The Ministry of Finance has said that during search and seizure operations, Income Tax (I-T) officers have the power to override access codes and retrieve data from electronic accounts, if the concerned person refuses to cooperate. The statement was made in the Rajya Sabha by Minister of State for Finance Pankaj Chaudhary on Tuesday, March 25.
In his written reply to Trinamool Congress (TMC) MP Ritabrata Banerjee, the Minister stated that while I-T officials do not have blanket access to personal emails, social media, or bank accounts, existing laws allow them to inspect electronic records during raids. Under Section 132 (search and seizure) of the Income Tax Act, 1961, and the proposed Section 247(1)(ii) (search and seizure) of the Income Tax Bill, 2025, officials can access digital records during search operations, he added.
He also said that I-T officials can inspect books of account or other documents stored in electronic form during search and seizure operations. “In certain cases of search and seizure authorised by the competent authority, where access code is not available and the person concerned is not cooperating with the proceedings, authorised officers may gain access by overriding the access code to such a computer system.”
The new Income Tax Bill introduced in the ongoing Budget Session of the Lok Sabha allows I-T officials to access individuals' emails and social media accounts in suspected tax evasion cases, starting April 1, 2026.
According to reports, the amendment also allows authorities to intercept digital communications. The Bill expands existing search and seizure powers to the virtual digital space, enabling officials to override access codes to digital platforms. Clause 247 permits officers to unlock physical or digital spaces, including cloud storage and banking accounts, if they suspect undisclosed assets, sparking fears of surveillance and misuse.