The Income Tax Department has introduced Draft Form No. 86, a proposed format for issuing a Warrant of Authorisation under Section 248(1) of the Income tax Act, 1961 and the Income Tax Act, 2025.
The draft form outlines the legal framework and procedural authority for requisitioning books of accounts, documents, computer systems, and assets that have been taken into custody by another officer or authority and are considered relevant to income-tax proceedings.
Key Highlights of Draft Form No. 86
According to the draft document, the warrant may be issued where the approving authority has reason to believe that:
1. A summons or notice was issued under:
- Section 131(1) of the Income-tax Act, 1961
- Section 142(1) of the Income-tax Act, 1961
- Section 246(1) of the Income-tax Act, 2025
- Section 268(1) of the Income-tax Act, 2025
and the concerned person has failed to produce the required books of account, documents, or electronic information.
2. Relevant books of accounts, documents, or computer systems useful for income-tax proceedings have been taken into custody by another authority, and there is reason to believe the person concerned would not produce them voluntarily.
3. Assets seized and held in custody represent income or property that has not been, or would not have been, disclosed under the provisions of the Income-tax Act.
Authority Empowered Under the Draft
The draft form authorises senior income-tax officials, including:
- Additional Director
- Additional Commissioner
- Joint Director
- Joint Commissioner
- Deputy Director
- Deputy Commissioner
- Assistant Director
- Assistant Commissioner
- Income-tax Officer
to require the concerned officer or authority to deliver the assets, books, documents, or electronic systems.
The warrant must be issued by an Approving Authority, duly signed and sealed.
Significance of Draft Form No. 86
The introduction of Draft Form No. 86 signals a move toward greater procedural clarity and alignment between the Income-tax Act, 1961 and the proposed Income-tax Act, 2025.
Key implications include:
- Strengthening enforcement mechanisms
- Providing legal backing for inter-departmental requisition of seized materials
- Covering digital and electronic records explicitly
- Ensuring compliance in cases of non-cooperation
The draft also reflects the government’s continued emphasis on tightening compliance frameworks while modernising tax administration processes, especially in the context of electronic data and digital financial records.
What Taxpayers and Professionals Should Note
Tax professionals, chartered accountants, and businesses should carefully examine the scope of Section 248(1) under the new Income-tax Act, 2025 framework. The expanded reference to electronic systems and digital information indicates that non-production of digital records may trigger stricter enforcement actions.
Stakeholders are advised to stay updated on further notifications and the finalisation of Form No. 86, as it may have practical implications during assessments, investigations, and proceedings involving undisclosed income or assets.
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