Income Tax New Act: If the tax officer suspects that you have evaded tax or you have undeclared property, cash, gold, jewellery or other valuables, then your digital information can be checked by the officers.
Income Tax Department: If you also pay income tax every year, then this news is related to you. Yes, now the Income Tax Department can get the legal right to check your social media, email, bank account, online investments and trading accounts. If the tax officer suspects that you have evaded tax or you have undeclared property, cash, gold, jewellery or other valuables, then your digital information can be checked by the officials. Information related to this has come out in a report by ET.
What will change under the new law?
This new power of the Income Tax Department will be implemented under the proposed Income Tax Bill. This change is being made keeping in mind the digital age so that any kind of financial fraud, undeclared assets and tax evasion can be prevented. The department has received such information that the expenses of many people and the money withdrawn from their accounts do not match in any way. That is, very little money comes out of their accounts while their lifestyle and expenses are very high.
When will digital information be investigated?
Under Section 132 of the Income Tax Act, 1961, if the officers get concrete information that a person is hiding his wealth, property or financial records, then they can investigate it. Earlier, the officers only had the right to search homes, safes and lockers. But from April 1, 2026, this right will also extend to the digital world. Now, if the officers suspect that information related to tax evasion is being hidden there, then they will also have the right to access computer systems and online accounts.
How will it affect you?
If income tax officials suspect that you have not given complete information about your income or property, they can check your email, bank account, trading platform and social media activity. With changing times, when financial transactions are becoming digital, tax investigation is also becoming modern. With the new law, digital forensics will become an important part of tax investigation. However, it will be interesting to see how effective this change will be in preventing tax evasion and whether it will raise concerns about people’s privacy.
What should be done?
The best way is to file your income tax return on time and correctly. Give complete information about your income and investments so that any kind of trouble can be avoided in the future. If you have large investments or assets, it would be good to consult a tax expert. This will help you avoid any legal complications and maintain financial security.
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