Draft Income Tax Rule 151, 152, 153 153, 154, 155, 156 – Release of Remaining Assets (Sec 250), Distraint & Sale, Information Form (Sec 254(1)), Disclosure of Assessee Information (Sec 258(2)), Prescribed Income-Tax Authority (Sec 259)
Rules 152 to 156 of the Draft Income-tax Rules, 2026 prescribe detailed procedural mechanisms relating to release of assets, recovery proceedings, furnishing of information, and designation of authorities under the Act. Rule 152 provides that once liabilities under section 250(1) are discharged, any remaining seized assets or their proceeds must be immediately returned to the person from whose custody they were seized, in the presence of two respectable witnesses, ensuring procedural fairness and transparency. Rule 153 governs distraint and sale of movable property by an Assessing Officer or Tax Recovery Officer, mandating that such actions be carried out, as far as possible, in the same manner as attachment and sale of movable property through actual seizure, with relevant provisions of rule 225 applying. Rule 154 specifies that information required under section 254(1) must be furnished in Form No. 87. Rule 155 lays down the framework for disclosure of information relating to an assessee under section 258(2), prescribing Forms No. 88 to 91 for application, furnishing of information, intimation where assessment is incomplete, or refusal on public interest grounds. Rule 156 designates the prescribed income-tax authority under section 259 as an officer not below the rank of Assistant Commissioner of Income-tax, duly authorised by the Central Board of Direct Taxes. Together, these provisions streamline procedural compliance and formalise documentation requirements under the Act.
Extract of Rule No. 152, 153, 1533, 154, 155, 156 of Draft Income-tax Rules, 2026
Rule 152
Release of remaining assets under section 250 of the Act.
Any assets or proceeds thereof which remain after the liabilities referred to in section 250(1) are discharged shall be forthwith made over or paid to the person, from whose custody the assets were seized, in the presence of two respectable witnesses.
Rule 153
Distraint and sale
Where any distraint and sale of movable property are to be effected by any Assessing Officer or Tax Recovery Officer authorised for the purpose, such distraint and sale shall be made, as far as may be, in the same manner as attachment and sale of any movable property attachable by actual seizure, and the provisions of rule 225 relating to attachment and sale shall, so far as may be, apply in respect of such distraint and sale.
Rule 154
Form of information under section 254(1) of the Act.
The information required to be furnished under section 254(1) shall be in Form No. 87.
Rule 155
Disclosure of information related to assesses under section 258(2) of the Act.
(1) The application made to the Chief Commissioner or Commissioner under section 258(2) of Income Tax Act 2025 for information relating to an assessee in respect of any assessment made either under the Income Tax Act 2025 or under the Income Tax Act, 1961 shall be in Form No. 88.
(2) The information under section 258(2) shall be furnished by the Chief Commissioner or Commissioner in Form No. 89.
(3) Where it is not possible for the Chief Commissioner or Commissioner to furnish the information asked for by the applicant under section 258(2) owing to the fact that the relevant assessment has not been completed, he shall inform the applicant in Form No. 90.
(4) Where the Chief Commissioner or Commissioner are satisfied that it is not in the public interest to give or cause to be given the information asked for, he shall intimate the fact to the applicant in Form No. 91.
Rule 156
Prescribed income-tax authority under section 259 of the Act.
The prescribed income-tax authority under section 259 shall be an income-tax authority not below the rank of Assistant Commissioner of Income-tax who has been authorised by the Central Board of Direct Taxes to act as such authority for the purposes of that section.
