Tax administrationCentral

Section 256 of Income Tax Act 2025

The Principal Director General or Director General or Principal Director or Director, the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner and the Joint Commissioner shall be competent to make any enquiry under this Act, and for this purpose, shall have all the powers that an Assessing Officer has under this Act in relation to the making of enquiries.

Summary

Certain high-ranking tax authorities are empowered to directly conduct any enquiry under the Income Tax Act.
To carry out these enquiries, these senior officials possess all the legal powers that an Assessing Officer has under the Act for making enquiries.
The specific senior authorities granted this power are the Principal Director General, Director General, Principal Director, Director, Principal Chief Commissioner, Chief Commissioner, Principal Commissioner, Commissioner, and Joint Commissioner.

Practical examples

1On June 10, 2026, a Principal Commissioner of Income Tax in Mumbai suspects large-scale tax evasion in a group of companies. Instead of assigning it to a junior Assessing Officer, he directly initiates an enquiry. He exercises the Assessing Officer’s power to summon company directors, requiring them to produce bank statements of transactions from May 1 to May 30, 2026, totaling ₹2,00,00,000.

2On December 1, 2026, a Joint Commissioner is reviewing high-value property purchases. She decides to directly conduct an enquiry on an individual, Mr. Vikram Mehta, regarding an unexplained ₹80,000,000 transaction. She uses the direct inquiry powers of an Assessing Officer to demand detailed fund sources from Vikram's bank.

FAQ

1. Who has the power to make enquiries under Section 256?

The Principal Director General, Director General, Principal Director, Director, Principal Chief Commissioner, Chief Commissioner, Principal Commissioner, Commissioner, and Joint Commissioner.

2. What powers do these senior officials have when conducting an enquiry under Section 256?

They possess all the powers that an Assessing Officer has under the Act in relation to making enquiries.

Test yourself

Q1.Under Section 256, what powers are vested in a Principal Director General or Commissioner when making enquiries?

Q2.Which of the following high-ranking officers is NOT specifically mentioned in Section 256 as competent to make enquiries?

Q3.What type of activity does Section 256 specifically authorize senior tax officials to conduct?

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