India: Income Tax Bill allows officials to forcibly access social media, email

Summary

The Parliamentary Select Committee appointed to review the new Income Tax Bill 2025 proposed by the government has retained the provisions in the new Bill empowering tax officials to access, forcibly if necessary, the social media and private emails of people they are conducting search and seizure operations on. The Income Tax Bill 2025 was introduced in the Lok Sabha in February 2025. The aim behind the Bill, as per the government, is to simplify and rationalise the existing Income Tax Act 1961 and the numerous amendments that have been made to it over the decades since it was introduced. It was then sent to a Select Committee, chaired by Baijayant Panda, for a review.The government on Monday (July 21, 2025) tabled the 4,575 page report in the Lok Sabha.The new Bill’s expanded scope of powers given to tax officials during search and seizure operations has drawn criticism and calls for change, including from the experts the Select Committee consulted during its review. Stricter searchesAccording to the new Bill, if a person is found to be in possession or control of any books of account, or other documents and information maintained digitally, on computer systems, or stored electronically, then they must provide the designated income tax officer “reasonable technical and other assistance (including access code, by whatever name called) as may be necessary” to enable the officer to inspect “any information, electronic records and communication or data contained in or available on such computer systems”.Further, the Bill also says that the authorised officer can gain access to these electronic systems by “overriding the access code to any said computer system, or virtual digital space, where the access code thereof is not available”. A ‘virtual digital space’ includes social media accounts, online investment accounts, trading accounts, bank accounts, remote server or cloud server, and digital application platforms. According to the report, the stakeholders the Committ...