Tax Sleuths To Get Access To Your Email, DMs; “Privacy Under Attack”
Starting April 1, 2026, the Income Tax Department will have the power to access individuals’ social media accounts, personal emails, bank accounts, online investment and trading accounts if they suspect tax evasion or undisclosed assets. This controversial provision in the new Income Tax Bill has sparked widespread criticism, with opposition leaders, legal experts, and privacy advocates raising concerns about government overreach and constitutional violations.
Under Clause 247 of the bill, authorised officers can override access codes to gain entry into an individual’s “virtual digital space.” The definition of this space includes email servers, social media accounts, online investment platforms, banking accounts, cloud servers, and even websites that store details of asset ownership. Critics argue that such sweeping powers not only violate an individual’s right to privacy but also create an unchecked mechanism for surveillance.
Sonam Chandwani, Managing Partner at KS Legal and Associates, warned that the bill allows “unrestricted surveillance over an individual’s financial and private digital presence.” She, while talking to Economic Times, questioned the absence of judicial oversight, stating, “The new Income Tax Bill lacks clear procedural checks, potentially leading to unrestricted data harvesting and fishing expeditions against businesses, professionals, and individuals.”
While talking to Economic Times, Saswati Soumya Sahu, Expert Counsel on Data Protection and AI, called it an “unreasonable and arbitrary usage of power” that contradicts data privacy principles. “This refers to the trend of using alternative data, such as crawling into the social media account of an individual, even though such an activity has no correlation with the evaluation of financial assets,” she pointed out.
The legal validity of the provision has also come under scrutiny. The Supreme Court’s landmark ruling in Justice K.S. Puttaswamy v. Union of India (2017) affirmed the Right to Privacy under Article 21, requiring any state intrusion to pass tests of legality, necessity, and proportionality. Experts argue that the new law fails to meet these conditions. S.R. Patnaik, Partner at Cyril Amarchand Mangaldas, warned that such measures should be “an exception and not a rule, given that an individual has a reasonable expectation of privacy.” He emphasised that there must be “reasonable and probable grounds that the person sought to be investigated is present in private premises, and there should be proper announcement of the purpose of search and seizure before entering.”
Sandeep Bhalla, Partner at Dhruva Advisors, highlighted that the bill overrides existing data protection laws. “Granting tax authorities the power to override digital access codes without robust checks and balances may lead to constitutional challenges on the grounds of privacy infringement and excessive state surveillance,” he said.
The opposition has strongly condemned the move. Congress MP Sasikanth Senthil mocked the provision, saying, “Now, filing taxes comes with a free ‘Big Brother Premium’ plan! The government won’t just check your income—they will scroll through your emails, DMs, and social media too. Instead of fixing tax loopholes, they would rather see if you had an expensive dinner. Next year, maybe they will check your Netflix history too! Privacy? That’s long gone!”
Investor and philanthropist Mohandas Pai expressed alarm, stating, “Your email and social media account can be accessed by income tax officers starting next financial year in these cases—this is an assault on our rights! Govt should provide safeguards against misuse, get a court order before this.”
The CPI(M) also slammed the bill, calling it a “shocking attack on the fundamental right to privacy.” The party said in a statement, “Income Tax officers can access emails & social media in the name of scrutiny. A clear step towards a surveillance state. People’s rights must not be trampled for the whims of an overreaching government. This must be opposed!”
Former Chhattisgarh Deputy Chief Minister and Congress leader T.S. Singhdeo questioned the government’s intentions behind the provision. “Is the new law granting the Income Tax Department access to social media and emails truly about preventing tax evasion, or just another excuse for government overreach into private lives? What exactly does the government hope to extract from personal social media accounts—besides private conversations and personal details? Is this about taxation or surveillance? If authorities already have access to banking and financial records, why the need to pry into personal messages and online interactions? Will this eventually extend to monitoring free speech and dissent? Are we quietly slipping into a surveillance state?”
Legal experts warn that the expansive definition of “virtual digital space” could also affect corporate data. Patnaik noted that the broad scope of the provision might include sensitive company records where a taxpayer is or was employed. “While access to digital information is important to modernise tax administration and curb undisclosed income, it has the potential to raise significant concerns regarding data protection and privacy, which has been held to be a fundamental right by the Hon’ble Supreme Court. This is especially concerning since there are no guidelines for the authorities or safeguards that are provided in relation to such searches in the ITB. In the absence of such safeguards, there is a risk of legal challenges and disputes over the extent to which tax authorities can intrude into personal and corporate digital spaces,” he warned.
As opposition to the new Income Tax Bill grows, privacy advocates fear that these unprecedented powers could be misused, turning India into a surveillance state under the guise of tax enforcement. With no judicial safeguards in place, concerns are mounting over whether this move is a step towards financial scrutiny or an erosion of fundamental rights.
