Section 133(6) Notice: The Third-Party Information Trap
Notice at a Glance
| Parameter | Details |
|---|---|
| Who receives this notice? | Third parties — banks, CA firms, registrars, employers, brokers |
| Can assessee also receive it? | Yes — sometimes issued to the assessee directly about specific transactions |
| What it demands | Books, documents, statements, or information about specific transactions |
| Time limit for compliance | As specified — typically 15–30 days |
| Can it be challenged? | Yes — if information sought is irrelevant, confidential, or privileged |
| Penalty for non-compliance | Section 272A(2)(g) — ₹100 per day during which default continues |
| Used in | Survey, pre-assessment inquiry, and verification under AIS/SFT mismatch |
| IT Act 2025 equivalent | Section 252(6) of IT Act 2025 |
Who Gets This Notice — And Why
Section 133(6) is one of the most frequently misunderstood notices in the income tax ecosystem. Many recipients — including banks, chartered accountants, registrars, and brokers — receive this notice and do not know how to respond. Equally, assessees who are the subject of a 133(6) inquiry directed at third parties often do not know their rights.
The notice empowers the AO to require any person — a bank, a company, a CA firm, a property registrar — to furnish information or documents about specified transactions. It is most commonly used in two situations:
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