Explained: Why income tax officials may soon access your mail, social media accounts

Starting April 2026, a significant change in the Income Tax Act may grant the income tax department the power to access a wide range of private digital spaces, including emails, social media accounts, and online financial platforms of an individual suspected of 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 expansion of search and seizure powers has sparked concerns about privacy, as the government will gain the ability to monitor not just physical properties but also personal online activity.

Also read: Budget Session: Nirmala Sitharaman introduces Income Tax Bill in Lok Sabha

What are the new powers granted to the income tax officials? What powers did they have earlier?

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.

Income tax officers could earlier only break into physical spaces, such as lockers or safes, when the keys or access were unavailable. At present, Section 132 of the Income Tax Act, 1961, allows Income Tax officials to seize assets and books during search operations if they have sufficient reasons to believe that an individual is in possession of undisclosed income or assets.

The new bill, however, introduces the concept of “virtual digital spaces” and allows officers to gain access to emails, social media, cloud storage, and even online financial accounts if they suspect tax evasion. The bill aims to tackle modern tax evasion methods but raises questions about the balance between enforcement and privacy.

According to clause 247 of the Income Tax bill, if an authorised officer has reason to believe that an individual possesses undisclosed income or property that comes under the ambit of I-T Act, they can “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.”

This means that authorised officers with effect from April, 2026 can gain access, by overriding the access code, to any computer systems, emails, social media accounts or any virtual digital space, if they suspect you of intentionally evading income tax and where access is not available to them.

What does ‘virtual digital space’ mean in the new Income Tax Bill?

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

Also read: New tax Bill: No-deductions, low-rate regime should ease compliance

Which officers are authorised to carry out these operations?

The bill defines the term “authorised officer” as follows:

i.) Joint Director or Additional Director

ii.) Joint Commissioner or Additional Commissioner

iii.) Assistant Director or Deputy Director

iv.) Assistant Commissioner or Deputy Commissioner

v.) Income Tax Officer or Tax Recovery Officer

Why these provisions of the new Income Tax Bill have sparked privacy violation concerns?

Though new rules significantly widen the scope of tax investigations, many apprehend that these new powers could lead to state overreach, especially since there is no clear judicial oversight to protect individual privacy.

As this provision takes effect, it raises questions about privacy and the balance between tax enforcement and individual rights. Significantly, the new income tax bill would allow tax officers to access private data without a court order unlike in the US or the European Union, raising alarms about potential misuse of the system.

Vishwas Panjiar, a partner at Nangia Andersen LLP, told news agency Reuters that it is a major shift from the existing Income Tax Act, 1961. He warned that without strict safeguards, these new powers could lead to harassment and unnecessary scrutiny of personal data. “This represents a notable departure from the present Income Tax Act, 1961, which did not explicitly cover such digital domains,” Panjiar said. “Without clear safeguards, these extensive powers could lead to taxpayer harassment or unnecessary scrutiny of personal data.”

Also read: No income tax up to Rs 12 lakh: Know the revised slabs under new regime

Former Infosys CFO Mohandas Pai said that the decision to give tax officials access to a person’s social media accounts and emails is an “assault” on people’s rights. Tagging Prime Minister Narendra Modi on his post, Pai wrote on social media platform ‘X’, “Your email and social media account can be accessed by income tax officers starting next financial year in these cases – This is an assault on our rights! Govt should provide safeguards against misuse, get a court order before this.”