New Income Tax Bill has been in a lot of discussion in recent days. Many major changes have been made in this and the laws have been simplified. But there is also a big change in this that during the investigation, the tax income tax officers will have access to your social media account. Yes, in case of doubt in tax investigation, officers can investigate from your Facebook-Estagram account to e-mail and they will have legally rights for this. Simply, through the new tax bill, you can ask for access to digital assets of taxpayers.
Officers reach digital space
Currently, under the Income Tax Act 1961, IT officers are allowed to search and seize a bank account during the tax investigation. However, officers can demand laptops, hard drives or e-mails, but they also have to face legal resistance. But it will be applicable from 1 April 2026 and along with this, the officers will reach the virtual decision. That is, computer, email and social media account will have a legal right to check.
Even if a taxpayer refuses to cooperate with the investigation, or if you are reluctant to give e-mail or social media account details, then the officers can bypass the password of their account, overridge the safety settings and unlock the files.
These rules are not for all
According to section-247 of the New IT Act, the Income Tax authorities nominated in the investigation in India will get these rights in certain cases, that is, they are not for all taxpayers. Rather, it will be applicable to taxpayers who will be suspected of tax evasion or undeclared property (on which tax is not paid), in those cases, officers will be empowered to reach email, social media accounts, bank details and investment account.
Legal experts unhappy with this step
However, it is clear from the draft of the New Income Tax Bill that these rights will be involved in special matters. However, the legal experts do not look happy with this move of the government. According to Nangia Anderson LLP partner Vishwas Panjiar, this is a major change from the current Income Tax Act, 1961, warning that it can cause an unnecessary investigation of personal data, if the government gives this access to the authorities without strict security measures.
Sanjay Sanghvi, partner of Khaitan & Company, says that tax authorities have demanded access to digital space earlier, but the law has never clearly allowed it, but they will have legal rights in the new Act.