The Press Information Bureau (PIB) issued a detailed fact-checking report after a post on X (formerly Twitter) claimed that from April 1, 2026, the Income Tax Department will have “powers” to access social media accounts, emails and other digital platforms to curb tax evasion.
The PIB termed the social media post as “misleading” and clarified that under the provisions of Section 247 of the Income Tax Act, 2025, such measures are strictly limited to search and survey operations. This means that taxpayers who are not under investigation or suspected of tax evasion need not worry.
“Unless a taxpayer undergoes a formal search operation for evidence of significant tax evasion, the department does not have the authority to access their private digital spaces,” the PIB said in a report.
Honest citizens will not be affected
The government media agency also said the Income Tax Department is not authorized to access private digital spaces for routine information gathering, data processing or even for cases under investigation. Therefore, these measures do not apply to honest citizens.
“These measures are specifically designed to target black money and large-scale evasion during search and probe, not the everyday law-abiding citizen,” PIB said to reassure citizens.
The fact-finding report also stated that the power to seize documents and evidence during search and investigation operations had always existed since the 1961 Act.
Superseded by the Income Tax Act, 1961
In August, Parliament passed the new Income Tax Act 2025, replacing the six-decade rule of the Income Tax Act 1961.
This new Income Tax Act 2025, which will come into effect on 1 April 2026, aims to simplify and modernize India’s income tax framework without changing the existing tax rates, creating a more straightforward and taxpayer-friendly law.
Speaking of privacy, the previous law allowed authorities to enter property, seize documents or equipment, and access digital data. Although those provisions remain the same in the new bill, it also allowed officials to “overwrite” access codes to computers or digital devices to obtain information during an investigation.
Although the updated bill omits the explicit mention of “virtual digital space” in some clauses, the definition of computer systems includes digital platforms such as email and social media.
Tax experts believe that from the effective date of the new Income Tax Act, officials may access digital accounts in cases of suspected tax evasion, raising concerns about privacy and civil liberties, as reported by Mint earlier.
