Starting April 1, 2026, the Income Tax Department will have expanded powers under a new bill that allows officers to access your digital spaces — including emails, social media accounts and online investment platforms — if they believe you’re hiding income or assets to avoid taxes.
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As per the new Income Tax bill, IT officials can go beyond physical searches and enter digital areas if they have reason to believe someone has not disclosed all their income or possessions. This includes assets like money, gold, jewellery, property or any other valuable item on which you haven’t paid applicable income tax, according to The Economic Times.
Currently, under Section 132 of the I-T Act, 1961, officials already have the right to search and seize physical assets and documents if they believe someone is trying to hide income or assets to avoid paying taxes. One part of the existing law even allows officers to break open the lock of any door, box, or locker if keys are not available and if they suspect something is hidden inside.
However, the new bill expands these powers to cover digital systems as well. As per Clause 247 of the Income Tax Bill, if an authorised officer has reason to believe that a person holds undisclosed income or assets covered under the I-T Act, they can “break open the lock of any door, box, locker, safe, almirah, or other receptacle for exercising the powers conferred by clause (i), to enter and search any building, place, etc., where the keys thereof or the access to such building, place, etc., is not available, or gain access by overriding the access code to any said computer system, or virtual digital space, where the access code thereof is not available.”
This essentially means that officers will be able to legally override passwords and gain access to your devices or online platforms if they have a valid reason to suspect tax evasion.
The move is expected to boost efforts in uncovering black money and unreported wealth. However, it also raises serious concerns about digital privacy.
Ayushi works as Chief Copy Editor at Digit, covering everything from breaking tech news to in-depth smartphone reviews. Prior to Digit, she was part of the editorial team at IANS. View Full Profile