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Repair Windows errors before they cause bigger problemsFix Now →Scan for outdated or missing drivers - takes under a minuteDriver Scan →Clear out junk files and repair common Windows errorsFree Scan →Section 153C of India’s Income-tax Act, 1961 is a legacy procedure for assessing a person who was not the subject of a search when specified material found in that search—or in a requisition—appears relevant to that person’s income. It does not apply under the 1961 Act to searches initiated, or requisitions made, on or after 1 April 2021. The search date, the material and the statutory notices are therefore central to understanding a Section 153C notice.
What Section 153C means
Section 153C is titled “Assessment of income of any other person.” It addresses a situation where a search under section 132, or a requisition under section 132A, concerns one person but specified material found or obtained through that process is considered relevant to another person. The second person is the “other person” for purposes of the provision.
The material described in the 1961 Act includes money, bullion, jewellery or another valuable article or thing, as well as books of account and documents. The section does not make the existence of a third party’s papers sufficient by itself: the statutory conditions include an Assessing Officer’s satisfaction that the material has a bearing on determining the other person’s total income. The material is then handed to the Assessing Officer having jurisdiction over that person, who may issue notice and assess or reassess income if the conditions are met. Income Tax Department, Income-tax Act, 1961 (2025 text).
Does Section 153C apply to searches after 1 April 2021?
No. The 1961 Act’s Section 153C text expressly excludes searches initiated under section 132, or requisitions made under section 132A, on or after 1 April 2021. It states: “Nothing contained in this section shall apply in relation to a search initiated under section 132 or books of account, other documents or any assets requisitioned under section 132A on or after the 1st day of April, 2021.”
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That cutoff means Section 153C should not be described as the route for a new search or requisition on or after that date. A notice referring to Section 153C may still concern an earlier search; the date of the search or requisition, rather than simply the date the notice arrives, is a key starting point.
Why Section 153C can appear in a current notice
India’s Income-tax Act, 2025 repealed the 1961 Act, but its transition rule preserves the repealed Act’s provisions for proceedings connected with a search or requisition that took place before the new Act commenced. Those proceedings continue as though the new Act had not been enacted. This is why a legacy Section 153C proceeding can remain relevant after repeal. See the Income-tax Act, 2025.
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The newer Act’s Chapter XIV-B covers search cases. Section 158BD, “Undisclosed income of any other person,” provides for an Assessing Officer to proceed against another person under section 158BC when its statutory condition is met. This is useful context for the newer framework, but it is not simply a renumbering of Section 153C or an automatic substitute for it in an older case. Income-tax Act, 2025.
What material and officer action does the provision require?
The statutory wording distinguishes among different connections between material and the other person. Some assets must “belong to” that person; books or documents may “pertain to” that person, or information in them may “relate to” that person. In addition, the Assessing Officer must be satisfied that the material has a bearing on determining that person’s total income.
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In broad terms, the process described by Section 153C involves material found in the search or obtained through requisition being considered by the relevant officer, a satisfaction that the statutory connection and income-bearing condition are met, and handover to the Assessing Officer with jurisdiction over the other person. That officer may then issue the applicable notice and undertake assessment or reassessment. A third party’s name appearing in a document does not, by itself, establish that all statutory conditions have been fulfilled.
Which assessment years can be covered?
The 1961 Act’s Section 153C text refers to the six assessment years immediately preceding the assessment year relevant to the previous year in which the search or requisition occurred, as well as relevant assessment year or years referred to in section 153A. This is the statutory period stated in that version of the law, not a study result or a general rule for searches on or after 1 April 2021. Which years are relevant in a particular matter depends on the applicable statutory version and the dates and procedural history of the case. Income Tax Department, Income-tax Act, 1961 (2025 text).
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to read a Section 153C notice
A notice cannot be assessed from its section number alone. The statutory sources explain the framework but do not settle the outcome of an individual taxpayer’s matter. To understand what may apply, identify and review the following facts and records:
- Search or requisition date: establish whether it occurred before or on/after 1 April 2021, and whether the 2025 Act’s transition rule is relevant.
- Material identified: determine what asset, book, document or information is said to belong to, pertain to or relate to you.
- Satisfaction and income connection: examine the recorded basis for treating the material as having a bearing on determining your total income.
- Handover and jurisdiction: establish whether the material was handed to the Assessing Officer having jurisdiction over you.
- Assessment years and notices: check the years named and the procedural notices issued, against the statutory version applicable to the search and the case record.
The applicable response, procedural deadlines and any available challenge depend on the notice and the full record; the statutory framework alone does not establish one universal deadline or outcome. For a live matter, have a qualified Indian tax professional review the search or requisition dates, notice, material and procedural history.
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