Starting April next year, when the new income tax law comes into force, income tax officials could get the authority to access your social media accounts and emails.
The new income tax bill’s clause 247 states that an authorised income tax officer will have the power to gain access by overriding the access code to any computer system or virtual digital space where the access code thereof is not available.
The clause stipulates that the tax officials will have the authority to “break open the lock of any door, box, locker, safe, almirah or other receptacle for exercising the powers conferred by clause (i) to enter and search any building, place etc where the keys thereof or the access to such building, place, etc is not available or gain access by overriding the access code to any said computer system, or virtual digital space where the access code thereof is not available”.
What does virtual digital space include?
As per the tax bill, ‘virtual digital space’ is an “environment, area or realm, that is constructed and experienced through computer technology and not the physical, tangible world which encompasses any digital realm that allows users to interact, communicate and perform activities using computer systems, computer networks, computer resources, communication devices, cyberspace, internet, worldwide web and emerging technologies, using data and information in the electronic form for creation or storage or exchange”.
It includes the following:
(3) Online investment account, trading account, banking account, etc
(4) Any website used for storing details of ownership of any asset
(5) Remote server or cloud servers
(6) Digital application platforms
(7) Any other space of similar nature
What does the current law say?
Currently, the search and seizure provisions are given in section 132 of the Income Tax Act 1961. It says that the officials can break open the lock of any door, box, locker, safe, almirah, or other receptacle to exercise the powers conferred by clause (i) where the keys thereof are not available.
It also says that officials can enter and search any building, place, vessel, vehicle or aircraft where they have reason to suspect that books of account, other documents, money, bullion, jewellery or other valuable articles or things are kept.
Notably, Finance Minister Nirmala Sitharaman tabled the new bill in Parliament on February 13 before being referred to a select committee of the Lok Saha.
