New Income Tax Bill: Social media accounts to be investigated only during raids; Income taxpayers’ privacy to remain intact

New Delhi| Under the new Income Tax Bill, Income Tax officials will be able to access and check the taxpayer’s digital or social media accounts and computer equipment only during raids or search operations. Such powers already exist in the 1961 Act, the top Income Tax Department official said on Monday. These have only been repeated in the Income Tax Bill. Its purpose is not to violate taxpayers’ online privacy.
The official said, this power will be used even during raids or search operations only when the taxpayer refuses to share the passwords of digital storage drives, email, cloud and communication platforms like WhatsApp or Telegram. Even if a taxpayer’s case comes under investigation, his confidentiality will be maintained.
Claim baseless…Such news to spread fear
The official rejected some media reports and experts’ claim that tax authorities have been given additional rights to gain access to taxpayers’ emails, social media handles and electronic records, including cloud storage space. He said, such news is only to spread fear. The Income Tax Department does not spy on the social media account or online activities of the taxpayer.
Provisions not applicable even during investigation
Section 247 of the new Income Tax Bill-2025 empowers an Authorized Officer to gain access by overriding the access code of a computer system or Virtual Digital Space (VDS). The official said, the provisions related to virtual digital space also do not apply to those cases which are under investigation. It is implemented only during the raid or search process. That too not before the action starts.