New Income Tax Bill May Allow Officials To Access Your Email, Social Media Accounts

The new Income Tax Bill, 2025, which was introduced in the Parliament last month, may allow tax officers to access social media accounts or emails of an individual if they have reasons to believe that there is non-disclosure of income.

The new rules, pursuant to the legislation's enactment as a law, will come into effect from April 1, 2026. Under Clause 247 of the Income Tax Bill, an authorised officer can "gain access by overriding the access code to any said computer system, or virtual digital space, where the access code thereof is not available."

The term virtual digital space includes email servers, social media accounts, online investment accounts, trading accounts, banking accounts, and any website used for storing details of ownership of any asset, the bill stated.

It also includes remote servers or cloud servers, digital application platforms, and any other space of similar nature, it added.

"Virtual digital space means 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, the internet, the worldwide web and emerging technologies," the legislation further explained.

Presently, Section 132 of the Income Tax Act, 1961, permits tax officers to seize assets and books during search operations if they have sufficient reasons to believe that an individual is in possession of undisclosed income or assets.

The provision related to virtual digital space in the new Income Tax Bill has drawn criticism from some quarters, as it may pose privacy-related concerns. "Your email and social media account can be accessed by income tax officers starting next financial year in these cases. This is an assault on our rights! The government should provide safeguards against misuse (sic)," former Infosys board member Mohandas Pai posted on the social media platform X.