Section 132 → Section 146
Search and seizure
Quick Answer
Section 132 of the Income Tax Act, 1961 (Search and seizure) corresponds to Section 146 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 132
Section 132 of the 1961 Act sets out the rules on search and seizure. The 'Raid' section. Allows authorized officers to enter, search premises, break open lockers, and seize unaccounted money, bullion, jewelry, and books.
From 1st April 2026, the same subject sits at Section 146 of the Income-tax Act, 2025 — retained and renumbered as Section 146 of the Income-tax Act, 2025. Retained and modernized. Specifically empowers the cloning of hard drives, cloud servers, and confiscation of hardware wallets containing Virtual Digital Assets (Crypto).
For Section 132, the practical impact is rated Very High. The most draconian and powerful section in the Income Tax Act.
Sec 132
Provision Summary
The 'Raid' section. Allows authorized officers to enter, search premises, break open lockers, and seize unaccounted money, bullion, jewelry, and books.
Sec 146
Provision Summary
Retained and modernized. Specifically empowers the cloning of hard drives, cloud servers, and confiscation of hardware wallets containing Virtual Digital Assets (Crypto).
Key Changes & Highlights
- Authorized officers can legally force the assessee to provide passwords and biometric unlocks for digital devices during a search.
Related Sections
Frequently Asked Questions
What is Section 132 of the Income Tax Act, 1961 about?
Section 132 of the Income Tax Act, 1961 covers search and seizure. The 'Raid' section. Allows authorized officers to enter, search premises, break open lockers, and seize unaccounted money, bullion, jewelry, and books.
Which section replaces Section 132 in the Income-tax Act, 2025?
Section 132 of the Income Tax Act, 1961 maps to Section 146 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained and modernized. Specifically empowers the cloning of hard drives, cloud servers, and confiscation of hardware wallets containing Virtual Digital Assets (Crypto).
What is the impact of the change to Section 132 under the new tax code?
The transition impact for Section 132 is rated Very High. The most draconian and powerful section in the Income Tax Act.
What should I watch out for when Section 132 moves to the 2025 code?
Authorized officers can legally force the assessee to provide passwords and biometric unlocks for digital devices during a search. These points are specific to Section 132 (Search and seizure).
Disclaimer: This mapping of Section 132 (Search and seizure) to Section 146 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 132 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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