India's tax searches expand to emails, social media from 2026
What's the story
The Indian government is gearing up to give its income tax department a major digital upgrade. Starting April 1, 2026, under the proposed Income Tax Bill, 2025, tax officers will be authorized to access your bank accounts, emails, and social media profiles. The move is aimed at detecting undisclosed income or tax evasion. The new law expands search and seizure powers into the digital space as well.
Digital expansion
New law expands search powers to digital space
The proposed Income Tax Bill, 2025, seeks to update the existing Section 132 of the Income Tax Act, 1961. The current provision allows officers to raid premises and seize physical assets if there's credible information about unreported wealth. However, the new law would extend these powers into what it calls a "virtual digital space," including email accounts, social media profiles, and online banking platforms.
Rationale
Government's rationale for digital searches
The government justifies the need for digital searches by saying that most financial transactions have now moved online. From crypto assets to online businesses, today's financial activity leaves a clear digital footprint. Authorities believe traditional search powers are no longer enough to detect sophisticated tax evasion methods using encrypted communication and online platforms. By extending these powers into the digital space, the government hopes to close loopholes that allow undisclosed income and assets to go undetected.
Safeguards
New law doesn't allow random access to personal digital data
The new law does not give blanket or random access to personal digital data. Just like physical searches, digital access will require a "reason to believe" that a person is concealing income or assets or is involved in tax evasion. Taxpayer privacy will remain intact as income tax officers would have to record the basis of suspicion before initiating a digital search, aligning these powers with existing legal thresholds.