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The Income Tax Department may have the power to access emails and social media accounts if they find tax evasion. Currently, the Income Tax officials, as per Section 132 of the Income Tax Act 1961, have the right to seize the assets and books if they find valid and sufficient reasons to believe if any individual is having any unrevealed income or assets during the search operations.
The officers can break open the lock of any door, box, or locker or gain access by overriding the access code to any virtual systems or other computer devices if the access is denied, as per Clause 247 of the Income Tax Bill. This can only be relevant when the individual owns any undisclosed assets, cash, or income.
The income tax bill for the year 2025 was recently introduced in Parliament. The legal authorities and the legal officials will have access to inspect more of the Virtual Digital Spaces and a wide range of personal and digital financial spaces.
According to the new bill, Virtual Digital Spaces refer to an environment, area, or realm that is constructed and experienced through computer technology. It also involves email servers, investment accounts, social media accounts, trading, and banking accounts.
As per the bill, the taxpayer's virtual digital space can be suspected of concealing unnecessary income, and assets can be inspected by the director, Joint Commissioner, Assistant Director and assistant commissioners or any tax officer to perform such acts.
Hence, the Income Tax Department has gained the rights to access to personal mail, social media accounts, bank accounts, online investment accounts, and other platforms if they find any reason that will make them believe if the individual has any disclosed income, gold, money, or jewelry, properties, or any valuable items for which they haven’t paid.
Although the taxpayer will have privacy concerns, tax authorities may request access to the digital virtual area if they discover sufficient proof that the taxpayer is purposefully concealing assets or income.
They may be subject to an investigation if they ignore or fail to help the tax officer. Such drastic actions, however, can only be used if the taxpayer disregards the Income Tax Department's notices and fails to supply proper information.
