New Powers for Tax Authorities: Starting April 1, 2026, income tax officers can access your social media, emails, bank accounts, and more if they suspect tax evasion or undisclosed income.
By Aniket Chakraborty
Mar 4, 2025
Breaking into Digital Spaces: Under the new bill, tax officers can override access codes to enter your computer systems, emails, or online accounts if they suspect tax evasion.
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Expanded Definition of Virtual Digital Space: The bill defines virtual digital space to include emails, social media, online banking, trading accounts, cloud servers, and more.
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Search and Seizure of Digital Assets: Tax officers can now search and seize digital assets, including undisclosed income or property stored in virtual spaces.
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Concerns Over Privacy: Experts warn that the bill may violate the fundamental right to privacy, as it allows unrestricted access to personal digital spaces without judicial oversight.
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Constitutional Challenges: The bill may face legal challenges under Article 21 (right to privacy) and Article 19(1)(a) (freedom of expression) due to its broad surveillance powers.
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No Clear Safeguards: The bill lacks procedural checks, raising fears of arbitrary scrutiny and misuse by tax authorities.
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Impact on Companies: The bill’s expansive definition could allow tax officers to access sensitive company data where the taxpayer is employed.
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Conflict with Data Privacy Laws: The bill overrides existing data protection regulations, raising ethical and regulatory concerns.
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Need for Judicial Oversight: Experts suggest that searches should only occur with reasonable grounds and proper announcements to protect privacy rights.