Income Tax Bill Allows Officials To Access Assessee's Computer System Overriding Access Code In Certain Cases: Finance Ministry

The Ministry of Finance has told the Parliament that the Income Tax officials cannot access the personal emails, social media accounts and bank accounts of all assesses.

However, there is a provision in the new Income Tax Bill 2025, which allows Income Tax officals, in certain cases of search and seizure, to access the computer systems of the assesses by "overriding the access code", if the assesse is not cooperating. 

Minister of State in the Ministry of Finance, Pankaj Chaudhary, made these statements in response to a query raised by Ritabrata Banerjee, Rajya Sabha MP belonging to the Trinamool Congress.

The queries were :

(a) Whether Income Tax Officials will be allowed access to the personal e-mails, social media and bank accounts of all assesses; and

(b) if so, the details there of and the reasons therefor?.

The Minister's answer was :

(a) & (b) No, section 132 of the existing Income Tax Act, 1961 enables the authorized officer to require any person who is found to be in possession or control of any books of account or other documents maintained in the form of electronic record as defined in clause (t) of sub-section (1) of section 2 of the Information Technology Act, 2000 to afford the necessary facility to inspect such books of account or other documents during the search and seizure action.

Similar provision has been provided in the Income-tax Bill, 2025 under clause (ii) of sub-section (1) of section 247. Further, in certain cases of search and seizure authorized by the competent authority, where access code is not available and the person concerned is not cooperating with the proceedings, authorized officer may gain access by overriding the access code to such computer system.

Section 247 of the new Income Tax Bill has raised concerns as it enables officials to access the "computer system", or "virtual digital space" of an assessed suspected of tax evasion, by overriding the access code.

"Virtual digital space", as per the definition given in the Bill, includes e-mail servers, social media accounts, online investment/trading accounts, cloud servers, any website used for storing details of ownership of any asset, digital application platforms etc.