New Income Tax Bill 2025: This change in the Income Tax Act can be a big step towards curbing tax evasion in the digital age, but at the same time it can also become an issue affecting privacy and digital freedom.

New Income Tax Bill 2025: The Government of India is going to make an important amendment in the Income Tax laws from April 2026, which will give tax officials the power to access the digital space of taxpayers. Under the proposed Income Tax Bill 2025, if a person is suspected of hiding income or assets, tax officials can access the relevant digital platforms even if they are protected with a password or security code.

Purpose of the new provisions

The government claims that the aim of these amendments is to make income tax laws more transparent and effective. This rule will target those taxpayers who try to hide their assets and sources of income in digital mediums.

What is 'virtual digital space'?

• Email Servers – Access to any type of personal or business email accounts.
• Social media accounts – Platforms like Facebook, Twitter, Instagram, LinkedIn, etc.
• Online Financial Accounts – Investment Account, Trading Account, Digital Banking Services etc.
• Property ownership websites – Portals that keep details of a person’s properties or investments.
• Remote or cloud servers – data storage and other online services.
• Digital Application Platforms – Fintech and other digital applications.
• Other digital spaces – Any other online system that contains financial or asset-related information.

New income tax bill 2025: Big change in income tax, now tax officers will be able to check social media and email without informing 3

Which officers will get the power to investigate?

This bill also clarifies which officers will have the right to investigate the digital space. The definition of 'authorized officer' is given as follows:

• 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

How will this law work?

• If tax authorities suspect that a person has hidden his income or assets in digital means, they can get direct access to the digital space.
• There will be no password or security code barrier to access – officials can check accounts straight away.
• This provision will enable strict monitoring of digital transactions and online investments.
• In case of any suspicious activity, officials can seize the digital evidence and conduct further investigation.