The government is set to tighten tax enforcement on digital assets and transactions through the proposed Income Tax Bill, 2025, ensuring income concealed via virtual platforms is scrutinized. Union Finance Minister Nirmala Sitharaman, addressing the Lok Sabha, emphasized the need for updated legal provisions to investigate digital assets, encrypted communications, and virtual transactions. She revealed that encrypted WhatsApp messages helped uncover ₹200 crore in unaccounted money, while digital forensics investigations led to ₹250 crore in hidden assets. Officials now use Google Maps history and Instagram accounts to track benami properties and illicit financial activities. The Income Tax Act, 1961, lacks provisions for investigating virtual financial transactions. The proposed law seeks to grant tax officials the authority to access encrypted messages, review cloud storage, track digital asset exchanges, and analyze location data for tax evasion evidence. This move ensures tax enforcement keeps pace with technological advancements, preventing digital assets from escaping scrutiny.
See What’s Next in Tech With the Fast Forward Newsletter
Tweets From @varindiamag
Nothing to see here - yet
When they Tweet, their Tweets will show up here.
