New IT bill gives govt access to your emails & social media accounts. What does this mean to your privacy?

The newly proposed Income Tax Bill 2025, introduced by Union Finance Minister Nirmala Sitharaman on February 13, has stirred significant debate due to its provisions that grant tax officials the ability to access individuals' digital and financial information without requiring a warrant.

This includes emails, social media accounts, bank details, and trading transactions based merely on suspicion, a move that critics argue could lead to an overreach of surveillance powers.

Nirmala Sitharaman introduced the revamped Income Tax Bill, 2025, in Parliament, calling it an overhaul of the six-decade-old tax framework. But before it becomes law, a select committee will review it. And the key concern is a clause that expands the scope of tax searches beyond what’s currently allowed to include “virtual digital spaces”.

Currently, tax officers can ask for access to laptops, hard drives, and emails, but since the current tax law doesn’t explicitly mention digital records, such demands often face legal pushback. However, the new bill makes it clear: tax authorities can demand access to digital assets, and if a taxpayer refuses, they can bypass passwords, override security settings, and unlock files.

As per clause 247 of the new income tax bill, designated income tax officers in India will now have the right to access your emails, social media, bank details, and investment accounts, in certain cases, starting April 1, 2026, if they suspect tax evasion or undisclosed assets on which tax is not paid.

“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.”

The new IT bill has been met with strong opposition. Critics, including opposition parties and civil rights groups, fear that such powers could herald the rise of a surveillance state, compromising personal privacy.

The Congress party, through its social media department head Supriya Shrinate, has described the bill as a tool for governmental overreach, potentially used to suppress dissent and control opposition voices. This criticism highlights a broader concern about the potential for abuse of power under the guise of tax enforcement.

The bill also includes a clause allowing tax officers to bypass security measures to access protected digital and physical spaces if they suspect concealment of income or assets. This provision has particularly alarmed privacy advocates and legal experts who argue that such powers need to be balanced with adequate safeguards to prevent misuse.

A 31-member Select Committee, chaired by BJP National Vice President Baijayant Panda, is reviewing the bill's implications for privacy and its consistency with existing legal norms. The committee's findings and recommendations are expected to address these concerns extensively.

Moreover, the bill specifies in Clause 247, an expansion of powers previously outlined in Section 132 of Income Tax Act, 1961.

Public reaction has been vocal, with figures such as former Infosys CFO Mohandas Pai labeling the measure as an "assault" on personal rights.

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