PANews reported on March 6 that according to The Defiant, under the Income Tax Act 2025, the Indian Income Tax Department will be given the authority to monitor personal digital activities, including social media accounts, emails, and online financial transactions, from April 1, 2026. This new power is intended to enhance the department's ability to detect tax evasion and undisclosed assets, including cryptocurrency holdings.

Under Section 247 of the bill, tax officials can access digital platforms if they suspect tax evasion. This includes the right to override passwords and access computer systems and virtual digital spaces when necessary. The move is seen as modernizing tax investigations to adapt to the increasing digitalization of financial transactions by using digital forensics to track undisclosed income.

Experts have expressed concerns about privacy issues, fearing that the broad powers given to tax officials could lead to abuse and infringe on privacy rights. The bill is currently being reviewed by a select committee, which will consult with stakeholders before finalizing the legislation.