Income Tax Dept To Have Legal Rights To Access Your Social Media, Bank Account From 1 April 2025 If...; Check Reports

If authorized officers suspect someone hiding income, property, or documents to avoid paying taxes, they may examine and confiscate assets and accounts under Section 132 of the I-T Act, 1961 said a report in the Economic Times.

New Delhi: The income tax department will have the legal right to access your accounts, such as social media, bank accounts, online investment accounts, trading accounts, and personal mail, starting April 1, 2026, if they suspect tax evasion or think the person has unreported income, money, gold, jewelry, or valuable property that has not been taxed, according to an ET report.

When can tax officials conduct searches on your digital information? 
If authorized officers suspect someone hiding income, property, or documents to avoid paying taxes, they may examine and confiscate assets and accounts under Section 132 of the I-T Act, 1961.

Officials can access unreported assets or books of accounts by breaking through locked doors, boxes, or lockers under present laws. According to the ET report, the new income tax bill expands this authority to include computer systems and virtual digital spaces.

According to clause 247 of the Income Tax bill, if an authorised officer has reason to believe that an individual possesses undisclosed income or property that comes under the ambit of I-T Act, they can “break open the lock of any door, box, locker, safe, almirah, or other receptacle for exercising the powers conferred by clause (i), to enter and search any building, place, etc., where the keys thereof or the access to such building, place, etc., is not available, or gain access by overriding the access code to any said computer system, or virtual digital space, where the access code thereof is not available.”

According to the ET report, if authorized officers detect deliberate income tax avoidance, they can gain access to computer systems, emails, or social media profiles.

According to the Income Tax Bill, what is considered virtual digital space?
The Income Tax Bill defines virtual digital space as encompassing social media, email, bank accounts, trade, investment accounts, and remote servers, says the report.

How can it affect you?
The Income Bill has given officers the powers under search and seizure provisions to access virtual digital space to look for instances of tax evasion online. Tax authorities may look into your emails, bank accounts, trading platforms, and social media activities if they believe you have not fully disclosed your income or assets.