Raid is the term that is often used by common people for income tax survey and search. Understanding survey and search in the income tax act have become the need of the hour, as the business tends to grow.
Search and survey are the terms used in Income Tax Act, and Raid is nowhere mentioned here. Survey and search in the income tax act are different from each other, and here you can know what the differences are.
Difference between Survey and Search in the Income Tax Act
When the authorities keep sending notices to the assessee and the assessee do not comply with the payment of income tax repeatedly, then a search is carried out. On the other hand, a survey is conducted to discover, if the assessee who is in the limelight does not pay the taxes rightly. This helps them to gather all the required information on the spot. When conducting a survey, the authorities can enter into only the business and premises that are related to your profession. In a search, there are no restrictions of premises that are present, and the IT authorities can enter any place of your ownership or stay.
In a survey, only the account books can be confiscated by the authorities, but everything from money, jewellery and other valuable articles can be confiscated when a search is done. The materials that are gathered can be used by the department, for any other proceedings of your case.
While a survey does not entitle the authorities to physically examine the people present on the premises, but during a search, the people inside the premises and those who enter and leave the premises can be physically examined.
What are your rights during the survey?
When you are a part of the survey and search in the income tax act, there are a few rights you are entitled to.
- Always ask for the identity of IT officers before they start the survey and then verify that the name and address of inspector and premises are correctly mentioned.
- You can give assistance in making the account books and documents inventory.
- Obtain the copies of statements and inventories after verifying its genuineness.
- The commencement can be only during the regular working hours of the business and it should be completed on the same day.
- Do not hide or conceal or give incorrect statements to the authorities.
- For disclosing the material facts, you can take the advice of the Tax consultant/CA.
- Get a copy of the statement which the Authority has recorded during the survey.
- During a search, children can go to school, and the women can be examined only by the lady officers. Also, if you belong to the community where women are not allowed to remain before an unknown person, then women can walk out.
- Also, you can call a doctor, if required. You can also take rest when the search goes on for hours, even more than 30 hours.
- During a survey, no authorities can break open the locker or door. The owner of the premises does not need not be present during the process or for it to commence. Ensure that no inaccurate details are given, which is crucia