Income Tax Officials Can Access Emails & Social Media Accounts Under Section 247 of the Income Tax Bill, 2025

The Income Tax Bill, 2025 proposes to grant the assessing officers (AO) the power to access digital data, including emails, social media accounts, and online financial platforms. Though the government contends that such measures are imperative to fight tax evasion, privacy issues regarding privacy have raised controversies over individual rights in the age of the Internet. In this article, we will explain the powers granted to the AOs under Section 247 of the Income Tax Bill, 2025.

Why Does Section 247 of the Income Tax Bill, 2025 Grant Tax Officials the Power to Access Virtual Digital Spaces?

Section 247 of the Income Tax Bill, 2025 grants tax officials the power to access virtual digital spaces like emails, social media, and online financial platforms to combat tax evasion in the digital age. With more financial activities moving online, including digital banking, cryptocurrency, and cloud storage, this provision enables authorities to investigate and track hidden assets or undeclared income. Since digital records are increasingly replacing physical ones, Section 247 modernises tax enforcement to promote accountability in the era of digital technology, facilitate compliance, and keep up with evolving evasion techniques.

Meaning of Virtual Digital Space

The bill defines a "virtual digital space" as any digital realm that allows users to interact, communicate, and perform activities through computer technology. It includes:

• email servers
• social media account
• online investment account, trading account, banking 
• account, etc.
• any website used for storing details of ownership of any asset
• remote server or cloud servers
• digital application platforms and
• any other space of similar nature

Impact on Taxpayers

If tax authorities believe that someone possesses undeclared assets or unreported income, they can seek access to pertinent electronic documents without waiting for permission. This covers anything from personal computer data to corporate documentation. The section mandates that people or companies offer technical support, including access codes and other tools, to enable tax officials to check digital records.

Date of Implementation 

The provisions of the Income Tax Bill, 2025 will come into effect once it is passed by both houses of Parliament and receives the President's assent, with implementation starting from April 1, 2026.

Benefits of Unrestricted Access to Virtual Digital Space

The following are the benefits of unrestricted access to virtual digital space:

• Enhanced detection of tax evasion
• Increased Transparency
• Faster and More Efficient Investigations
• Combating Digital Financial Crimes
• Prevention from tax fraud

Conclusion

Section 247 of the Income Tax Bill, 2025, empowers tax officials to access virtual digital spaces to combat tax evasion in the digital era. While it aims to improve detection, transparency, and investigation efficiency, it also raises privacy concerns.