Starting April 1, 2026, Income Tax (I-T) officials may gain access to individuals’ emails and social media accounts in cases where tax evasion is suspected. The move, which has sparked privacy concerns, is part of a new set of rules under the amended Income Tax Bill introduced by Union Finance Minister Nirmala Sitharaman earlier in February.
According to The Wire, the amendment will grant tax authorities powers to intercept and monitor digital communications if there is a reasonable belief of tax evasion. Media reports said that this access would extend to platforms such as Facebook, Instagram, and other social media accounts, raising alarms over potential misuse and privacy violations. Further, the proposed amendments will allow tax officials to collect digital evidence directly from personal communication channels.
Under the existing Income Tax Act of 1961, authorised officers have the power to conduct searches and seize assets if they have reason to believe that an individual possesses undisclosed income or property. The new bill extends these powers to the ‘virtual digital space’, allowing officers to override access codes to computer systems and digital platforms during investigations.
As per clause 247 of the Bill, authorised officers can “break open the lock of any door, box, locker, safe, almirah, or other receptacle” or “gain access by overriding the access code to any said computer system or virtual digital space” if they suspect undisclosed income or property.
The term virtual digital space, according to Reuters, encompasses a broad range of digital platforms, including email servers, social media accounts, online investment accounts, trading accounts, banking accounts, cloud servers, and more.
Meanwhile, former Infosys CFO Mohandas Pai has criticised the move, calling it an “assault on rights.” According to the Financial Express, Mohandas pointed out that such surveillance should only be conducted with proper judicial oversight, emphasising the need for a court order before accessing private communications.