New Income Tax Bill: Digital Access Regulations
Under the new Income Tax Bill, tax officials will be granted access to digital spaces or computer equipment solely during raid operations. A top official from the Income Tax Department provided this information, emphasizing that the intention behind this provision is to protect the online privacy of ordinary taxpayers.
The official reiterated that even if a taxpayer’s case is under investigation, their privacy will still be upheld. They clarified that these powers were “already present in the income Tax Act of 1961 and are simply being relterated in the Income Tax Bill of 2025.
Rejecting claims made by certain media reports and experts that tax officials have been endowed with additional powers to access electronic records, including emails, social media accounts, and cloud storage of taxpayers, the official stated, “Such reports are nothing but spreading fear. The tax department does not spy on the taxpayer’s social media account or online activities.
Furthermore, the official informed PTI-Bhasha that these powers should only be employed during search or raid operations. It was specified that access would also be sought during raids if the taxpayer refuses to share passwords for their digital storage drives, email accounts, and communication platforms, including WhatsApp and Telegram.
The Income Tax Bill, 2025, is currently under consideration by Parliament.