Answer

1. F

   Facts

   Inquiries about income of FY 2025-26 or earlier continue under the Income-tax Act 1961, even if the summons is issued after 1 April 2026. The section on such summonses is Sec 131 (now Sec 246 of the Income-tax Act 2025).

2. P

   Provisions and law

   • Sec 246, Income-tax Act 2025 (old Sec 131)Officers have civil court powers to summon, examine on oath and call for books and documents
   • Sec 536, Income-tax Act 2025 (repeal and savings)Proceedings for years before 1 April 2026 continue under the Income-tax Act 1961
   • Sec 246, Income-tax Act 2025 (old Sec 131)Powers of discovery, inspection, summons, examination on oath and production of documents
3. A

   Analysis

   The savings clause in Sec 536 of the 2025 Act keeps pending and future proceedings for old years under the old law. Example: a summons dated 15 October 2026 about FY 2023-24 cash deposits cites Sec 131; your reply should quote Sec 131 first. For inquiries about tax year 2026-27 onwards, the summons would cite Sec 246 of the 2025 Act.

4. C

   Conclusion

   1. 1Check the year the inquiry relates to
   2. 2Quote the section printed on the summons in your reply
   3. 3Use 1961 Act sections for FY 2025-26 and earlier
   4. 4Ask your CA if the summons cites the wrong Act

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.