Finance Bill 2025 amends Section 132(8) of the Income Tax Act, 1961, to modify the time limit for retaining seized books of account or other documents after the completion of assessment or reassessment. Previously, the Assessing Officer (AO) could retain such documents for 30 days from the date of the assessment order. The revised provision allows the AO to retain these documents for up to one month from the end of the quarter in which the assessment or reassessment order is passed. This change is made to accommodate cases where the assessment orders for different assessees in group cases may be passed at different times, even though they relate to the same seized documents. The conditions for retaining the documents beyond this period, including the requirement for written reasons from the AO and prior approval from higher authorities, remain unchanged.
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- FAQs Budget 2025: Time limit for retention of seized books of account or other documents rationalized
- Q.1 Why is retention of seized books of account or other documents required after completion of assessment or reassessment in a particular case as per Section 132(8) of Income-tax Act,1961?
- Q.2 As per section 132(8) of the Income Tax Act,1961, what was the time-limit for retention of seized books of account or other documents by the Assessing Officer (AO) prior to Finance Bill 2025?
- Q.3 What amendment has been made in section 132(8) of Income Tax Act, 1961 in Finance Bill 2025?
FAQs Budget 2025: Time limit for retention of seized books of account or other documents rationalized
Q.1 Why is retention of seized books of account or other documents required after completion of assessment or reassessment in a particular case as per Section 132(8) of Income-tax Act,1961?
Ans. Retention of seized books of account or other documents is required because in the course of search assessment proceedings in group cases, the assessment orders of one assessee may be passed earlier than the assessment orders of another assessee to which the seized books of account or other documents relate.
Q.2 As per section 132(8) of the Income Tax Act,1961, what was the time-limit for retention of seized books of account or other documents by the Assessing Officer (AO) prior to Finance Bill 2025?
Ans. Before Finance Bill, 2025, AO could retain seized books of account or other documents for 30 days from the date of the assessment or reassessment or recomputation order. The conditions for recording the reasons in writing by the AO for retaining the seized books of account or other documents for additional period and prior approval from higher authorities in this regard shall continue to apply as earlier.
Q.3 What amendment has been made in section 132(8) of Income Tax Act, 1961 in Finance Bill 2025?
Ans. Section 132(8) of Income Tax Act, 1961 has been amended to provide that the Assessing Officer can retain seized books of account or other documents for a period of one month from end of the quarter in which assessment or reassessment or recomputation order has been made. The conditions for recording the reasons in writing by the AO for retaining the seized books of account or other documents for additional period and prior approval from higher authorities in this regard shall continue to apply as earlier.
