Income Tax Officers May Access Your Emails and Social Accounts From 2026

In a significant move that has sparked concerns over privacy and potential misuse of power, the Indian government has introduced a new income tax bill that grants tax officers sweeping authority to access taxpayers’ emails, social media accounts, and other digital platforms. The provision, set to take effect from the financial year 2026-27, allows tax authorities to override passwords and security codes during investigations, raising alarm among legal experts and privacy advocates.

The revamped Income Tax Bill, 2025, introduced by Finance Minister Nirmala Sitharaman, aims to modernize the six-decade-old tax framework. While the government claims the changes are intended to simplify tax laws, a controversial clause buried within the bill has drawn sharp criticism. Clause 247 of the bill explicitly permits designated income tax officers to access “virtual digital spaces,” including emails, social media profiles, trading accounts, and cloud servers, if they suspect tax evasion or undisclosed assets.

Under the current tax law, authorities can request access to physical devices like laptops and hard drives, but the lack of explicit provisions for digital records often leads to legal challenges. The new bill eliminates this ambiguity, granting tax officers the power to bypass security measures and unlock files if a taxpayer refuses to cooperate.

Legal experts have expressed concerns about the potential for misuse. Vishwas Panjiar, a partner at Nangia Andersen LLP, warned that without stringent safeguards, these powers could lead to harassment and unwarranted scrutiny of personal data. “This represents a notable departure from the present Income-tax Act, 1961, which did not explicitly cover such digital domains,” he said.

Sanjay Sanghvi, a partner at Khaitan & Co, noted that while tax authorities have previously sought access to digital devices, the law never explicitly allowed it. The new bill, however, makes it legally binding for taxpayers to grant access, leaving little room for refusal.

Critics argue that the provision could infringe on individual privacy and create opportunities for overreach by tax officials. The bill’s broad definition of “virtual digital space” includes any platform allowing user interaction via computers, such as email accounts, social media, and trading platforms. This expansive scope has further fueled concerns about how the powers will be exercised and monitored.

As the bill undergoes review by a parliamentary select committee, stakeholders are calling for clear guidelines and safeguards to prevent misuse. The debate highlights the delicate balance between empowering tax authorities to combat evasion and protecting citizens’ right to privacy.

With the proposed changes set to take effect in 2026, taxpayers and privacy advocates alike will be closely watching how the government addresses these concerns in the final version of the bill.