§ 295
Chapter XVI — Procedure For Assessment
Undisclosed income of any other person
Income-tax Act, 2025
If an assessing officer discovers undisclosed income that belongs to someone other than the person originally searched under sections 247/248, the seized assets and related documents must be transferred to the assessing officer handling that other person. The officer then proceeds with a block assessment under section 294, applying the same block period rules as for the originally specified person.
- Block period matches the specified person's period; if multiple specified persons are involved, the later ending period applies.
- Special rules apply when the income relates only to the tax year immediately before the search or to a single year within the preceding five years.
📜 Official text of the section +
295. (1) Where the Assessing Officer is satisfied that any undisclosed income
belongs to or pertains to or relates to any person (herein referred to as the
other person), other than the person (herein referred to as the specified person) with
respect to whom search was initiated under section 247 or requisition was made
under section 248, then—
( a) any money, bullion, jewellery, virtual digital asset or other valuable article
or thing or any books of account or other documents seized or requi -
sitioned or any other material or information relating to the aforesaid
undisclosed income shall be handed over to the Assessing Officer having
jurisdiction over such other person; and
( b) Assessing Officer of the other person shall proceed under section 294
against such other person and the provisions of this part shall apply
accordingly.
(2) For the purposes of this section,—
( a) where there is one specified person relevant to such other person, the
block period for such other person shall be the same as that for the
specified person;
( b) where there is more than one specified persons relevant to such other
person, the block period for such other person shall be the same as that
for the specified person in whose case the block period ends on a later
date;
62[(c) where the undisclosed income of the other person pertains only to the
period—
( i) commencing from the tax year (herein referred to as the specified year)
immediately preceding the year of initiation of search or requisition;
and
( ii) ending on the date of initiation of search or making of requisition,
then irrespective of the provisions of section 301( a), the block period in
respect of such other person shall comprise of the specified year and the
period starting from the 1st April of the tax year in which search was ini -
tiated or requisition was made and ending on the date of the execution of
the last of the authorisations for such search or such requisition;
( d) where the undisclosed income of the other person pertains to a single tax
year out of the five tax years preceding the specified year, then irrespective
of the provisions of section 301(a), the block period in respect of such other
person shall comprise of only that single tax year.]
(3) In case of such other person as referred to in sub-section (1), for the purposes
or abatement under section 292(2) and (3), the reference to the date of initiation of
the search under section 247 or making of requisition under section 248 shall be
62. Clauses (c) and (d) inserted by the Finance Act, 2026, w.e.f. 1-4-2026.
construed as reference to the date on which such money, bullion, jewellery, virtual
digital asset or other valuable article or thing or any books of account or other
documents seized or requisitioned or any other material or information relating
to the aforesaid undisclosed income were received by the Assessing Officer having
jurisdiction over such other person.
Time-limit for completion of block assessment.
Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.