Under the existing law, if the investigating officers in a case do not have the keys and they suspect that any undeclared asset or books of accounts are being kept there, they can break the lock of any door, box or locker.
Government is very serious about stopping tax evasion in the country and many steps are being taken for this. In this connection, the Income Tax Department is going to get many more powers. Starting from April 1, 2026, the Income Tax Department will have the legal right to access your social media accounts, e-mails, bank accounts, online investment accounts, trading accounts, etc. However, the Income Tax Department will do this only if they suspect that you have evaded taxes.
According to a report by the Economic Times, if the I-T Department feels that you have any undeclared income, money, gold, jewelry or any other valuable thing or property on which you have not paid the applicable income tax as per the Income Tax Act, 1961, then in such a situation also they will be able to search your accounts.
What is Section 132 of the Income Tax Act, 1961
Section 132 of the existing Income Tax Act, 1961 allows authorised officers of the Income Tax Department to conduct searches as well as seize assets and books of accounts. However, officers get this permission only in circumstances when they have information and reason to believe that a person has any undisclosed income, property or documents which they will not disclose in order to evade income tax.
What powers does the department have under the current law
Under the current law, if the investigating officers in a case do not have the keys and they suspect that any undeclared property or book of accounts is being kept there, then they can break the lock of any door, box or locker. Whereas under the new Income Tax Bill, the officers will not only be able to break the locks but will also be able to search your social media accounts, e-mails, bank accounts, online investment accounts, trading accounts etc. without informing them.
What is in section 247 of the new Income Tax Bill
According to section 247 of the new Income Tax Bill, if an authorized officer has reason to believe that a person has undeclared income or property which comes under the purview of income tax, then they can break the lock of any door, box, locker, safe, cupboard using the powers given by clause (i). Can enter and search any building, place etc. or gain access by overriding the access code of any computer system or virtual digital space where the access code is not available.
