The new Income Tax Bill proposes to give income tax officials the power to access social media and other digital accounts. This includes investigation of online investment, trading and banking accounts, as well as email servers. In this new Income Tax Bill, "virtual digital space" has been defined under the power of income tax officials to seek information during survey, search and seizure. That is, if you want to understand in simple words, then understand that if you make any payment online, or receive payment, the government will have full right to investigate it. Your every digital activity will be under the eyes of the government. Even your confidential emails will no longer remain confidential.

What is virtual digital space?

The bill defines virtual digital space as "any digital area that allows you to interact, communicate and perform activities through computer technology". Your online privacy will be meaningless. No matter how many passwords you use to secure your email, the government will have the right to read/check/view it.

According to sources, Section 247 of the Income Tax Bill has now been clarified in the proposed bill. Similar powers for search and seizure already exist under Section 132 of the current Income Tax Act, 1961, under which officers can inspect and seize ledgers and other documents in the form of electronic records. But the new bill specifically refers to virtual digital space.

Existing powers under section 132: As per section 132 of the Income Tax Act, income tax officers can enter and search any building, place, vessel, vehicle or aircraft where they suspect that ledger accounts, other documents, money, gold, jewellery or other valuables are kept for tax evasion. Officers have the power to open doors, locks, safes and other storages and seize suspicious ledger accounts, documents, money, gold, jewellery or other valuables.

Changes in the new bill

The new bill, introduced in the Lok Sabha last month, explicitly includes "virtual digital space" within the scope of search and seizure. It is an attempt to define ledgers and other valuables in physical or electronic form. Under this, tax officials can override the access code of a computer system or virtual digital space. Even if it is not available. The bill states, "The officer may, during the search or seizure, question any person who is in possession, control or access to the computer system, ledger, other documents or property, or who is present in or on the premises being searched."

Sources said that under Section 132 of the current Income Tax Act, tax officials have been seizing electronic devices such as desktops, hard disks. Similarly, they will also collect evidence of communication platforms such as emails, WhatsApp, Telegram. A source said, "Such evidence will not only be useful to prove tax evasion in the court, but will also help in counting the tax evaded money."

Provisions of section 132(1)(iib)

Section 132(1)(iib) through the Finance Act, 2002 mandates that a person in possession or control of ledger books or other documents maintained in the form of electronic records shall facilitate access to such documents to the authorised officer. This includes providing necessary credentials and seizure of such documents. Section 132 gives powers to designated tax officers to conduct search and seizure operations based on information of tax evasion.

Congress also explained

A video of Congress spokesperson Supriya Shrinate is viral on social media. In which she has explained about the proposed Income Tax Bill. You can listen and watch it here. 

⚠️ चेतावनी: आपका ईमेल, सोशल मीडिया, बैंक और ट्रेडिंग अकाउंट्स पर हमला हो रहा है! ⚠️

नए आयकर कानून से कर अधिकारियों को असीमित अधिकार मिल गए हैं:

👉 आपके ईमेल्स: आपकी निजी बातचीत पढ़ सकते हैं
👉 आपके सोशल मीडिया अकाउंट्स: आपकी पोस्ट, मैसेज और इंटरैक्शन पर नजर रख सकते हैं
👉 आपके… pic.twitter.com/UNaCcBnw4X

— M G (@movohra) March 6, 2025

Congress Seva Dal chief Lalji Desai has also tried to explain it in Hindi. Watch his video as well-

मोदी सरकार एक नया आयकर कानून लागू करने जा रही है, जो आयकर अधिकारियों को किसी भी व्यक्ति के निजी जीवन में अप्रतिबंधित पहुँच प्रदान करेगा! इस नियम के अंतर्गत अधिकारी आपके:
👉🏼 ईमेल पढ़ कर आपकी निजी बातचीत को पढ़ सकेंगे!
👉🏼 सोशल मीडिया और डिजिटल अकाउंट पर आपकी पोस्ट, संदेश और बातचीत… pic.twitter.com/jArIuyAeDK

— Lalji Desai (@LaljiDesaiG) March 7, 2025

What does the government say

The Income Tax Bill, 2025, introduced in the Lok Sabha last month, claims to intend to simplify India's six-decade-old direct tax structure. It seeks to streamline provisions, remove obsolete references and create a clear and simple legal framework. The proposed bill will be reviewed by a select committee of Parliament. Once passed by Parliament, the new law will probably come into effect from April 1, 2026.

PC:Satyahindi