India's New Tax Law to Monitor Digital Activities

According to PANews, the Indian Income Tax Department will gain the authority to monitor individuals' digital activities, including social media accounts, emails, and online financial transactions, starting April 1, 2026. This development is part of the 2025 Income Tax Act, aimed at enhancing the department's ability to detect tax evasion and undisclosed assets, including cryptocurrency holdings. Under Section 247 of the Act, tax officials can access digital platforms if they suspect tax evasion. This includes the ability to override passwords and access computer systems and virtual digital spaces when necessary. The move is seen as an effort to modernize tax investigations by leveraging digital forensic technology to track undisclosed income, aligning with the increasing digitization of financial transactions. Experts have raised concerns about privacy, fearing that the broad powers granted to tax officials could lead to misuse and infringe on privacy rights. The bill is currently under review by a special committee, which will consult with stakeholders before finalizing the legislation.