- विज्ञापन -
New Delhi: The Income Tax Department will reportedly have the legal right to investigate your social media profiles, emails, bank accounts, online investments and trading accounts. If tax authorities suspect that you have evaded taxes or have any undeclared assets, cash, gold, jewellery, or other valuables, they can investigate your accounts, according to an ET report.
Section 132 of the existing I-T Act, 1961, allows authorised officers to conduct searches and seize assets and books of accounts if they have information and reason to believe that an individual has any undisclosed income, property, or documents that they would intentionally not divulge to evade income taxes.
One of the ways they can do so, under current laws, is by breaking open the lock of any door, box, or locker in case their keys are unavailable and if they have a reason to suspect that any undisclosed assets, or books of accounts, are being kept there.
This new provision will come into effect under the proposed Income Tax Bill and will make the process of tax investigations in line with the digital age, the report said, adding that the purpose of this change is to prevent financial fraud, undeclared assets and tax evasion.
Under Section 132 of the existing Income Tax Act, 1961, tax officials can conduct searches and seizures if they have credible information that a person is concealing his income, assets or financial records with the intent to evade taxes.
Until now, they had the power to break open doors, safes or lockers to investigate if they suspected that undeclared assets or financial records were hidden there, the report said. But from April 1, 2026, this right will also be extended to the digital world. Now officials will also have the right to access computer systems and online accounts if they suspect that information related to tax evasion is being hidden there, it added.
As defined under the new income tax bill, virtual digital space is an “environment, area or realm that is constructed and experienced through computer technology and not the physical, tangible world, which encompasses any digital realm that allows users to interact, communicate and perform activities using computer systems, computer networks, computer resources, communication devices, cyberspace, internet, worldwide web and emerging technologies, using data and information in the electronic form for creation, storage or exchange.”
Tax officials can now investigate emails, bank accounts, trading platform, and social media if they suspect undeclared income or asset. As digital forensics plays a larger role in tax investigations, it remains to be seen if this will reduce tax evasion or raise privacy concerns. As financial transactions are becoming digital, the investigation process of tax officials is also becoming modern. This new law shows that digital forensics will now play an important role in tax investigations. However, it will be interesting to see if this change will be effective in curbing tax evasion or will it raise privacy concerns.
For now, the best way is to file your tax returns correctly and disclose your income and investments. It’s crucial to file accurate tax returns and consult a tax expert if you have significant assets.
