Difference between Search and Survey - Income Tax raid

Often people get confused with the word search and survey so it becomes important to understand when search is conducted and when survey is conducted.

A Search is generally conducted when there is continuous non-compliance on part of the assesses to attend to the summons received from the department or showing negligence towards the IT notices or where the authorities has a clue of undisclosed Income including possession of cash, jewellery, bullion or other valuable things.

A Survey on the other hand is a Investigative procedure carried out by the income tax department to ascertain the actual income earned by a taxpayer for a financial year through obtaining information by on site review.

Following are the differences between the two:

1. In a survey, the income tax authorities have a right to enter only those places which are deemed to be your place of business or profession, whereas in a search operation, they can search any place including your residential premises, vehicle, or any other place, without any restrictions of whatsoever nature, which they believe is required to be searched.

2. During a survey, the authorities can only impound your books of accounts whereas in a search operation, the power of seizure can be exercised to seize not only the books of accounts but also money, bullion, jewellery or other valuable articles (there are some exceptions to it one of which is stock-in-trade)

3. It should be noted a person cannot be physically searched during the course of a survey although physical inspection of all the members present at the premises, including the ones who are about to leave or about to enter, is permitted in a search

4. The right of recording the statements made by the assessee is given to the officers in a survey In both the operations, the officers are authorized to record the statement of an assessee or any other relevant person; however, in the case of a search operation a statement made by the assessee can also be taken on oath which has severe implications. It may happen that even where the assessee has done something

transparently and genuinely, his inadvertent remarks can create a situation for his own-self; therefore it is extremely advisable that the assessee acts in a bona fide manner and makes his statements consciously.

Thus the above differences explain us that search is more wider term than survey though scrutiny notices will be issued in the both the cases.