Starting April 1, 2026, the Income Tax Department will have the authority to access individuals’ social media accounts, emails, and other digital platforms if they suspect tax evasion or undisclosed income. This power is granted under the new Income Tax Bill, 2025, which aims to address tax evasion in the digital age.
The bill introduces the concept of “virtual digital space,” encompassing:
- Email servers
- Social media accounts (e.g., Facebook, Instagram, LinkedIn)
- Online banking and investment accounts
- Cloud storage services
- Digital application platforms
Tax officials can access these platforms if they suspect intentional tax evasion or possession of undisclosed assets.
While the bill aims to enhance the detection of unreported income, it has raised privacy concerns. Experts emphasize the need for clear safeguards to prevent potential taxpayer harassment and ensure investigations do not infringe on digital rights.
