New Income Tax Bill: The central government has been constantly saying that the new Income Tax Bill has been brought to simplify tax laws. However, a provision has been included in it, which gives tax officials the option to access the personal digital information of taxpayers.
Currently, this provision is in a lot of discussion about the violation of taxpayers’ privacy. If you are also concerned about your digital privacy, then this information is very important for you.
What is the provision
Under Section 247 of the new Income Tax Bill, income tax officials can access emails, social media, bank details, and investment accounts of any person suspected of tax evasion or undeclared assets. This rule will come into effect from April 1, 2026. According to this provision, tax officials can demand access to digital space.
If the taxpayer refuses, they can unlock the data by breaking the password or bypassing security settings. Digital space includes cloud storage, email, social media, and online trading platforms. This provision raises concerns about the privacy of taxpayers.
What experts are saying
Experts have also given their opinion on this new provision. Vishwas Panjiyar, a member of Nangia Andersen LLP, said that it is different from the existing law, and if adequate security measures are not taken, it can be misused. Sanjay Sangvi, partner, of Khaitan & Co, said that earlier also requests were made to check digital devices, but it was not legally allowed.
The new law will make it mandatory. CA Kamal Agarwal said that it is wrong to give direct access to digital information to any income tax officer. This should be done with the permission of higher officials. Social media investigation will violate the privacy of taxpayers. This provision raises questions about the security of the personal information of taxpayers.
Possibility of abuse of power, promotion of legal disputes
With this new provision, the personal information of taxpayers will be within the reach of tax officials. Also, there will be a possibility of misuse of power by officials. This provision can give rise to legal disputes. Even though the new Income Tax Bill is a step towards increasing transparency, compromising the digital privacy of taxpayers is worrying.
The government should amend this rule and allow access to digital information only with the permission of higher officials. Also, social media accounts should be completely excluded from the investigation. This provision is important to maintain the confidence of taxpayers.