The new income tax bill grants tax department officials extensive authority to access personal computers, emails, and social media accounts of individuals. Recently introduced in the Lok Sabha, this bill aims to reform income tax laws and was presented by Finance Minister Nirmala Sitharaman. While the central government claims that this new legislation simplifies tax regulations for citizens, it includes a provision that empowers officials to conduct thorough investigations without the individual’s consent, allowing them to examine personal emails, business accounts, and social media profiles during income tax inquiries. According to current regulations, when conducting an inquiry involving an individual, tax department officials are required to seek permission from that individual to access their laptop, email, and social media accounts. If the individual does not grant this permission, the officials are unable to access these items immediately. However, if an individual refuses to grant access to tax department officials, the new income tax bill provides them with full authority to access personal emails and social media accounts.
Under Section 247 of the new income tax bill, tax department officials are permitted to access the relevant individual’s emails, social media accounts, banking details, and investment accounts starting from April 1, 2026, if there are suspicions of tax evasion or undisclosed assets. The distinctive feature of the new income tax legislation is its simplification, as stated by Finance Minister Nirmala Sitharaman. The new income tax bill comprises 600 pages, 23 chapters, 16 schedules, and 536 subsections. The assessment year has been redefined as the tax year, while the previous year is now referred to as the financial year. The tax year is defined as the 12-month period commencing on April 1. Consequently, this has led to a restructuring of the financial year’s framework. Income earned during the 2024-25 financial year will be assessed in the subsequent financial year, with the new tax regime applying to the assessment year 2025-26. Additionally, the Central Board of Direct Taxes is tasked with establishing tax administration rules and implementing coordinated actions.
