The search and survey operations conducted by the income tax department, commonly known as income tax raids. Some reason for fear being heavy tax and penalty payments, possible devastating impact on the business, Mental harassment faced during such raids etc. Most of the fears for such operations are valid and the impact can be less if the assessee has reasonable knowledge about various aspects relating to the raids.

In context of the act, the term ‘survey’ means to collect information and data for the purpose of the Act on the spot, at the place of business or profession. Survey are consider to be milder than search procedures mainly because this procedure does not involve seizure of cash or jewellery or stock or other valuable things.

POWERS OF INCOME TAX AUTHORITIES

Power Relating To Discovery, Production of Evidence

The Assessing Officer, The Joint Commissioner, the chief commissioner has the powers as are provided in a court under the code of civil procedure, 1908, when trying to suit for the following matters:

• Discovery and inspection

• To enforce any person for attendance, and examining him on oath

• Issuing commissions and

• Compelling the production of books of account and other document.

Power of Search and Seizure

Requisition of Books of account

Power to call for information

Power of survey

Collection of information

DO AND DON’TS DURING THE RAIDS

1. Maintain proper and updated books of accounts

2. Ensure that the benefits of all the reliefs are availed

3. Copies of important documents like returns of income/wealth filed, assessment orders, tax payment challans should be readily available.

4. Investments made in assets should be properly accounted and supporting, evidence should be available to substantiate the investment made.

5. Statements records at the time of search are very crucial. One should be very cautious and careful while answering the question and the person questioned should not panic.

6. It is important to be cooperative and cordial with the search and survey teams.