Finance Minister Nirmala Sitharaman introduced the new Income Tax Bill on February 13, 2025. Ever since then, it has sparked significant controversy due to provisions allowing tax officials to access individuals’ digital and financial information without a warrant. This includes emails, social media accounts, bank details, and trading transactions based solely on suspicion, which critics argue could lead to excessive surveillance.
Accessing Protected Digital and Physical Spaces
Another alarming provision allows tax officers to bypass security measures to access protected digital and physical spaces if they suspect hidden income or assets. Privacy advocates and legal experts have raised concerns about the potential for abuse without adequate safeguards.
Select Committee Review
A 31-member Select Committee, led by BJP National Vice President Baijayant Panda, is reviewing the bill’s implications for privacy and its alignment with existing legal standards. The committee’s findings will address these issues in detail.
Opposition’s Criticism
Supriya Shrinate of the Congress party has criticized the bill as a tool for government overreach, potentially used to stifle dissent and control opposition.
Expansion of Powers Under Section 132
Additionally, Clause 247 of the bill expands powers under Section 132 of the Income Tax Act, of 1961. Public figures like former Infosys CFO Mohandas Pai have labeled the measure an “assault” on personal rights.