Extending powers to the tax authorities to investigate any tax evasion by probing their virtual spaces, a provision in the new income tax bill makes it legal for a competent tax authority to get access to your social media accounts, personal emails, and even bank accounts and trading accounts if they suspect tax evasion or you are the one in the possession of undisclosed income, property, etc.

Under the Section 132 of the existing I-T Act, 1961, tax authorities can already conduct searches and seizures on the suspicion of an undisclosed income or property. They can enter the premises of any person and conduct a search and seize crucial documents.

The clause 247 of the Income Tax bill says: "...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 new income tax law, the "virtual digital space” entails 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.

Tax Evasion Investigation

Tax authorities can access emails, social media under new I-T Bill