The New Tax Bill to track of your emails, Bank Accounts and Social Media

Starting April 1, 2026, the Income Tax Department will gain expanded authority to access emails, social media, bank accounts, and digital platforms if they suspect tax evasion or undisclosed assets. 
 
This new power, granted under the revised Income Tax Bill, extends search and seizure rights to virtual spaces, raising major concerns about privacy and cybersecurity.
 
 
Currently, Section 132 of the Income Tax Act, 1961, allows officials to search and seize physical assets if they believe an individual is concealing taxable income. 
 
The revised bill now broadens this power to computer systems and online accounts, allowing officials to override security measures to access confidential data.
 
Clause 247 of the bill enables tax authorities to break into digital spaces, similar to how they access locked physical premises when passwords or security credentials are unavailable. 
 

This raises fears of potential misuse and lack of judicial oversight, fuelling debates on fundamental privacy rights.
 
At present, tax officers can inspect laptops, hard drives, and emails, but digital records were not explicitly covered under existing tax laws. 
 
This legal ambiguity has often led to court challenges, prompting the government to introduce stricter regulations.
 
As concerns over data security grows, businesses must explore alternative communication channels to protect sensitive financial information. 
 
Decentralized platforms, encrypted peer-to-peer networks, and blockchain-based messaging could provide safer alternatives, reducing exposure to government surveillance.
 
With governments tightening financial regulations, there are corporates who are going to come out with solutions where the individuals and corporations can enhance cybersecurity, diversify communication methods, and remain compliant while ensuring data privacy. 
 
The future of secure digital interactions will depend on the adoption of privacy-focused technologies to safeguard financial and business exchanges.

Dr. Deepak Kumar Sahu, Editor-in-Chief-VARINDIA