When does an income tax raid happen?

An income tax raid, or search and seizure, occurs when the Income Tax Department has credible evidence to believe that a taxpayer has not disclosed their true income or assets. Triggers include:

• Possession of undisclosed cash, jewellery, or property.
• Significant mismatches between declared income and actual lifestyle or expenditures.
• Failure to comply with summons or notices issued by the department.
• Evidence of tax evasion found through intelligence reports or assessments.
• Information shared by other government agencies regarding illegal financial activities.