New Delhi: Starting April 1, 2026, income tax authorities in India will gain enhanced powers to access and scrutinize individuals’ social media accounts, personal emails, bank accounts, and online trading and investment platforms. This move aims to tighten surveillance on potential tax evasion and undisclosed income.
Tax Authorities to Override Digital Access on Suspicion
As per the new amendments in the Income Tax Act, officials will be able to override access to any digital platform if they suspect an individual of concealing income or valuable assets, such as gold, jewellery, property, or investments on which the applicable tax has not been paid.
Previously, under Section 132 of the Income Tax Act, 1961, tax authorities had the right to conduct searches and seizures if they had credible information suggesting an individual was hiding undisclosed assets, property, or financial documents to evade taxes. This also permitted them to break locks on premises, lockers, or safes if required during an investigation.
New Law Brings “Virtual Digital Space” Under Scrutiny
With the new amendments, the scope of tax searches will now extend to digital devices, including mobile phones, computers, and cloud storage. This means that authorities will be able to access emails, social media interactions, online transactions, and other virtual assets if they suspect tax evasion.
The move is expected to strengthen tax compliance but has also raised concerns over privacy and data security. Experts suggest that citizens should ensure full compliance with tax laws and maintain clear financial records to avoid legal complications.
