If you are an income tax citizen, then this news is very important for you. From 1 April 2026, the Income Tax Department will get the legal right to reach your social media account, personal email, bank account and trading account on suspicion of tax evasion.
However, this rule will not apply to every taxpayer. This is only for those people who will have concrete doubt to the Income Tax Department that they are stealing tax by hiding their income or property.
What is the new rule?
Currently, under Section 132 of the Income Tax Act, 1961, Income Tax Officers have the right to search and seizure property and financial documents. But under the new Income Tax law (Income Tax Bill 2026), this right has now been extended to digital space.
This means that
Your bank account
Trading and investment accounts
Social media account
Personal email
Now the Income Tax Department can come under the scope of investigation, if they are suspected of tax evasion.
Can the Income Tax Department check?
Under the Claus 247 of Income Tax Bill 2026, if an authorized officer believes that a person hides undisclosed income or property, he will have the right to do the following work:
- Break any door, locker, chest or cupboard and search.
- Searching to enter any house or office.
- Reaching any digital device, social media account, bank account and trading account.
What is “Virtual Digital Space”?
The new Income Tax Act defines “Virtual Digital Space” very widely. This includes the following things:
- Social Media Account (Facebook, Twitter, Instagram, LinkedIn etc.)
- Bank account (Savings, Fixed Deposit, Loan Accounts etc.)
- Online Trading and Investment Accounts (Mutual Funds, Stock Market, Crypto etc.)
