Income Tax Department Can Now Access Your Social Media and Emails Without Notice — Here's Why

The government is tightening its grip on tax evaders, and now the Income Tax Department is set to gain more extensive powers to curb tax evasion in the country. Starting from April 1, 2026, the department will be legally authorized to access your social media accounts, emails, bank accounts, investment portfolios, and trading accounts without prior notification if they suspect tax evasion.

According to a report by the Economic Times, the Income Tax Department (ITD) has been empowered under the new Income Tax Bill to investigate hidden assets, undisclosed income, jewelry, cash, or any valuable property on which income tax has not been paid. This will significantly boost the department’s capability to crack down on individuals or entities attempting to dodge taxes.

Existing Law Permits Breaking Locks; New Law Expands Power

Under the existing Section 132 of the Income Tax Act, 1961, investigating officers are authorized to break the lock of any door, box, or locker if they suspect that it contains undisclosed assets or books of accounts, especially when the keys are not available. However, this law limited their powers only to physical properties.

The new Income Tax Bill, effective from April 1, 2026, will now extend these powers into the digital space. This means that apart from breaking locks of physical assets, officers can also access your social media accounts, emails, bank accounts, trading accounts, and online investment portfolios without informing you — if they have reasonable grounds to believe that you are hiding income or assets.

Section 247 of the New Income Tax Bill Grants Digital Access

The new Section 247 of the Income Tax Bill empowers the department with unprecedented digital access rights. According to this section, if any authorized tax officer suspects that a person has concealed income, wealth, or property, they can:

• Gain access to any digital account, including email, social media profiles, and financial accounts.
• Override access codes or digital locks on any computer system, smartphone, or cloud storage without informing the individual.
• Break into physical property if they believe that valuable information or assets are hidden.

This drastic expansion of power is seen as a strategic move by the government to curb tax evasion and uncover hidden wealth. However, many legal experts have raised privacy concerns regarding the unchecked access to personal and financial data.

When Can the Income Tax Department Access Your Accounts?

According to Section 247 of the new Income Tax Bill, officers can access your personal or business accounts under the following circumstances:

1. Undisclosed Income or Property: If the department has evidence that you own property, cash, jewelry, or any valuable asset without proper tax declaration.
2. Suspicious Transactions: If your bank or trading account shows abnormal large transactions without justifiable income proof.
3. Digital Investigation: If they suspect you are hiding income or assets through digital platforms such as e-wallets, trading platforms, online investments, or social media activities.

What Can the Tax Department Access Without Informing You?

Under the new law, the Income Tax Department will be able to:

• Access your personal or professional email accounts for any financial transaction or correspondence.
• Scan your social media accounts to track any sign of hidden wealth or income.
• View your investment and trading accounts for unreported transactions.
• Track undeclared cash flows by analyzing your digital spending behavior.

What Should Taxpayers Do Now?

Given the new powers of the Income Tax Department, taxpayers are strongly advised to:

• Ensure proper tax filings for all assets, investments, and property.
• Avoid unreported cash transactions.
• Keep detailed records of high-value purchases, investments, and cash withdrawals.

The government’s move to increase the powers of the Income Tax Department aligns with its broader agenda to curb black money and unreported income. While this is expected to reduce tax evasion, it also raises questions about privacy infringement and data protection.

Taxpayers are now encouraged to maintain complete transparency in their income tax returns to avoid any surprise visits or digital investigations by the department.