New income tax bill gives officers power to access your email, social media

The new income tax bill has been making headlines, but for all the wrong reasons. The Indian government claims that it aims to simplify tax laws, however, there’s a concerning provision that gives tax authorities power to access emails, trading accounts, social media profiles, and more during an investigation.

Finance Minister Nirmala Sitharaman introduced the updated income tax bill, 2025, in parliament but before it becomes a law, the select committee will review it, but the key concerns remain about the same clause that expands the scope of tax searches beyond what’s currently allowed to include 'virtual digital spaces'.

Tax officers can currently ask for access to laptops, hard drives, and emails but they often face legal challenges because tax laws don’t specifically cover digital records. The new bill clarifies that tax authorities can access digital assets. If a taxpayer refuses, they can unlock files by bypassing passwords and security settings.

The legislation will replace the Income Tax Act, 1961, which has grown extensively due to numerous modifications carried out over six decades.

The Income Tax Bill is being reduced to 622 pages and contains 536 clauses. It will replace the existing 64-year-old law that runs into 823 pages with 819 sections.

The bill will not change the existing tax slabs or review the tax rebate given.

(With inputs from syndicated feed)