The Press Information Bureau (PIB) has stepped in to debunk a viral and misleading social media claim that caused anxiety among taxpayers. The claim suggested that starting 1 April 2026, the Income Tax Department would gain sweeping authority to monitor social media accounts, emails, and other digital platforms to prevent tax evasion.
PIB Labels Viral Post as Misleading
In a detailed fact-check report, the government's media agency firmly labelled the post circulating on X (formerly Twitter) as "misleading". The PIB clarified that the provisions under the new Income Tax Bill 2025 are not a blanket permission for surveillance. Instead, the power to access digital data is strictly confined to specific Search and Survey operations.
"Unless a taxpayer is undergoing a formal search operation due to evidence of significant tax evasion, the department has no power to access their private digital spaces," the PIB report stated emphatically. This means the vast majority of citizens who file their taxes honestly have no reason for concern.
Powers Target Black Money, Not Honest Citizens
The PIB further explained that the Income Tax Department is not authorised to access private digital spaces for routine information gathering, data processing, or even for cases under scrutiny assessment. The agency assured citizens that these measures are specifically designed to target black money and large-scale evasion discovered during searches.
"These measures are specifically designed to target black money and large-scale evasion during search and survey, not the everyday law-abiding citizen," PIB noted. The fact-check also highlighted that the power to seize documents and evidence during such operations has existed since the Income Tax Act of 1961.
What the New Income Tax Bill 2025 Actually Says
Parliament passed the new Income Tax Bill 2025 in August, replacing the six-decade-old 1961 Act. It is scheduled to come into force on 1 April 2026. The new law aims to simplify and modernise India's tax framework without changing existing tax rates.
While the previous law allowed authorities to enter property, seize documents, and access digital data during investigations, the updated bill includes a provision allowing officials to "override" access codes to computers or digital devices to obtain information. Although the term "virtual digital space" is omitted in some clauses, the definition of computer systems is broad enough to include digital platforms like email and social media.
Tax experts have pointed out that from the commencement date, officials may access digital accounts in suspected cases of tax evasion, which has sparked discussions around privacy. However, the PIB's clarification reinforces that this is not a new, unchecked power but a focused tool for investigations with evidentiary basis.
