Mumbai, March 5: Imagine waking up one day to find that tax authorities can legally peek into your social media, emails, and bank accounts. Starting April 1, 2026, this will be a reality. The Income Tax Department will have the legal authority to access individuals' personal digital footprints, including social media, online investments, and trading accounts, if they suspect tax evasion.

This move aims to track undisclosed income, money, gold, jewelry, or other valuable assets on which income tax has not been paid, as per the Income Tax Act, 1961. While authorities defend it as a step toward financial transparency, concerns over privacy and potential misuse loom large. How New Income Tax Slabs and Rates, Announced in Budget 2025, Are Different From Current Income Tax Slabs and Rates Under Old and New Regimes.

Under Clause 247 of the Income Tax Bill, a new provision empowers officers with legal access to virtual digital platforms, allowing them to investigate hidden income or undisclosed assets.

How Will This Impact Taxpayers?

The updated law grants tax authorities the power to use digital forensics to uncover hidden income and assets. If a taxpayer’s declared earnings do not align with their online transactions or social media lifestyle, officials may initiate an inquiry. This measure aims to curb financial fraud and unreported wealth while strengthening tax compliance. New Income Tax Bill 2025: From Access to Social Media Accounts To Power To Override Computers, How New IT Legislation Further ‘Empowers’ Taxmen.

Although this modern strategy may help reduce tax evasion, it has sparked concerns about privacy and data security. Experts recommend that taxpayers maintain accurate filings and fully disclose their income and investments. Those with significant assets should consider seeking professional tax advice to avoid potential scrutiny. While the effectiveness of this digital crackdown remains to be seen, one thing is clear: India’s tax system is moving into an era of heightened digital oversight.

(The above story first appeared on LatestLY on Mar 05, 2025 04:19 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).