Overview
- The Income Tax Act, 2025 introduces Section 247 to cover ‘virtual digital space’ during searches, taking effect on April 1, 2026.
- PIB labeled viral posts claiming blanket access to private digital data as misleading and said routine assessments cannot use these powers.
- Authorities may seek online records only when there is a reason to believe significant evasion and the person is under formal proceedings such as a summons or notice.
- The update modernises long-standing search-and-seizure powers to include digital evidence and is aimed at tackling black money and large-scale evasion, not compliant taxpayers.
- Some reports highlight privacy and misuse concerns and call for clear safeguards and oversight as the digital provisions are implemented.