New Income Tax Bill

New Income Tax Bill: The new Income-tax Bill, 2025, recently introduced in Lok Sabha, proposes to define "virtual digital space" and grant tax officers powers to access social media, digital accounts, and emails during searches and seizures.

• About New Income Tax Bill: The bill defines "virtual digital space" as "any digital realm that allows users to interact, communicate, and perform activities" through computer technology.

o Inclusion of Virtual Digital Space: Under search & seizure operations, allows officers to examine on oath anyone in possession or control of digital assets.

o Existing Powers & Digital Evidence Collection: Under Section 132 of the I-T Act, authorities already seize desktops, hard disks, and collect digital communication (emails, WhatsApp, Telegram, etc.).

o It mandates providing credentials to facilitate access & seizure of electronic documents.

o Section 247 – Powers to Access & Override Access Code: Grants tax officers’ powers to access online investment, trading, banking accounts, emails, and social media.

ü Enables overriding access codes where credentials are unavailable.

o Existing Legal Provisions on Searches & Seizures: Section 132 of the I-T Act, 1961 already allows tax authorities to inspect, seize books of accounts, and electronic records.

ü Tax authorities can search buildings, places, vehicles, vessels, aircraft, safes, and other repositories for tax evasion.

o Purpose of Income-tax Bill, 2025: Simplifies the six-decade-old Income-tax Act, 1961.

ü Streamlines provisions, removes obsolete references, and enhances readability.