Tax Officers May Get Access to Your Emails, Social Media | What It Means

New Delhi: The new income tax bill has recently been in the news, and not for the reasons taxpayers would hope. While the government said it’s all about simplifying tax laws, buried within the bill is a provision that hands sweeping powers to tax authorities allowing them to dig into emails, trading accounts, social media profiles, and more during tax investigations.

New Income Tax Bill 

Finance Minister Nirmala Sitharaman introduced the revamped version of Income Tax Bill 2025, in Parliament, calling it an overhaul of the six-decade-old tax framework. But before it becomes law, a select committee will review it.  

Key Takeaways of New Income Tax Bill 2025  

The key concern is a clause that expands the scope of tax searches beyond what’s currently allowed to include “virtual digital spaces”. Right now, tax officers have power and can ask for access to laptops, hard drives, and emails, but since the current tax law doesn’t explicitly mention digital records, such demands often face legal pushback. Here the new bill comes into the picture. Since tax authorities can demand access to digital assets, and if a taxpayer refuses, they can bypass passwords, override security settings, and unlock files.

What New Income Tax Bill Proposes

As per clause 247 of the new income tax bill, designated income tax officers may now have the right to access your emails, social media, bank details, and investment accounts. The new proposal may soon turn to reality, starting April 1, 2026. Thereafter if the income tax department suspect tax evasion or undisclosed assets on which tax is not paid will have access to all possible account you are associated with. 

This new bill will eliminate those gray areas, making it legally binding for taxpayers to hand over access.

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As the bill undergoes review by the select committee, it remains to be seen how lawmakers and courts will address these concerns in the coming months. The new bill aims to simplify tax laws and reduce litigation, but its provisions on digital asset access to social media accounts have raised important questions about privacy and the balance of power between taxpayers and tax authorities.