Emails and Social Media Accounts Can be Accessed by Income Tax Officials under Section 247 of the Income Tax Bill, 2025
- Rashmita Choudhary
- Jul 10
- 4 min read
Previously, if income tax authorities had cause to suspect someone of tax evasion, they might search a person and confiscate assets and books of accounts. This authority was expanded to the "virtual digital space" by the recent Income Tax Bill. The assessing officers (AO) will have the permission to access and examine digital data, such as emails, social media accounts, and online banking platforms, under the provisions of the Income Tax Bill, 2025. Even though the government argues that these steps are necessary to combat tax evasion, privacy concerns have sparked debates over individual rights in the Internet age. The authority given to the AOs by Section 247 of the Income Tax Bill, 2025, will be discussed in this article.
Table of Contents
What are the New Powers Tax Officials Can Exercise under Section 247 of the Income Tax Bill, 2025
Authorised officers may search and seize assets and books of accounts under Section 132 of the current Income Tax Act, 1961, if they have reason to suspect that a person is hiding money, property, or documents that they would purposefully withhold in order to avoid paying taxes. According to present legislation, they can do this, for example, by breaking the lock on any door, box, or locker if they can't find their keys or if they have grounds to believe that any books of accounts or undeclared assets are being kept there.
This ability to hack into your computer system or virtual digital area has also been expanded under the new income tax bill. Clause 247 of the Income Tax Bill states that if an authorised official has cause to suspect that a person has unreported income or property that is subject to the I-T Act. This implies that if authorised officers believe you are purposefully avoiding income tax, they have the right to access your computer systems, emails, and social media profiles.
Why Are Tax Officials Allowed to Access Virtual Digital Spaces by Section 247 of the Income Tax Bill, 2025 Grant?
In the fight against tax evasion in the digital age, Section 247 of the Income Tax Bill, 2025, gives tax authorities the authority to access online banking platforms, social media, and emails. This clause allows authorities to look into and follow concealed assets or undeclared income as more financial activity moves online, such as cloud storage, cryptocurrencies, and digital banking. Since physical records are gradually being replaced by digital ones, Section 247 modernizes tax enforcement to encourage responsibility in the digital age, make compliance easier, and stay up to date with changing evasion tactics.
What is Virtual Digital Space?
According to the new income tax bill, a virtual digital space is an environment, area, or realm that is created and experienced through computer technology rather than the real, physical world. This includes any digital realm that enables users to interact, communicate, and carry out tasks using computer systems, computer networks, computer resources, communication devices, cyberspace, the internet, the global web, and emerging technologies, as well as any data and information created, stored, or exchanged electronically. These include:
Social media accounts
Email servers
Remote servers or cloud servers
Online investment, trading, banking accounts
Digital application platforms
A website used to store details of ownership of any asset
Any other space of similar nature
If the access code for a computer system or virtual digital area is unavailable, authorised officials may override it to get secret income, documents, or property, according to clause 247 of this bill.
Benefits of Unrestricted Access to Virtual Digital Space
The advantages of unfettered access to virtual digital space are as follows:
Improved tax evasion detection
Prevention of tax fraud
Greater transparency
Limiting financial crimes online
Expedited and effective tax investigations
Who are Authorised Officers?
As per the Income Tax ill, the term “authorised officer” includes:
The Joint Director or the Additional Director
The Joint Commissioner or the Additional Commissioner
The Assistant Director or the Deputy Director
The Assistant Commissioner or the Deputy Commissioner
The Income Tax Officer or the Tax Recovery Officer
Impact of Section 247 of the Income Tax Bill, 2025 on Taxpayers
Tax authorities do not need permission to request access to relevant electronic documents if they suspect that an individual has unreported income or assets. This includes anything from business papers to data on personal computers. According to this clause, individuals or businesses must provide technological assistance, such as access codes and other resources, so that tax authorities can review digital records.
Conclusion
Given how advanced technology has become in today's world, it is crucial to examine the digital realm from a tax perspective. Experts have expressed worry, meanwhile, that the proposed I-T bill in its current form violates data privacy principles by granting tax authorities unfettered access. Significant questions are raised about the constitutionality, possible state overreach, and practical enforcement of the new Income Tax Bill's expansion of the Virtual Digital Space, or VDS. Some experts believe that the broad and ambiguous definition of VDS effectively permits unfettered monitoring over an individual's financial and private digital presence, even though the government may defend it as a means to combat tax evasion and undeclared digital assets.
FAQ
Q1. When can income tax officials access my digital accounts?
According to Section 247 of the Income Tax Bill, 2025, income tax authorities may access your digital accounts in the following situations:
Suspicion of tax evasion or unreported income
Non-compliance with a notice or summons
Examining Assets That Are Not Reported
Q2. When will Section 247 of the Income Tax Bill, 2025 be implemented?
After the Income Tax Bill, 2025 is approved by both houses of Parliament and signed into law by the president, its provisions will take effect on April 1, 2026.
Q3. Can income tax officers access personal emails, social media and bank accounts of taxpayers without a notice?
If income tax agents suspect tax evasion or unreported money, they may search personal emails, social media accounts, and bank accounts without prior notice under the Income Tax Bill, 2025.
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