Explained: New Income Tax rules that may allow IT officials to access your email, Facebook, Instagram and other social media accounts

Come April 1, 2026, a new provision in the Income Tax Act may grant the income tax department powers to access social media accounts or emails of an individual suspected of tax evasion. Income Tax Bill, 2025, which was introduced in the Parliament recently, will allow income tax officials to legally access and inspect a wide range of personal and financial digital spaces, termed Virtual Digital Spaces. This means that the income tax department will have the legal authority to break into social media accounts, personal emails, bank accounts, online investment accounts, trading accounts, and more if they have any reason to believe that you own any undisclosed income, money, Gold, Jewelry, or valuable item or property on which you haven’t paid applicable income tax as per the Income Tax Act, 1961.
Presently, Section 132 of the Income Tax Act, 1961, allows Income Tax officials to seize assets and books during search operations if they have sufficient reasons to believe that an individual is in possession of undisclosed income or assets. The new bill, once passed, will extend this capability to the digital realm, allowing officials to bypass security measures on computer systems and virtual spaces.
Clause 247 of the Income Tax Bill outlines this expanded power, stating that officers can “break open the lock of any door, box, locker, safe, almirah, or other receptacle” or “gain access by overriding the access code” to computer systems or virtual digital spaces when access is otherwise unavailable. This applies if they believe an individual possesses undisclosed income or assets taxable under the law.

What is the new addition ‘Virtual Digital Space’ to the Income Tax Act

According to the bill, the term Virtual Digital Space includes email servers, social media accounts, online investment accounts, trading accounts, banking accounts, and any website used for storing details of ownership of any asset. It further adds that 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, storage or exchange and includes:
* Email servers
* Social media account
* Online investment account, trading account, banking account, etc
* Any website used for storing details of ownership of any asset
* Remote server or cloud servers
* Digital application platforms
* Any other space of similar nature
As to who all can wield this authority? The bill designates “authorised officers” as senior tax officials, including Joint Directors, Additional Directors, Joint Commissioners, Additional Commissioners, Assistant or Deputy Directors, Assistant or Deputy Commissioners, Income Tax Officers, and Tax Recovery Officers.
What does this mean for individuals? The new rules significantly widen the scope of tax investigations, giving officials the ability to probe deeply into personal and financial digital footprints. As this provision takes effect, it raises questions about privacy and the balance between tax enforcement and individual rights.