From April 1, tax authorities will have the power to access private communication carried out on platforms such as WhatsApp, Telegram, and emails under the newly proposed Income Tax Bill, 2025. Finance Minister Nirmala Sitharaman says that the legislation is aimed at tackling illegal activities, unaccounted wealth, and tax evasion in the digital era.

According to the New Bill, tax officials will have the legal authority to:
— Access messages and communication history from Telegram, WhatsApp, and emails
— Inspect servers, business software, and digital platforms used to conceal financial transactions
— Examine social media accounts, email servers, online investment platforms, and websites related to asset ownership

The legislation seeks to include virtual digital assets like cryptocurrencies or digital tokens under the ambit of the definition of undisclosed income. The Finance Minister says bill will strengthen surveillance and equip enforcement agencies to track down tax evasion. The Bill is currently under review by the Parliament of India and could be implemented from the coming financial year.

Income tax law raises serious privacy concerns

These recent developments in India’s legislative landscape have sparked concerns regarding potential surveillance of social media accounts. The new income-tax law grants tax officials access to individuals’ emails, social media, bank, and trading accounts without requiring warrants, raising fears of privacy violations and the emergence of a surveillance state.

Critics argue that such measures could lead to harassment and intimidation, as officials would need only suspicion, rather than concrete proof, to initiate surveillance. These developments have ignited a broader debate about the balance between national security, tax compliance, and individual privacy rights in India. While the government asserts that these measures are necessary to curb tax evasion and ensure financial transparency, opponents fear they may infringe upon civil liberties and lead to excessive state monitoring of personal digital activities.

As the implementation date approaches, it remains crucial for stakeholders, including policymakers, legal experts, and civil society, to engage in dialogue to address these concerns and ensure that any surveillance measures are proportionate, transparent, and respectful of fundamental rights.