New Delhi: In a major reform, the Income Tax Department will have the authority to check social media profiles, emails, bank accounts, online investments, and trading accounts from April 1, 2026. If officials suspect tax evasion or undeclared assets like cash, gold, or jewellery, they will be able to investigate those accounts.
It’s part of the proposed Income Tax Bill to make tax investigations more suited to the digital age. The aim is to prevent financial fraud, hidden assets, and tax evasion, reported The Economic Times.
Under Section 132 of the Income Tax Act, 1961, tax officers already have the authority to search and seize assets if they suspect hidden income or documents meant to avoid taxes.
On February 13, Union Finance minister Nirmala Sitharaman introduced a Bill to replace the Income Tax Act.
The Bill introduces “virtual digital space”, and allows tax officials to search and access digital data, including emails and social media, if they suspect tax evasion. Currently, officers can break open doors, boxes, or lockers if they suspect hidden assets. The new Bill extends this authority to computer systems and online platforms.
According to Clause 247 of the draft Bill, officials can break open locks on doors, lockers, safes, or override access codes to computers and online accounts if they believe someone is hiding income or property. This means they could access your computer, emails, or social media if they suspect deliberate tax evasion.
As per the Bill, ‘authorised officers’ include:
* Joint Director or Additional Director
* Joint Commissioner or Additional Commissioner
* Assistant Director or Deputy Director
* Assistant Commissioner or Deputy Commissioner
* Income-tax Officer or Tax Recovery Officer
However, the expansion of tax authorities’ powers under the Income Tax Bill has raised privacy concerns. The Supreme Court, in Justice K.S. Puttaswamy v. Union of India (2017), ruled that privacy is a fundamental right under Article 21, and any government intrusion must meet legality, necessity, and proportionality tests.
As per reports, legal experts have warned that the bill lacks safeguards, potentially leading to constitutional challenges. It may also impact company data linked to a taxpayer. Without clear guidelines, experts fear privacy violations and legal disputes.
