Mar 7, 2025
By: Vidhi Verma, ET OnlineStarting April 1, 2026, tax officers will have the authority to access emails, social media, bank accounts, and online investments if they suspect tax evasion or undisclosed income.
The new Income Tax Bill defines virtual digital space broadly, covering social media, email servers, banking and trading accounts, cloud storage, and websites storing asset details.
Clause 247 allows officials to break into computers and override access codes if they believe an individual is hiding income or assets.
Legal experts argue that this law enables “unrestricted surveillance” over personal and financial data, conflicting with data privacy laws.
The income tax bill may face challenges under Article 21 (Right to Privacy) as it lacks proper safeguards and could lead to excessive state surveillance.
The broad definition of virtual digital space could extend to sensitive company data where a taxpayer is or was employed, raising corporate privacy concerns.
While aimed at curbing tax evasion, experts stress that without proper checks, the law could lead to privacy violations and potential misuse.
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