggers reassessment proceedings and clarified temporal application of old versus new provisions. Section 152 of the Income-tax Act, 1961, as amended, now explicitly addresses search, survey, and requisition cases initiated between April 1, 2021, and September 1, 2024. For these cases, the law mandates application of pre-amendment provisions of Sections 147 to 151 as they existed before the Finance (No. 2) Act, 2024. This temporal carve-out recognizes that investigations commenced under one legal framework should continue under those same provisions rather than shifting mid-stream to new procedures.[4]

The Deemed Information Principle

The CBDT February 2025 Office Memorandum establishes that when search operations under Section 132, requisitions under Section 132A, or surveys under Section 133A occur, the law deems the Assessing Officer to possess sufficient information, eliminating the need for separate Risk Management Strategy (RMS) profiling. This deeming fiction eliminates the need for separate information gathering or risk profiling that would ordinarily occur through the Risk Management Strategy framework. The CBDT February 2025 Office Memorandum operationalizes this principle by directing that such information bypass the Centralised Risk Intelligence Unit and Verification Risk Unit functionalities entirely. Field officers who conducted investigations already possess concrete findings about potential tax evasion. Requiring them to upload this information to risk management systems for algorithmic assessment would constitute unnecessary procedural layering. The Jurisdictional Assessing Officer dealing with the taxpayer’s regular assessments represents the appropriate recipient for such investigation-derived information. This officer possesses familiarity with the taxpayer’s history, pattern of filings, and prior interactions with the department. Direct transmission enables faster action while maintaining appropriate oversight through supervisory authorities who must ensure compliance with specified timelines. The memorandum required officers to complete transfers of previously uploaded information by March 10, 2025, ensuring Jurisdictional Assessing Officers had sufficient time for necessary actions under Section 147.[5]

Section 147 and the Reassessment Mechanism

Section 147 of the Income-tax Act, 1961, empowers Assessing Officers to assess or reassess income chargeable to tax that has escaped assessment for any assessment year, subject to provisions contained in Sections 148 to 153. The section permits officers to recompute losses, depreciation allowances, or other allowances for the relevant assessment year. During reassessment proceedings, if officers discover additional issues where income escaped assessment, they may assess such income regardless of whether it formed part of the original reasons for reopening. This expansive power exists to ensure no taxable income escapes the tax net due to inadvertent omissions or deliberate concealment. The Finance Act, 2021, modified reassessment procedures by introducing Section 148A, which requires preliminary inquiry and taxpayer hearing before issuing formal notices. Section 148 mandates that before making any assessment or reassessment under Section 147, officers must issue notices requiring taxpayers to furnish returns within specified periods not exceeding three months from month-end of notice issuance. These notices must accompany copies of orders passed under Section 148A determining cases as fit for reassessment. The procedural safeguards aim to prevent arbitrary or capricious exercise of reassessment powers while maintaining revenue’s ability to tax escaped income. Section 149 prescribes time limits for notice issuance—generally three years from the relevant assessment year’s end, extendable to ten years where escaped income amounts to or exceeds fifty lakh rupees. These temporal restrictions balance the need for finality in tax assessments against the imperative of preventing substantial revenue loss through income escapement.[6]

Application to Search and Survey Cases

For cases where searches, surveys, or requisitions occurred between April 1, 2021, and September 1, 2024, Section 152 of the Income-tax Act, 1961 mandates application of pre-amendment provisions of Sections 147 to 151. This ensures that investigations initiated under one legal framework continue under the same statutory provisions. According to the CBDT February 2025 Office Memorandum, the Assessing Officer in such cases is deemed to have information indicating income escapement, eliminating the need for separate Risk Management Strategy (RMS) execution. The memorandum directs field officers to transmit investigation-derived information directly to Jurisdictional Assessing Officers, bypassing the Centralised Risk Intelligence Unit (CRIU) and Verification Risk Unit (VRU) functionalities, ensuring faster and more efficient action. This direct transmission respects the deeming fiction while allowing officers familiar with the taxpayer’s history and filings to take timely action. Officers were required to complete transfers by March 10, 2025, giving Jurisdictional Assessing Officers adequate time to act before limitation periods expired. Supervisory authorities monitored compliance to prevent cases from falling through administrative gaps. For investigations not involving searches, surveys, or requisitions, officers must continue uploading information to RMS functionalities to ensure proper execution of the Risk Management Strategy. [7]

Judicial Interpretation and Case Law Development

Courts have consistently emphasized that reassessment powers must be exercised judiciously rather than arbitrarily. The Supreme Court’s decision in GKN Driveshafts (India) Ltd. v. ITO established foundational principles regarding taxpayer rights during reassessment proceedings. The Court held that when taxpayers object to reasons recorded for reopening assessments, Assessing Officers must pass speaking orders disposing of such objections before proceeding further. This procedural requirement ensures transparency and provides taxpayers meaningful opportunities to challenge reassessment initiation. Courts have also addressed the “reason to believe” standard that previously governed reassessment commencement. Judicial interpretation established that this belief must rest on tangible material rather than mere suspicion or change of opinion. Where taxpayers disclosed all material facts during original assessment, courts held that mere reinterpretation of the same facts cannot justify reassessment. The “change of opinion” doctrine prevents officers from repeatedly reconsidering settled positions absent fresh information suggesting income escapement. These judicial principles remain relevant even under amended provisions requiring “information” rather than “reason to believe” for reassessment initiation.[8]

Disclosure Requirements and Taxpayer Obligations

The Supreme Court has articulated that taxpayers’ obligations extend to making full and true disclosure of all material or primary facts relevant to their tax assessments. Once taxpayers satisfy this disclosure burden, responsibility shifts to Assessing Officers to draw appropriate inferences and pursue matters appropriately. If returns contain defects, officers must intimate taxpayers to enable defect curing rather than treating defective returns as justification for later reassessment. This principle protects taxpayers who act in good faith while ensuring officers cannot claim escaped income when taxpayers provided sufficient information for proper assessment. Courts have distinguished between primary facts, which taxpayers must disclose, and legal inferences or conclusions, which represent officers’ responsibilities. Where taxpayers furnish information about transactions but claim particular tax treatment, officers cannot later characterize the same transactions differently and claim income escaped assessment unless taxpayers failed to disclose relevant primary facts. This distinction prevents reassessment from becoming mere review of earlier assessments where officers adopt different legal positions regarding disclosed facts. The judicial framework balances revenue’s interest in taxing escaped income against taxpayers’ interest in assessment finality and protection from arbitrary action.[9]

Practical Implementation and Compliance Challenges

The CBDT February 2025 Office Memorandum created immediate compliance obligations for field officers who had already uploaded search and survey case information to Risk Management Strategy (RMS) functionalities. These officers needed to identify affected cases, extract information from the Centralised Risk Intelligence Unit or Verification Risk Unit systems, and transmit it directly to appropriate Jurisdictional Assessing Officers before the March 10, 2025 deadline. This process required coordination between investigation directorates and assessment charges, particularly where investigations occurred in one jurisdiction while taxpayers’ regular assessments proceeded in another. Supervisory authorities bore responsibility for monitoring compliance, ensuring no cases languished in administrative limbo due to the procedural transition. For Jurisdictional Assessing Officers receiving investigation-derived information, the memorandum triggered obligations to evaluate whether circumstances warranted action under Section 147. Officers needed to determine whether information suggested income escapement, whether applicable limitation periods permitted reassessment notices, and whether pre-amendment or post-amendment procedures applied. Given that affected investigations occurred between April 1, 2021, and September 1, 2024, officers needed to apply pre-amendment provisions of Sections 147 to 151 as mandated by Section 152. This required officers to maintain familiarity with superseded legal provisions rather than simply applying current law.

Impact on Taxpayers Under Investigation

Taxpayers subject to searches or surveys during the April 2021 to September 2024 period face reassessment under pre-amendment provisions regardless of when Jurisdictional Assessing Officers actually receive information and initiate proceedings. This temporal application means such taxpayers cannot claim benefits of enhanced procedural protections introduced through the Finance (No. 2) Act, 2024. However, they retain protections afforded by the Finance Act, 2021, including mandatory preliminary inquiry under Section 148A and opportunities to respond before formal reassessment notices issue. The direct transmission of investigation information to Jurisdictional Assessing Officers may actually benefit some taxpayers by reducing processing delays inherent in routing through risk management systems. When information moves directly to officers familiar with taxpayers’ histories, those officers can evaluate matters more efficiently and may identify contexts explaining apparent discrepancies. Conversely, some taxpayers may prefer systematic risk evaluation that occurs through centralized units, as such processes may filter out marginal cases that local officers might pursue. The memorandum’s exemption means investigation-derived information bypasses such filtering, potentially leading to more frequent reassessment initiations based on search or survey findings regardless of whether systematic risk profiling would flag such cases as priorities.

Policy Implications and Assessment

The CBDT February 2025 Office Memorandum reflects a policy judgment that investigation-derived information warrants different treatment from information obtained through routine compliance activities. When officers conduct searches or surveys based on suspicion of tax evasion, their findings represent targeted intelligence rather than pattern-detected anomalies. Requiring such findings to undergo systematic risk evaluation through the Centralised Risk Intelligence Unit or Verification Risk Unit would constitute unnecessary procedural layering that delays appropriate action. The direct transmission approach recognizes that Jurisdictional Assessing Officers need investigation findings promptly to take timely action before limitation periods expire. Whether this approach creates legal loopholes or closes investigation gaps depends significantly on implementation quality. If Jurisdictional Assessing Officers exercise powers judiciously, evaluating investigation findings critically and pursuing only cases with genuine merit, the system may function effectively while reducing procedural delays. However, if officers pursue all investigation-derived leads without careful evaluation, the exemption from risk management filtering could lead to overreach and unnecessary litigation. The absence of centralized oversight that risk management systems provide means supervisory authorities within assessment charges bear enhanced responsibility for ensuring appropriate exercise of reassessment powers. The memorandum’s requirement for supervisory monitoring of compliance deadlines represents one such safeguard, but broader quality control mechanisms may prove necessary to prevent arbitrary action.

Conclusion

The Central Board of Direct Taxes’ (CBDT) February 27, 2025 Office Memorandum exempting search and survey cases from risk management strategy (RMS) requirements reflects careful calibration of administrative procedures to statutory amendments. By directing investigation-derived information directly to Jurisdictional Assessing Officers rather than through centralized risk evaluation systems, the memorandum operationalizes the deeming fiction that such officers possess sufficient information to initiate reassessment proceedings. This approach respects the distinction between targeted investigations that uncover specific tax evasion and systematic risk profiling that identifies patterns warranting examination. The temporal limitation to investigations conducted between April 1, 2021, and September 1, 2024, ensures the exemption applies to cases where pre-amendment reassessment provisions govern, maintaining consistency between substantive and procedural law. Whether this approach closes investigation gaps or creates legal loopholes ultimately depends on how Jurisdictional Assessing Officers exercise the powers the memorandum facilitates. Careful evaluation of investigation findings, application of appropriate legal standards, and respect for taxpayer rights including opportunities to respond before reassessment proceeds will determine whether the system functions as intended. The judicial framework developed through cases emphasizing procedural fairness, disclosure requirements, and limits on arbitrary reassessment provides essential guardrails. Taxpayers retain rights to challenge reassessment initiation where officers fail to satisfy statutory prerequisites or act on the basis of change of opinion rather than new information. As implementation proceeds, monitoring by supervisory authorities and higher appellate forums will reveal whether the exemption achieves its stated purpose of streamlining procedures while maintaining appropriate safeguards against overreach.

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Introduction

The Finance Act 2022 introduced significant amendments to Section 133A of the Income Tax Act, 1961, fundamentally altering the landscape of survey operations conducted by income tax authorities in India. These amendments, which came into effect from April 1, 2022, have created a structured collegium approval framework while simultaneously raising concerns about unauthorized surveys and jurisdictional challenges. Section 133A empowers income tax authorities to enter business premises, verify books of account, and gather information relevant to tax proceedings. However, the recent modifications have transformed this provision from a relatively straightforward investigative tool into a complex mechanism requiring multiple layers of approval, creating what can be termed a “collegium approval paradox.”[1]

The legislative intent behind these amendments was to introduce greater accountability and prevent misuse of survey powers, which are considered intrusive in nature. The Central Board of Direct Taxes (CBDT) issued detailed orders under Section 119 of the Income Tax Act to operationalize these amendments, specifying which authorities can conduct surveys and mandating approval from senior officers or collegiums comprising Principal Chief Commissioners or Director Generals.[2] While these safeguards aim to protect taxpayers from arbitrary action, they have simultaneously created practical challenges in survey authorization, raising questions about the validity of surveys conducted without proper approval and the evidentiary value of materials gathered during such operations.

Legislative Framework of Section 133A

Section 133A of the Income Tax Act, 1961, grants income tax authorities the power to enter any place of business or profession within their jurisdiction to verify books of account, documents, cash, stock, or other valuable articles that may be useful for any proceeding under the Act. Unlike Section 132 which deals with search and seizure operations commonly known as raids, Section 133A governs survey operations which are less intrusive but nonetheless significant investigative tools. The key distinction lies in the fact that survey operations must be conducted during business hours at business premises, whereas search operations under Section 132 can be conducted at any time and at any location including residential premises.[3]

Prior to the Finance Act 2022 amendments, the Explanation to Section 133A defined “income-tax authority” as any authority subordinate to the Principal Director General of Income Tax (Investigation), Director General of Income Tax (Investigation), Principal Chief Commissioner of Income Tax (TDS), or Chief Commissioner of Income Tax (TDS). This limitation was introduced through the Taxation and Other Laws (Amendment and Relaxation of Certain Provisions) Act, 2020, which restricted survey powers exclusively to officers in Investigation Wings and TDS charges, removing these powers from regular assessment officers.

The Finance Act 2022 further amended the Explanation to Section 133A by providing that the income tax authority shall be subordinate to the Principal Director General, Director General, Principal Chief Commissioner, or Chief Commissioner as may be specified by the Board. This amendment broadened the scope while simultaneously requiring explicit specification by the CBDT, creating a two-tier authorization structure. The proviso to sub-section six of Section 133A mandates that no action under this section shall be taken by an income tax authority without the approval of the Principal Director General, Director General, Principal Chief Commissioner, or Chief Commissioner.[4]

The CBDT Collegium Framework

Following the Finance Act 2022 amendments, the CBDT issued a critical order dated November 22, 2022, under Section 119 of the Income Tax Act, which established a detailed framework for conducting surveys under Section 133A. This order superseded previous orders and created a collegium-based approval mechanism for different categories of charges within the Income Tax Department. The order specified that authorization for action under Section 133A shall be issued by an income tax authority not below the rank of Joint Director or Joint Commissioner with prior approval from the Director General or Chief Commissioner for Investigation Wings and Central charges, and from the Principal Chief Commissioner for all other charges.[5]

The collegium framework operates differently for various departmental charges. For TDS charges, any verification or survey under Section 133A shall be conducted by officers of the TDS charge itself, with approval from the Principal Chief Commissioner of the region or Chief Commissioner (TDS), as applicable. For Central charges reporting to the Director General (Investigation), surveys must be approved by that authority and conducted by Investigation Wing officers including officers from the Central charge. However, for Central charges headed by Chief Commissioner (Central), approval must come from a collegium consisting of the Chief Commissioner (Central) as one member and the Director General (Investigation) of the region as the other member.

For the International Taxation Division, TDS surveys require approval from a collegium comprising the Principal Chief Commissioner (International Taxation and Transfer Pricing) or Chief Commissioner (International Taxation and Transfer Pricing) as one member, and Chief Commissioner (TDS) or Principal Chief Commissioner of the region as the other member. Non-TDS surveys by the International Taxation Division require approval from a collegium of the Principal Chief Commissioner (International Taxation and Transfer Pricing) or Chief Commissioner (International Taxation and Transfer Pricing) and Director General (Investigation). Similar collegium requirements exist for surveys initiated by the National e-Assessment Centre, National Faceless Appeal Center, Exemption Charge, and the Information and Central Intelligence Charges.[6]

The CBDT order clarifies that collegiums shall consist of two officers at the level of Principal Chief Commissioner, Chief Commissioner, or Director General, and shall operate only where more than one such officer is available to make decisions regarding surveys. The means and mechanism for collegium functioning, including details about meetings, shall be decided by the senior officer of the collegium. In cases of disagreement between collegium members, the issue shall be resolved by the Principal Chief Commissioner of the region. The order reiterates that surveys can be conducted only by officers of Investigation Wings or TDS charges and shall be taken only as a last resort when all other means of verification, obtaining details online, or recovery are exhausted.[7]

The Collegium Approval Paradox

The collegium approval framework, while designed to introduce accountability, has created several practical challenges that constitute what can be termed the “collegium approval paradox.” The fundamental paradox lies in the fact that the very mechanism intended to prevent unauthorized surveys may itself render many surveys technically unauthorized if the complex approval requirements are not meticulously followed. Given the multi-layered approval structure involving collegiums of senior officers, delays in obtaining approvals can hamper timely action in cases requiring urgent intervention. Furthermore, the requirement for collegium approval creates jurisdictional ambiguities when officers from different charges need to coordinate for survey operations.

The paradox becomes particularly acute in cases where surveys need to be conducted urgently based on time-sensitive intelligence. The elaborate approval mechanism may result in loss of crucial evidence or provide assessed parties with opportunities to conceal relevant materials. Additionally, the collegium framework requires coordination between Investigation Wings and other departmental charges such as TDS, International Taxation, or Exemption charges, which may not always function seamlessly. The order specifies that surveys must include officers from both the requesting charge and the Investigation Wing, creating logistical challenges in team composition and operational coordination.

Another dimension of this paradox emerges from the retrospective application concerns. Surveys conducted between April 1, 2022 (when the Finance Act 2022 amendments took effect) and November 22, 2022 (when the detailed CBDT order was issued) may face challenges regarding their validity if they were not conducted in compliance with the collegium framework that was subsequently specified. This creates uncertainty about the evidentiary value of materials gathered during that interim period. The requirement that surveys be conducted only as a last resort after exhausting all other means of verification also introduces subjective elements into the authorization process, potentially leading to disputes about whether this condition was satisfied before initiating survey action.[8]

Unauthorized Survey Challenges

The stringent approval requirements introduced post-Finance Act 2022 have heightened concerns about unauthorized surveys and their legal consequences. An unauthorized survey can arise from multiple scenarios including conducting a survey without obtaining the requisite approval from the Principal Director General, Director General, Principal Chief Commissioner, or Chief Commissioner as mandated by the proviso to Section 133A. Surveys conducted by officers who are not subordinate to the authorities specified by the CBDT in its order would also constitute unauthorized action. Similarly, surveys conducted without collegium approval in cases where such approval is mandatory under the CBDT framework would be technically unauthorized. Surveys conducted by charges other than Investigation Wings or TDS charges would violate the specific restriction imposed by the amended Section 133A.[9]

The legal challenges arising from unauthorized surveys are significant. Courts have consistently held that compliance with statutory procedures is mandatory and not merely directory. Any survey conducted in violation of the approval requirements would be liable to be quashed as being without jurisdiction. The Supreme Court has emphasized in numerous judgments that jurisdictional conditions precedent must be strictly complied with, and non-compliance renders the subsequent proceedings void. In cases involving unauthorized surveys, taxpayers can challenge the validity of the survey itself through writ petitions before High Courts under Article 226 of the Constitution.

The consequences of conducting unauthorized surveys extend beyond jurisdictional invalidity to questions about the evidentiary value of materials gathered during such operations. Even if materials are impounded or statements are recorded during an unauthorized survey, their admissibility and weight as evidence in subsequent assessment proceedings become highly questionable. The Supreme Court judgment in CIT v. S. Khader Khan & Son established that statements recorded during survey proceedings under Section 133A do not have the same evidentiary value as statements recorded under oath during search operations under Section 132(4). Building upon this principle, statements or materials obtained through unauthorized surveys would have even more tenuous evidentiary status.[10]

The challenges posed by potentially unauthorized surveys have practical implications for both the Department and taxpayers. From the Department’s perspective, there is a risk that significant resources expended in conducting survey operations may be wasted if those surveys are subsequently found to be unauthorized. Assessment proceedings based on unauthorized surveys could be challenged successfully, leading to deletion of additions made on the basis of such surveys. From the taxpayer’s perspective, being subjected to an unauthorized survey represents an infringement of rights without legal sanction, potentially causing business disruption and reputational harm without valid authority.

Judicial Perspectives on Survey Powers and Evidentiary Value

Indian courts have developed substantial jurisprudence regarding the scope, limitations, and evidentiary value of survey operations under Section 133A. The landmark judgment in Commissioner of Income Tax v. S. Khader Khan & Son by the Madras High Court, which was subsequently affirmed by the Supreme Court, established foundational principles governing survey proceedings. The High Court held that Section 133A does not empower any Income Tax Officer to examine any person on oath, and therefore statements recorded under Section 133A have no evidentiary value and cannot by themselves form the basis for additions to income. The Court distinguished between Section 132(4), which specifically authorizes officers to examine persons on oath during search operations with such statements being admissible as evidence, and Section 133A, which contains no such provision for oath-taking.[11]

The Supreme Court upheld this reasoning, observing that the word “may” used in Section 133A(3)(iii) which states that an income tax authority may “record the statement of any person which may be useful for, or relevant to, any proceeding under this Act” clarifies beyond doubt that materials collected and statements recorded during surveys are not conclusive pieces of evidence by themselves. The Supreme Court emphasized that while an admission made during a survey is an important piece of evidence, it cannot be said to be conclusive, and it is open to the person who made the admission to show that it is incorrect. This principle has been consistently followed by various High Courts and the Income Tax Appellate Tribunal in subsequent cases.

The Delhi High Court in CIT v. Dhingra Metal Works followed the S. Khader Khan & Son precedent and held that survey officers are not authorized to administer an oath and record a sworn statement under Section 133A. The Court noted that this is in sharp contrast with Section 132(4) which specifically authorizes an officer to examine a person on oath. The Court further observed that the material collected and statements recorded during surveys clarify beyond doubt that such materials are not conclusive pieces of evidence by themselves. The Chhattisgarh High Court in a recent decision reiterated these principles, holding that additions based solely on statements recorded during survey proceedings cannot be sustained, particularly when the assessee retracts the statement and no independent evidence is brought on record.[12]

Courts have also addressed the issue of conversion of survey operations into search and seizure operations. The Punjab and Haryana High Court examined this issue and held that conversion of a survey action into search is illegal when the survey at residential premises of an assessee is converted into search and seizure without tax authorities recording that the assessee failed to cooperate or without there being suspicion that income had been concealed by the assessee warranting resort to search and seizure. Similarly, the Delhi High Court held that if a survey is converted into search without fulfillment of conditions precedent for initiating search, or without application of mind or satisfaction by the higher authority eligible to initiate search, then the search will be illegal. These judgments underscore the principle that different provisions of the Income Tax Act confer different powers with different procedural safeguards, and one cannot be converted into another without strict compliance with statutory requirements.

The CBDT itself has issued instructions recognizing the limitations on relying solely on statements recorded during surveys. Instruction No. 286/2/2003-IT(Inv.) dated March 10, 2003, specifically states that assessments ought not to be based merely on confessions obtained at the time of search and seizure and survey operations but should be based on evidence and material gathered during the course of such operations or thereafter while framing relevant assessments. This instruction has been consistently referred to by courts when examining additions made solely on the basis of survey statements. The instruction reflects an administrative recognition that statements obtained during surveys, particularly when made under pressure or for buying peace of mind, should not automatically be treated as gospel truth without corroboration.

Implications for Tax Administration and Compliance

The post-Finance Act 2022 framework for Section 133A surveys has significant implications for both tax administration and taxpayer compliance. From an administrative perspective, the collegium approval mechanism introduces additional checks and balances but also creates bureaucratic layers that may slow down investigative actions. The requirement to coordinate between different charges and obtain collegium approvals necessitates more planning and documentation before initiating surveys. This can be beneficial in preventing hasty or ill-conceived survey actions but may also reduce the Department’s ability to respond swiftly to emerging intelligence about tax evasion.

The restriction that surveys can be conducted only as a last resort after exhausting other means of verification represents a significant policy shift toward less intrusive tax administration. This aligns with the broader vision of faceless assessment and minimal physical interface with taxpayers. However, it also places the burden on field officers to demonstrate that they have indeed exhausted other avenues before seeking approval for surveys. The documentation requirements for establishing that surveys are the last resort add to the administrative workload and create potential points of challenge for taxpayers who may argue that adequate alternative measures were not attempted.

For taxpayers, the enhanced procedural safeguards provide greater protection against arbitrary survey actions. The knowledge that surveys require high-level approvals and collegium decisions may deter casual or routine use of survey powers for minor verification purposes. However, these safeguards also create opportunities for procedural challenges. Taxpayers subjected to surveys now have grounds to question whether proper approvals were obtained, whether the collegium mechanism was followed, and whether the last resort condition was satisfied. These challenges can be raised both during the survey itself and subsequently in assessment or appellate proceedings.

The evidentiary challenges arising from the S. Khader Khan & Son line of cases provide taxpayers with strong grounds to contest additions based primarily on survey statements. Taxpayers can retract statements made during surveys and demand corroborating evidence from the Department. This shifts the evidentiary burden and makes it more difficult for the Department to rely on survey findings unless supported by documentary or material evidence discovered during the survey. Tax professionals advising clients should be aware of these protections and assert them effectively when dealing with survey situations.

The interaction between the collegium approval framework and judicial interpretations regarding evidentiary value creates a compound protection for taxpayers. Even if a survey is conducted with proper approvals, the materials gathered still face the evidentiary limitations established by case law. Conversely, if a survey lacks proper authorization, it faces both jurisdictional challenges and evidentiary challenges. This dual layer of protection represents a significant shift in the balance between departmental powers and taxpayer rights.

Regulatory Compliance and Best Practices

Given the complex framework governing Section 133A surveys post-Finance Act 2022, both tax authorities and taxpayers need to adopt careful compliance practices. For tax authorities, the foremost requirement is strict adherence to the approval mechanisms specified in the CBDT orders. Officers seeking to conduct surveys must ensure they obtain approvals from the appropriate authority or collegium as specified for their particular charge. Documentation of the approval process is essential, as this may be subject to scrutiny in subsequent legal challenges. Officers should maintain records showing that alternative means of verification were attempted and exhausted before resorting to survey action, as required by the last resort principle.

Survey teams should be properly constituted with officers from the designated charges as per CBDT orders. For instance, when the Investigation Wing conducts a survey on behalf of another charge, both Investigation Wing officers and officers from the requesting charge must be included in the survey team. The survey authorization should be in writing, clearly specifying the premises to be surveyed, the reasons necessitating the survey, and the approval obtained. During the survey itself, officers must conduct themselves within the boundaries of Section 133A, which permits verification of books, impounding of documents, recording of statements, and inventory of cash and stock, but does not permit removal of cash or valuables from the premises.

When recording statements during Section 133A surveys, officers should clearly inform the persons being questioned that they are not under oath and that the statements being recorded are not on oath. This is important because subsequent disputes often arise regarding the binding nature of survey statements. Officers should avoid creating undue pressure or coercion to obtain statements, as CBDT instructions specifically caution against recording statements under duress. The survey report should be detailed, documenting all actions taken, materials impounded, statements recorded, and relevant findings. This report must be uploaded on the Income Tax Business Application (ITBA) as per the Survey Module, and copies should be provided to officers from requesting charges if applicable.

For taxpayers subjected to surveys, the first step is to verify the authority of the officers conducting the survey. Taxpayers have the right to ask for and examine the survey authorization order to confirm that proper approvals have been obtained. During the survey, taxpayers should cooperate with reasonable requests for production of books and documents, as non-cooperation can lead to adverse consequences and potential conversion to search proceedings. However, taxpayers should be aware of their rights and limitations of survey powers. The survey team cannot remove cash or stock from the premises, cannot examine residential premises unless business is conducted from there, and cannot conduct the survey outside business hours.

When questioned during surveys, taxpayers should exercise caution in making statements. While there is no legal compulsion to answer questions during a survey (unlike during a search under Section 132(4) where examination on oath is authorized), refusing to cooperate may create practical difficulties. Taxpayers should avoid making admissions regarding undisclosed income or surrendering amounts for peace of mind under pressure. If any statements are made under pressure or based on incomplete information, taxpayers should retract such statements at the earliest opportunity through written communication. Given the holding in S. Khader Khan & Son that survey statements are not conclusive and can be retracted, prompt retraction supported by evidence is an important protective measure.

Following a survey, taxpayers should obtain copies of all documents impounded and the statements recorded. If the survey findings are disputed, taxpayers can make written submissions to the assessing officer explaining discrepancies or providing context for materials found during the survey. In cases where taxpayers believe the survey was unauthorized or conducted in violation of procedural requirements, they can challenge the survey through writ petitions in High Courts. Such challenges should be filed promptly, supported by documentation showing the procedural violations. Legal advice from experienced tax counsel should be sought when dealing with survey situations, particularly if significant additions are likely to be made based on survey findings.

Conclusion

The Finance Act 2022 amendments to Section 133A of the Income Tax Act, 1961, along with the subsequent CBDT orders establishing the collegium approval framework, represent a significant evolution in the legal landscape governing tax surveys in India. These changes reflect a policy orientation toward greater accountability, higher-level oversight, and protection against arbitrary use of intrusive investigative powers. The collegium mechanism ensures that survey decisions involve senior officers with broader perspective and experience, reducing the likelihood of hasty or inappropriate survey actions. The last resort principle emphasizes that surveys should be used sparingly, only when less intrusive methods have proven inadequate.

However, these enhanced safeguards have created what we term the collegium approval paradox – a situation where the very mechanisms designed to prevent unauthorized surveys may render many surveys technically unauthorized if the complex procedural requirements are not meticulously satisfied. The multi-layered approval structure, while providing checks and balances, also creates potential grounds for jurisdictional challenges and raises questions about the validity of surveys conducted during transitional periods or without strict adherence to the specified procedures. The requirement for coordination between different departmental charges adds logistical complexity to survey operations.

The judicial developments, particularly the Supreme Court’s affirmation of the Madras High Court judgment in S. Khader Khan & Son, provide an additional layer of protection for taxpayers by establishing that statements recorded during surveys lack the evidentiary weight of statements recorded under oath during searches. This jurisprudence, combined with the procedural safeguards introduced through the Finance Act 2022 amendments, creates a robust framework of taxpayer protections. However, it also creates challenges for tax administration in effectively utilizing survey findings for assessment purposes, as corroborating evidence beyond mere statements becomes essential.

Moving forward, the success of this framework will depend on how effectively it balances the twin objectives of preventing tax evasion through effective investigation and protecting taxpayer rights against arbitrary action. The Income Tax Department will need to develop streamlined processes for obtaining collegium approvals while ensuring that the approval mechanism does not become a merely procedural exercise devoid of substantive oversight. Training and capacity building for officers regarding the proper conduct of surveys and the evidentiary limitations of survey findings will be crucial. Clear documentation practices and adherence to CBDT instructions will be necessary to withstand judicial scrutiny of survey actions and subsequent assessments based on survey findings.

For taxpayers and tax professionals, understanding the procedural requirements for valid surveys and the evidentiary limitations of survey findings is essential for effective representation in survey situations and subsequent proceedings. The framework creates opportunities for challenging unauthorized surveys and contesting additions based solely on survey statements. However, taxpayers should also recognize that properly conducted surveys with adequate corroborating evidence can still result in valid additions, and their best protection lies in maintaining proper books of account and documentary support for all transactions.

The Section 133A framework post-Finance Act 2022 thus represents a nuanced attempt to modernize tax administration while strengthening taxpayer safeguards. Its ultimate effectiveness will be determined by how tax authorities and taxpayers adapt to its requirements and how courts interpret and apply these provisions in specific cases. As with many aspects of tax law, the devil lies in the details of implementation, and careful attention to both the letter and spirit of these provisions will be necessary to achieve the intended balance between effective tax administration and protection of taxpayer rights.

References

[1] Finance Act 2022, Section 133A amendments. Available at: https://taxguru.in/income-tax/latest-amendments-relating-survey-u-s-133a-income-tax-act.html 

[2] CBDT Order F.No. 282/15/2022-IT(Inv-V) dated November 22, 2022. Available at: https://www.taxmann.com/post/blog/cbdt-specifies-income-tax-authorities-for-the-purpose-of-authorisation-of-survey-u/s-133a/ 

[3] Income Tax Act, 1961, Section 133A. Available at: https://www.aubsp.com/section-133a-income-tax-act/ 

[4] Finance Act 2022, amendments to Section 133A Explanation. Available at: https://taxguru.in/income-tax/income-tax-authorities-purposes-section-133a-act.html 

[5] CBDT Order under Section 119 dated November 22, 2022. Available at: https://taxguru.in/income-tax/latest-amendments-relating-survey-u-s-133a-income-tax-act.html 

[6] CBDT Order dated October 19, 2020, superseded by November 2022 order. Available at: https://taxguru.in/income-tax/cbdt-issues-guideline-power-survey-section-133a.html 

[7] CBDT Order F.No. 187/3/2020-ITA-I dated August 13, 2020. Available at: https://taxguru.in/income-tax/cbdt-notifies-officers-survey-section-133a.html 

[8] Analysis of Finance Act 2022 amendments. Available at: https://www.taxmann.com/post/blog/amendments-made-by-the-finance-act-2022-highlights 

[9] Taxation and Other Laws (Amendment and Relaxation of Certain Provisions) Act, 2020. Available at: https://corpbiz.io/learning/income-tax-authority-has-a-power-of-survey-under-section-133a-as-notified-by-cbdt/ 

[10] Commissioner of Income Tax v. S. Khader Khan & Son, (2008) 300 ITR 157 (Madras), affirmed by Supreme Court in (2013) 352 ITR 480. Available at: https://itatonline.org/digest/cit-v-s-khader-khan-son-2012-210-taxman-248-79-dtr-184-254-ctr-228-2013-352-itr-480-sc/ 

[11] Commissioner of Income Tax v. S. Khader Khan & Son, (2008) 300 ITR 157 (Madras). Available at: https://indiankanoon.org/doc/1415109/ 

[12] CIT v. Dhingra Metal Works, 196 Taxman 488 (Delhi); Recent Chhattisgarh High Court judgment. Available at: https://www.taxscan.in/top-stories/statement-recorded-during-survey-has-no-evidentiary-value-chhattisgarh-hc-quashes-additions-on-excess-stock-cash-based-on-sc-decision-1437638 

The post Section 133A of the Income Tax Act Post Finance Act 2022: Survey Approval Framework & Legal Challenges appeared first on Bhatt & Joshi Associates.

Introduction: A Decade-Long Experiment Under Scrutiny

A decade after the enactment of one of India’s most stringent anti-evasion laws, the government has initiated a comprehensive review of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (hereinafter referred to as “the Black Money Act” or “BMA”). This review comes at a critical juncture when legal practitioners, tax experts, and enforcement agencies have raised significant concerns about the Act’s draconian provisions, implementation challenges, and its overlap with the existing Income Tax Act, 1961.​[1]

The Black Money Act was introduced as a flagship reform under Prime Minister Narendra Modi’s administration, fulfilling a key electoral promise to combat tax evasion and bring back illicit wealth stashed in foreign jurisdictions. However, despite its laudable objectives, the Act’s excessively harsh penalty structure and rigid enforcement mechanisms have rendered it counterproductive to its stated goal of encouraging voluntary compliance.​[2]

Historical Context and Legislative Intent

The Genesis of the Black Money Act

The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 came into effect on July 1, 2015, during the early tenure of the Modi government, which had made anti-corruption and the retrieval of black money a central political plank. The Act was enacted under the broader agenda of combating tax evasion and addressing the longstanding issue of unaccounted wealth held by Indian residents in foreign jurisdictions.​[3]

The legislative intent behind the BMA was threefold:

1. Detection and Penalization: To identify and impose penalties on undisclosed foreign income and assets
2. Deterrence: To create a strong deterrent effect preventing future tax evasion
3. Revenue Recovery: To demonstrate the government’s commitment to bringing back black money and increasing tax compliance​​[1][4]

The One-Time Compliance Window

The Act initially provided a one-time compliance opportunity wherein persons holding undisclosed foreign assets could file declarations and regularize their position by paying a penalty at the rate of 100% of the tax payable. This window was designed to encourage voluntary disclosure while simultaneously establishing a framework for strict enforcement thereafter.​

Constitutional Framework and Scope of the Act

Definition of Undisclosed Foreign Income and Assets

The Black Money Act defines “undisclosed foreign income and asset” to include:​

1. Income from a source located outside India which has not been disclosed in tax returns filed
2. Income from a source outside India for which no tax returns have been filed
3. Value of an undisclosed asset located outside India

Critical Legal Observation: The Act’s scope extends beyond mere income to encompass the value of assets themselves, creating a comprehensive net for foreign holdings that may have escaped the purview of the Income Tax Act, 1961.​ [5]

Tax Authorities and Jurisdiction

The relevant tax authorities and their jurisdiction under the BMA are specified as per the Income Tax Act. These authorities are vested with powers of inspection of documents and evidence, with proceedings required to be conducted judicially.​​ [4]

The Punitive Structure: A Critical Analysis

Tax and Penalty Framework

The Black Money Act imposes what many legal practitioners and tax experts have termed an “unsustainable” penalty structure: ​[2]

Tax Liability

• Flat Rate: 30% tax on undisclosed foreign income or assets​​ [3]
• No Exemptions: No deduction, exemption, or set-off of carried forward losses as provided under the Income Tax Act​
• Application: Applicable from Assessment Year 2016-17 onwards

Penalty Structure

• Primary Penalty: 90% of the value of the undisclosed asset​​[4]
• Effective Liability: Combined tax and penalty equals 120% of the undisclosed amount
• Non-filing Penalty: Flat penalty of Rs. 10 lakh for failure to file return​​

Illustrative Example: If a taxpayer has concealed Rs. 1 crore in a foreign bank account:

• Tax liability: Rs. 30 lakh (30%)
• Penalty: Rs. 90 lakh (90%)
• Total liability: Rs. 1.2 crore (120% of concealed amount)

This structure creates an effective liability exceeding the actual undisclosed amount, which critics argue defeats the purpose of encouraging voluntary disclosure.​​ [2]

Criminal Prosecution Provisions

The Act contains stringent criminal prosecution provisions that have been particularly controversial: ​​[4]

Offences and Punishment

Section 49 – Wilful Attempt to Evade Tax:

• Imprisonment: Rigorous imprisonment for a term of 3 to 10 years
• Fine: In addition to imprisonment
• Application: For willful attempt to evade tax, penalty, or interest

Section 50 – Failure to Furnish Return:

• Imprisonment: Rigorous imprisonment for a term of 6 months to 7 years
• Fine: In addition to imprisonment
• Application: For failure to furnish return of income in respect of foreign income or assets​

Critical Legal Issue: The automatic initiation of criminal prosecution proceedings, even for technical or unintentional non-disclosure, has been characterized as “draconian” by various High Courts and legal experts.​​[2]

Core Issues Necessitating Black Money Act Review

Issue 1: Overlap and Inconsistency with Income Tax Act

One of the most significant criticisms of the BMA is its overlap with the Income Tax Act, 1961, creating what legal scholars term “double jeopardy” situations.​​

Specific Areas of Conflict:

1. Differential Tax Computation: The same foreign income may be subject to different tax calculations under the Income Tax Act and the Black Money Act, leading to inconsistent liabilities​[4]
2. Multiple Penalties: Taxpayers face the prospect of penalties under both Acts for the same default, violating the principle against double punishment​​
3. Procedural Confusion: Different assessment procedures, timelines, and appellate mechanisms create confusion and administrative burden​

Judicial Precedent: The Calcutta High Court in a 2019 judgment held that prosecution under the Black Money Act during the pendency of penalty proceedings under the Income Tax Act does not amount to double jeopardy, though this interpretation has been contested by legal practitioners.​

Issue 2: Lack of Discretion and Flexibility

Unlike the Income Tax Act, which provides assessing officers with discretionary powers to consider the facts and circumstances of each case, the Black Money Act mandates automatic imposition of penalties and prosecution.​​[2]

Consequences of Rigidity:

• No distinction between willful evasion and inadvertent oversight
• Inability to consider genuine hardship cases
• Discouragement of voluntary compliance
• Increased litigation burden on courts​​

Practitioner Perspective: “The mandatory nature of penalties under Section 42 and 43 leaves no room for tax officers to exercise judgment, even in cases where the non-disclosure was clearly unintentional or involved minor amounts,” as noted by senior tax practitioners.​

Issue 3: Disproportionate Penalties for Minor Violations

The Act imposes flat penalties regardless of the quantum of undisclosed assets, creating disproportionate outcomes:​ [4]

• Rs. 10 lakh penalty for non-filing of return, even if the undisclosed asset value is Rs. 5 lakh or less (prior to 2024 amendment)
• Mandatory criminal prosecution for even technical violations
• No gradation of penalties based on the severity of the offense

Issue 4: Valuation and Assessment Challenges

Current Market Value vs. Acquisition Value: The Act requires assessment based on current market value of foreign assets, rather than their value at the time of acquisition.​

Illustrative Case: An asset acquired in 2004 for Rs. 1 crore, now worth Rs. 20 crore, attracts penalty on the current Rs. 20 crore value, even though the original non-disclosure was of Rs. 1 crore.​

This approach has been criticized as inequitable and potentially confiscatory in nature.

Issue 5: Implementation and Enforcement Challenges

Despite the harsh provisions, the Act has not achieved its stated objectives in terms of actual revenue recovery:​

• Limited voluntary disclosures due to excessive penalty structure
• Difficulty in establishing beneficial ownership of offshore assets
• Complex international information exchange protocols
• Challenges in asset valuation and verification​​

Recent Legislative Reforms and Relief Measures

Finance Act 2024 Amendments

Recognizing the harsh impact of the BMA, the Finance (No. 2) Act, 2024 introduced significant relief measures effective from October 1, 2024:​ [6]

Key Amendments to Sections 42 and 43:

The amended proviso states that penalty provisions shall not apply to:

• Assets (other than immovable property)
• Where aggregate value does not exceed Rs. 20 lakh
• At any time during the relevant previous year​[6]

CBDT Instruction dated August 18, 2025

The Central Board of Direct Taxes (CBDT), exercising powers under Section 84 of the BMA read with Section 119 of the Income Tax Act, issued clarificatory instructions: ​[7]

Core Directive:

“Prosecution proceedings under Section 49 and/or 50 of BMA, 2015, would not be initiated in cases where penalty under Section 42 and/or 43 of the BMA, 2015 is not imposed or imposable in relation to assets covered under the proviso to aforesaid sections i.e. an asset or assets (other than immovable property) where the aggregate value of such asset or assets does not exceed a value equivalent to Rs. 20 lakh at any time during the relevant previous year.”​

Evolution of Relief Provisions:

​

Important Limitation: These relief measures do NOT extend to immovable foreign property, where any concealment continues to attract both penalty and prosecution.​

The Review Committee: Composition and Mandate

Committee Structure

The government has constituted an internal committee under the leadership of Amal Pusp, Principal Chief Commissioner of Income Tax for Uttar Pradesh (East) region to undertake a comprehensive review of the Black Money Act. ​​[1]

A parallel committee under Chief Commissioner Jayaram Raipura has been established to examine ways to improve the quality of scrutiny assessments.​

Committee Composition

The review panel comprises: ​[4]

1. Senior officers from the Income Tax Department
2. Representatives from the Central Board of Direct Taxes (CBDT)
3. Officials from the Ministry of Finance
4. Legal experts specializing in tax law
5. Representatives from enforcement agencies dealing with cross-border financial information exchange

Terms of Reference

The committee has been tasked with examining:​​ [4]

1. Interplay Analysis: Examining the interaction between the BMA and the Income Tax Act, identifying areas of convergence and divergence
2. Scenario Assessment: Envisaging different scenarios of taxability and their legal implications
3. Conflict Identification: Identifying points of conflict with Income Tax regulations
4. Implementation Challenges: Analyzing challenges faced in invoking and enforcing the Act
5. Data Management: Addressing the handling of the massive volume of data received from various countries under information exchange agreements
6. Penalty Rationalization: Reviewing harsh clauses including excessive penalties, retrospective tax assessment rates, and automatic criminal prosecution provisions

Potential Reform Measures Under Consideration

1. Penalty Rationalization

Proposed Approach: Introduction of graded penalty structure with ceiling limits:​​ [2]

• Replace the current 90% flat penalty with a tiered structure (e.g., 1x to 2x of tax liability)
• Penalty proportionate to the quantum and duration of concealment
• Differential treatment for first-time and repeat offenders

2. Decriminalization of Minor Offenses

Proposed Approach: Elimination of criminal prosecution for technical or minor violations:​​ [2]

• Restrict criminal prosecution to cases of willful and substantial evasion
• Convert minor offenses into civil defaults with monetary penalties
• Introduction of threshold limits for criminal prosecution

Precedent: Similar approach adopted in GST law where compounding of offenses is permitted for amounts below specified thresholds.

3. Valuation Methodology Reform

Proposed Approach: Shift from current market value to acquisition cost for penalty calculation:​ [4]

• Base penalties on the value of assets at the time of acquisition
• Apply indexation benefits for inflation
• Reduce the punitive impact on long-held assets that have appreciated

4. Voluntary Disclosure Window

Proposed Approach: Introduction of a time-bound voluntary disclosure scheme:​​[2][4]

• One-time opportunity for taxpayers to come forward
• Reduced penalty rates (e.g., 50% of tax liability)
• Immunity from criminal prosecution
• Clear sunset clause to maintain deterrent effect

Precedent: The Income Declaration Scheme, 2016 and various amnesty schemes under the Income Tax Act.

5. Harmonization with Income Tax Act

Proposed Approach: Elimination of overlaps and alignment of provisions:​​[4]

• Unified tax computation methodology
• Prevention of double penalties for the same default
• Consistent appellate and dispute resolution mechanisms
• Clear demarcation of applicability between the two Acts

6. Procedural Safeguards

Proposed Approach: Introduction of due process protections:​

• Mandatory pre-prosecution notice providing opportunity to explain
• Right to personal hearing before penalty imposition
• Principles of natural justice to be expressly incorporated
• Burden of proof standards to be clarified

Legal Principle: As observed in various judgments, “penalties, being in the nature of civil consequences, must still adhere to principles of proportionality and fairness.”

7. Discretionary Powers to Assessing Officers

Proposed Approach: Balanced discretion with accountability:​​ [2]

• Authority to waive or reduce penalties in genuine hardship cases
• Guidelines for exercise of discretion to prevent arbitrary action
• Supervisory review mechanism
• Documented reasoning for decisions

Implications of the Review: Multi-Stakeholder Perspective

For Taxpayers and Legal Practitioners

Positive Implications:

1. Reduced Compliance Burden: Rationalized penalties may encourage voluntary disclosure and reduce litigation
2. Greater Certainty: Clearer guidelines on interaction between BMA and Income Tax Act
3. Proportionate Penalties: Relief for unintentional or minor violations
4. Due Process: Enhanced procedural safeguards protecting taxpayer rights​​

Concerns:

1. Potential for Abuse: Relaxed provisions may be exploited by willful evaders
2. Moral Hazard: Differential treatment between early and late compliers may create perception of unfairness
3. Revenue Impact: Reduced penalties may affect government revenue collections​

For Tax Administration

Positive Implications:

1. Improved Compliance: More taxpayers likely to come forward voluntarily
2. Reduced Litigation: Fewer disputes reaching courts and tribunals
3. Efficient Resource Allocation: Focus enforcement on serious cases
4. International Alignment: Harmonization with global best practices​​

Challenges:

1. Administrative Complexity: Implementing graded penalty structures
2. Training Requirements: Officers need guidance on exercising discretion
3. Monitoring Mechanisms: Ensuring consistent application across jurisdictions

For the Broader Legal Framework

Systemic Benefits:

1. Constitutional Validity: Addressing concerns about disproportionate and potentially unconstitutional penalties
2. Judicial Efficiency: Reduced burden on High Courts and tribunals
3. Policy Coherence: Better integration with overall tax policy objectives
4. International Cooperation: Enhanced credibility in bilateral tax agreements​​

International Comparisons and Best Practices

Global Approach to Foreign Asset Disclosure

United States – FATCA:

• Penalties range from $10,000 to $50,000 for non-willful violations
• Criminal prosecution reserved for willful evasion cases
• Offshore Voluntary Disclosure Programs (OVDP) with reduced penalties

United Kingdom – Offshore Disclosure Facilities:

• Tiered penalty structure based on disclosure timing
• Civil investigation of fraud for serious cases
• Maximum penalty generally 200% of tax liability

Australia – Offshore Voluntary Disclosure Initiative:

• Penalty reductions up to 90% for voluntary disclosure
• Criminal prosecution only in egregious cases
• Emphasis on administrative resolution

Key Takeaway: Most developed jurisdictions adopt a balanced approach with proportionate penalties and emphasis on voluntary compliance rather than purely punitive measures.​​ [2] [4]

Critical Analysis: Balancing Deterrence and Compliance

The Deterrence Paradox

The Black Money Act represents a classic case of the “deterrence paradox” in tax policy: ​​[2] [4]

Initial Impact (2015-2017):

• Strong deterrent effect on potential evaders
• High-profile cases generated publicity and fear

Long-term Consequences (2017-2025):

• Counterproductive for voluntary compliance
• Pushed evasion underground rather than encouraging disclosure
• Created adversarial relationship between taxpayers and tax administration
• Generated extensive litigation without commensurate revenue recovery

The Compliance Equation

Optimal tax compliance requires balancing:

1. Deterrence: Sufficient penalties to discourage evasion
2. Proportionality: Penalties commensurate with the offense
3. Certainty: Clear rules and predictable outcomes
4. Fairness: Distinction between willful and inadvertent violations​​

Current Status: The BMA scores high on deterrence but fails on proportionality, leading to overall suboptimal compliance outcomes.[4]

Judicial Approach and Evolving Jurisprudence

High Court Observations

Several High Courts have expressed concerns about the harsh provisions of the BMA, though no provision has been struck down as unconstitutional.​​ [2]

Common Judicial Themes:

1. Emphasis on distinguishing between technical and substantive violations
2. Application of principles of natural justice even in summary proceedings
3. Consideration of proportionality in penalty imposition
4. Recognition of genuine hardship cases

Tribunal Decisions

The Mumbai Income Tax Appellate Tribunal in a significant 2023 decision upheld penalty under Section 43 even where income from foreign assets was declared, reasoning that the penalty is for non-disclosure in Schedule FA, not for undisclosed income per se.​ [5]

Key Holding:

“The provisions of Section 43 of the BMA do not provide any room not to levy a penalty even if the foreign asset is disclosed in the books, because the penalty is levied only on the non-disclosure of foreign assets in Schedule FA.”​

This strict interpretation highlights the Act’s focus on procedural compliance over substantive tax evasion, a distinction that the review committee may need to address.

Practical Guidance for Legal Practitioners

Current Advisory Framework

For Clients with Undisclosed Foreign Assets:

1. Immediate Disclosure: Advise voluntary disclosure under revised threshold provisions (Rs. 20 lakh) introduced in Finance Act 2024​
2. Asset Categorization: Carefully distinguish between movable and immovable property (immovable property not covered by recent relief measures)​[7]
3. Documentation: Maintain comprehensive records of:
   • Source of funds for foreign asset acquisition
   • Annual income/gains from foreign assets
   • Tax payments in foreign jurisdictions
   • Claims for foreign tax credit​
4. Schedule FA Compliance: Ensure meticulous completion of Schedule FA (Foreign Assets) even if income is disclosed elsewhere in the return​

Litigation Strategy

For Ongoing Proceedings:

1. Penalty Appeals: Challenge disproportionate penalties on constitutional grounds of Article 14 (equality) and Article 19(1)(g) (right to profession)
2. Prosecution Challenges: [7]
   • Argue for pre-prosecution notice and opportunity to be heard
   • Distinguish between civil defaults and criminal offenses
   • Cite CBDT instructions dated August 18, 2025 for cases below Rs. 20 lakh threshold​
3. Double Jeopardy Defense: While the Calcutta High Court has ruled against this argument, it remains a viable ground for appeal, particularly in light of the review committee’s mandate​

Due Diligence in Cross-Border Transactions

Preventive Compliance Measures:

1. NRI Clients: Enhanced scrutiny of foreign assets and income
2. Business Clients: Review transfer pricing documentation for consistency with foreign asset disclosures
3. HNI Clients: Comprehensive wealth mapping including offshore structures
4. Compliance Calendar: Annual Schedule FA review and disclosure verification

Anticipated Timeline and Implementation

Review Process Timeline

Phase 1 (October 2025 – March 2026): Committee examination and stakeholder consultations​[1]

Phase 2 (April – June 2026): Draft recommendations and inter-ministerial review

Phase 3 (July – December 2026): Legislative drafting and parliamentary approval

Phase 4 (2027 onwards): Implementation and transitional provisions

Note: This is a speculative timeline based on typical legislative processes for significant tax reforms.

Expected Legislative Vehicle

Amendments to the BMA are likely to be introduced through:

1. Finance Bill 2026 or 2027: Most probable route
2. Standalone Amendment Bill: For comprehensive restructuring
3. Subordinate Legislation: For procedural modifications under existing framework​

Conclusion: Toward a Balanced Framework

The government’s decision to review the Black Money Act represents a mature acknowledgment that excessively harsh laws, while creating initial deterrence, ultimately prove counterproductive to the goals of tax compliance and revenue collection.​​

Key Takeaways for Stakeholders

For Policymakers:
The challenge lies in recalibrating the Act to maintain its deterrent effect while eliminating provisions that discourage voluntary compliance. International best practices suggest that proportionate penalties, procedural safeguards, and periodic amnesty windows achieve better long-term outcomes than purely punitive approaches.

For Tax Practitioners:
The review provides an opportunity to engage constructively with the process through bar associations and professional bodies. Detailed case studies demonstrating the Act’s unintended consequences on genuine taxpayers will be crucial inputs for the committee.

For Taxpayers:
The current juncture presents a strategic window. Those with undisclosed foreign assets should consider voluntary disclosure before the review process concludes, as subsequent amendments may introduce stricter “no further opportunity” clauses to maintain credibility of the reformed framework.

The Path Forward

A reformed Black Money Act should embody the following principles:

1. Proportionality: Penalties commensurate with the quantum and nature of the offense
2. Progressivity: Graded consequences from civil penalties to criminal prosecution
3. Procedural Fairness: Adequate opportunity to contest allegations before punitive action
4. Clarity: Unambiguous demarcation from Income Tax Act provisions
5. Flexibility: Discretionary powers balanced with accountability mechanisms
6. Pragmatism: Recognition that tax compliance is achieved through carrots as much as sticks​​

As the review committee deliberates, the legal fraternity, tax professionals, and civil society must engage actively to ensure that the reformed framework serves the twin objectives of combating tax evasion while respecting constitutional guarantees of fairness and proportionality. The outcome of Black Money Act review will significantly shape India’s approach to international taxation and asset disclosure for the coming decade.

References

[1] Black Money Act 2.0: Government Panel to Review Law, Look for Measures to Align it with I-T Act Available at: Black Money Act 2.0: Government to Review Law After a Decade – Outlook Business

[2] India Rethinks Its Black Money Law: Is a Softer Approach the Answer? Available at: India Rethinks Its Black Money Law: Is a Softer Approach the Answer? – Dainik Jagran English

[3] The Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 Available at: The Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015

[4] Black Money act under review; What’s the big plan Available at: Black Money act under review; What’s the big plan? Ankit Agrawal Study IQ

[5] India – Mumbai Tax Tribunal upholds penalty under Black Money Act for non-disclosure of assets outside India Available at: India – Mumbai Tax Tribunal upholds penalty under Black Money Act for non-disclosure of assets outsi – BDO

 [6] CBDT Amends Black Money Act Instructions to Exempt Minor Foreign Assets Available at: CBDT Amends Black Money Act Instructions to Exempt Minor Foreign Assets

[7] Select black money holders to get relief: Income tax dept. to not not apply penalty and prosecution in these situations Available at: Select black money holders to get relief: Income tax dept. to not not apply penalty and prosecution in these situations – CAalley.com

[8] CBDT’s New Directive on Black Money Act: A Pragmatic Shift from Prosecution to Proportionality  Available at: CBDT’s New Directive on Black Money Act

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