The Central Board of Direct Taxes (CBDT) has said that an income tax survey will be conducted to collect information for scrutiny by Tax Deducted at Source (TDS) directorate only after approval from the Principal Chief Commissioner or the Chief Commissioner level officer.
The board by releasing directed the officers that where any survey action need to be performed by officers of “Central Charge” (involving search/ seizure), international charge, NeAC (National e-Assessment Centre)/ NFAC (National Faceless Assessment Centre), It also need the approval of a collegium comprising high-ranked officers.
According to the ‘The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020’ The Central Board of Direct Taxes 
These types of taxes are directly imposed and paid to the government of India. Example of Direct Tax is Income Tax, TDS, Securities Transaction Tax, Fringe Benefit Tax, etc (CBDT) has also issued an internal order under section 133A of the I-T Act concerning the exercise of the power of the survey by the tax authorities.
Normally, In an I-T survey, tax authorities visit taxpayers’ business premises to collect information by going through the books of accounts, electronically stored data, as well as e-mails.
The CBDT said that “Where the TDS charge is headed by the Pr. CCIT (Principal Chief Commissioner of Income Tax) of the region or by the CCIT (TDS), the verification or survey action shall be approved by the Pr.CCIT of the region or the CCIT (TDS), as the case may be and shall be conducted by the officers of the TDS charge”.
It further added that “Surveys can be conducted only by the officers of the investigation wing or the TDS charge and any such action shall be taken only as a last resort when all the other means of verification/obtaining details online/recovery are exhausted”.
The board also directed that the principal commissioner of Income Tax or commissioner of Income Tax of the TDS charge or the investigation wing need to keep eyes on and ensure that it doesn’t go beyond the approved scope and limit.
The I-T Department also issued new guidelines on Friday to halt intrusive or coercive activities or actions by the Assessing Officer (AO) or Tax Recovery Officer (TRO) for recovery of tax demand. These new guidelines come into action immediately.
Neha Malhotra, Director of Nangia Andersen LLP responded in this matter that “This shows that the government intends to ensure that only deserving cases are subject to the survey procedure. After the approval, the survey proceedings shall be conducted by a team of officers.”
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She added that “The procedure for getting the approval and team-based approach will ensure the next level of transparency, functional expertise, efficiency, and improvement in the quality of assessment. The newly issued directions will assist in examining the powers of the authorities and create an accountable tax administration system”.
Neha Malhotra further added that “Further, Principal Commissioners have been directed by the CBDT to ensure that the survey does not go beyond the scope covered. The directions make it clear that the CBDT wants to keep a check on the powers of the overzealous tax officers who resort to harsh steps without making the due effort required as per law,”.
