New Delhi: Sources from the Central Direct Taxation Commission (CBDT) have tried to clear the air after raising some concerns, and the tax agency has gained additional power in its 2025 income tax bill to gain beyond access to electronic records, including email, social media and virtual digital spaces.
Sources of the Central Direct Taxation Commission (CBDT) explained that Section 132 of the Income Tax Act of 1961 requires authorized officials to have books, accounts or other documents in the form of electronic records to inspect such documents and seize such documents (including document records of Section 2 (22AAA), including the 19611 Income Tax Acc.).
“It is incorrect to claim that a new big power is being introduced,” one source said. Similarly, Section 247 of the Income Tax Act 2025 provides that authorized officials can access it through access codes covering computer systems or virtual digital spaces.
“This is only a power to the authorized officials already exist,” one of the sources explained. Further stressing that in rare cases, the competent authority ordered searches and seizures, and the relevant personnel did not cooperate with the litigation, which the tax authorities granted.
One of the sources also reiterated that “this is not standard practice.” It is only applicable to special circumstances. Under the Income Tax Act of 1961, it remains unchanged in the new Income Tax Act of 2025. LokSabha spokesman Om Birla constitutes a 31-member Lok Sabha MPS Options Committee to study the new Income Tax Act, aiming to simplify the definition of tax laws, modernize, and provide clarity on various taxes, as well as provide more tax issues.
The new bill, introduced on February 13 by Union Finance Minister Nirmala Sitharaman in Lok Sabha, aims to replace the existing income tax law of 1961 and introduce taxpayers affecting different categories, including individuals, businesses and nonprofits. In the July 2024 budget, the government proposed a comprehensive review of the Income Tax Act of 1961. The purpose is to make the bill concise and clear and reduce disputes and litigation.
