The Income Tax Department is now going to be more strict about tax evasion, which can scare you. In fact, from April 1, 2026, the Income Tax Department will have the legal right to hack and access your social media account, personal email, bank account, online investment account, and trading account in tax evasion cases from 1 April, 2026. If they suspect that you have stolen income tax or if they feel that you have any undeclared income, property, gold, jewelery or expensive item, which you have not paid properly under the Income Tax Act, 1961, then they can do so.
What will change in New Income Tax Bill?
Under this new law, the Income Tax Department will now get the right to reach your digital assets. He will get this right under Section 132 of the Income Tax Act 1961, which gives them the right to search and seizure of the assets, documents and accounts of suspected persons. In simple words, the department will have the right to ask for access to digital assets of taxpayers in the new income tax bill.
Now digital property will also come under investigation
Under this new law, authorities will have the right to reach your computer system or virtual digital space. This means that if an authorized officer suspects that you are deliberately stealing income tax, then he can dent your computer system, email or social media account. What will be the effect in this situation? Let’s know
What changes in the new income tax bill implement it?
Under the new Income Tax Bill, the definition of virtual digital space will include your social media account, bank account, trading account, investment account and email. According to this, officers will get access to these digital platforms. Claus 247 of the bill states that the authorized officer can gain unannounced income, documents or assets by overrising the access code of the computer system, or virtual digital space. ” This means that in case of tax evasion, the Income Tax Officers can bypass passwords of your digital accounts, override security settings and unlock data. The new income tax bill gives them the right to do all this.
Who are authorized officers under the bill?
Under this bill, the following officers come in “Authorized Officer”:
Joint Director or Additional Director
Joint Commissioner or Additional Commissioner
Assistant Director or Deputy Director
Assistant Commissioner or Deputy Commissioner
Income Tax Officer or Tax Recovery Officer
What will be the new right with the authorities from 1 April 2026?
Income tax officers will now be able to check the social media, email, online investment, crypto accounts and other digital finance platforms of the suspect. Officers can search and seize computers, smartphones, laptops, hard drives and digital accounts. If the investigation is not cooperated, officers can bypass the password, override security settings and unlock data. The new income tax bill gives them the right to do all this.
Which taxpayers will apply to this rule?
The new rule will not apply to all taxpayers. This rule will only apply in cases where the authorities will suspect that tax evasion or undisclosed assets. Under the Claus-247 of the New Income Tax Bill, this right will be with only a few officers, ie Authorized Officers will be allowed to access digital data.
What are the changes in first and now?
Currently, Section 132 of the Income Tax Act, 1961 empowers 132 officers to seize, assets and documents confiscate. But under the new bill, now they will also have the right to break into your computer system or virtual digital space. Earlier, officers had the right to seize only documents, bank accounts, laptops or hard drives, but now the new law will give the officials direct access to digital data.
Government gave this clarification on new bill
Union Minister of State for Finance Pankaj Chaudhary in response to the question in the Rajya Sabha made it clear that Income Tax Officers will not be allowed to reach taxpayers’ personal information such as emails, social media accounts or bank accounts without a legal process. Officials can access data only when they follow the prescribed legal process.
Experts’ opinion on new bill
There is a fear about the change among taxpayers that from 1 April 2026, the Income Tax Department will be able to monitor their email and social media. However, most tax experts believe that not all taxpayers need to panic. This rule will only apply to those who are suspected of tax evasion. Experts say that this step is an essential change in the digital age and will be kept under the scope of the Constitution.