Income tax officers will soon have access your bank accounts, email and social media accounts: Here’s everything you should know

The Indian government has recently announced changes to the income tax rules. As per the new amendment, the tax officers will now have the power to access citizens’ digital data starting from April 1, 2026. The new provisions will allow tax officers to examine bank accounts, emails, social media profiles, cloud storage, digital wallets, and online trading platforms when there is credible suspicion of undisclosed income or tax evasion. This new law has divided the Indians into two parts. One part supports the government’s initiative, while the other stated that it’s a threat to the individuals’ privacy. Here’s everything you should know about the updated income tax rules.

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Previously, under Section 132 of the Income Tax Act, 1961, allowing them to seize cash, jewellery, documents, or other tangible assets when there was credible information about unreported wealth. However, with most financial transactions now moving online, the government believes that the new rules are necessary to track digital money flow and financial activities.

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With transactions now occurring through digital platforms such as crypto assets, overseas trading accounts, digital wallets, and online businesses, financial activity leaves a digital footprint that traditional search powers struggle to trace. Authorities say sophisticated tax evasion increasingly relies on encrypted communication and online systems, so extending search and seizure powers into the digital space is necessary to close loopholes that allow undisclosed income and assets to remain hidden.

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As per the new amendments in the Income Tax Act, the concerned tax officers will now be able to search the “virtual digital space”. These include the digital platforms such as email accounts, social media pages, and digital payment accounts, as well as trading accounts.

The government said that the new rules are made in order to identify any financial irregularities that could possibly point towards any form of tax evasive activities by concerned individuals or organisations in the country. Furthermore, the government also said that these changes come as part of the government’s efforts to modernise the tax system, which it claims has become outdated in today’s digital age.

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However, it’s important to note that the new rules don’t allow random surveillance of any individual’s social profiles. A tax officer can only access the digital data if they have a reason to believe that the person has been involved in a financial wrongdoing. In simple words, the personal data of the users remains untouched unless there is a suspicion of tax evasion or any criminal activity.

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Bhaskar Sharma

Bhaskar is a senior copy editor at Digit India, where he simplifies complex tech topics across iOS, Android, macOS, Windows, and emerging consumer tech. His work has appeared in iGeeksBlog, GuidingTech, and other publications, and he previously served as an assistant editor at TechBloat and TechReloaded. A B.Tech graduate and full-time tech writer, he is known for clear, practical guides and explainers. View Full Profile