Select Committee Approves Digital Access for Income Tax Officers Including Social Media and Emails: Here’s What the Report Says [Read Order]

In a major move, the Parliamentary Select Committee has approved provisions in the new Income Tax Bill 2025 that allow tax officers to access and override passwords for digital platforms such as emails, social media, cloud storage, and online financial accounts.

The committee, led by MP Baijayant Panda, presented its report in the Lok Sabha on July 21, 2025. One of the most debated aspects of the report is Clause 247, which gives tax authorities legal powers to enter what are called “virtual digital spaces” during search and seizure operations.

These digital spaces include anything from email servers, WhatsApp messages, and social media accounts to online investment portfolios and cloud storage platforms.

What the Report Says

In its explanation, the Select Committee wrote:

“Presently, in many cases of search operation the taxpayers refuse to share the password/login credential of online forums/portals/e-mail accounts etc. However, various incriminating evidences and material are found/seized from electronic records including WhatsApp communications, emails, etc.”

“Further, books of account, financial statements and records are kept in the digital space and without gaining access to that fair investigation cannot be carried out… Clause 247… is only the reiteration of the already existing provision in a more explicit language. No additional power has been given to the tax authorities.”

What It Means for Taxpayers

The bill says that anyone being investigated must provide “reasonable technical and other assistance” to tax officers, which includes giving passwords, PINs, or any login credentials. If a person does not cooperate, officers have the legal right to bypass or break these security protections.

As per the report:

• Tax officers can access digital records stored on phones, laptops, and servers.
• If passwords are not shared, officers are allowed to override them.
• The digital spaces covered include social media, emails, bank accounts, trading platforms, and cloud storage.
• Devices may be seized as part of the investigation.

Concerns and Reactions

Privacy groups and digital rights advocates, such as the Internet Freedom Foundation, have raised concerns. They argue that these powers could be misused and violate an individual’s right to privacy, as recognised by the Supreme Court.

Some experts asked for safeguards like requiring tax officers to record specific reasons before accessing private accounts or excluding personal social media profiles from search. Still, the Committee rejected these changes, saying that digital tools are increasingly used for hiding income and that the law already includes protections against misuse.

As the debate continues, the government faces the challenge of balancing strong enforcement with protection of individual rights in the digital age.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates