The income tax department may be able to legally access people’s social media accounts, personal emails, bank accounts, online investment accounts, trading accounts, and more if they suspect tax evasion.
This is because Clause 247 of the new income tax bill gives tax authorities the power to “gain access by overriding the access code to any said computer system, or virtual digital space, where the access code thereof is not available.”
This is apart from the other conferred powers such as the powers to break open the lock of any door, box, locker, safe, almirah, or other receptacle for exercising the powers conferred by clause” and “to enter and search any building, place, etc., where the keys thereof or the access to such building, place, etc., is not available.”
The bill explicitly defines “virtual digital space” as follows:
(i) email servers
(ii) social media account
(iii) online investment account, trading account, banking account, etc
(iv) any website used for storing details of ownership of any asset
(v) remote server or cloud servers
(vi) digital application platforms
(vii) any other space of similar nature
Which officers are authorised to do this?
The bill defines the term “authorised officer” as follows:
(i) the Joint Director or the Additional Director
(ii) the Joint Commissioner or the Additional Commissioner
(iii) the Assistant Director or the Deputy Director
(iv) the Assistant Commissioner or the Deputy Commissioner
(v) the Income-tax Officer or the Tax Recovery Officer
Privacy violation concerns
Experts said, “The proposed provision allowing tax officers to access private social media and email accounts raises significant concerns under the fundamental right to privacy, as upheld in the landmark Puttaswamy judgment by the Supreme Court.”
“Additionally, such an unchecked mechanism could raise questions under Article 19(1)(a), impacting the freedom of speech and expression, particularly if individuals fear surveillance on their private conversations,” he said.
“In an era where digital rights are closely tied to fundamental freedoms, the government must ensure that taxation enforcement does not come at the cost of constitutional safeguards,” he added.
Meanwhile, Sohail Hasan, advocate, the Delhi high court called the bill, “groundbreaking and highly controversial.”
“Under the guise of tax enforcement, this bill hands authorities shockingly unchecked power to pry into private virtual assets, rummage through emails, and infiltrate social media accounts—all under loosely defined ‘specific circumstances.’ Critics warn that this marks an unprecedented intrusion, a dystopian overreach that could redefine personal privacy as we know it, all in the name of cracking down on tax evasion,” he added.
Experts said that “the broad powers could lead to intrusive actions, including political profiling or misinterpretations—such as associating exotic foreign travel or gifts with disproportionate income levels.”
“There is also a chilling effect on free expression, as taxpayers may hesitate to freely post on social media, fearing their content could be used against them in tax investigations,” she added.
Constitutional violation concerns
Experts said, “The proposed income tax bill provision allowing access to social media and emails raises serious privacy and constitutional concerns.”
“It threatens to erode personal autonomy under Article 21 and freedom of expression under Article 19(1)(a),” he said. “The broad and ambiguous criteria for such access circumvent safeguards established by the Supreme Court in various cases including People’s Union for Civil Liberties (PUCL) v. Union of India, which mandates a legally established procedure for communication interception.”
He further added that “robust safeguards, including judicial oversight, are essential to prevent abuse and uphold democratic principles” and that “in the absence of judicial oversight or specific procedural safeguards, this provision risks becoming a tool for arbitrary scrutiny rather than a structured tax enforcement mechanism.”
Visit www.cagurujiclasses.com for practical courses
