Proposed bill in India: Tax department to monitor digital activities, including cryptocurrency holdings, starting from April 2026

According to The Defiant, under the Income Tax Act 2025, the Indian income tax department will be granted the authority to monitor personal digital activities, including social media accounts, emails, and online financial transactions, starting from April 1, 2026. This new power aims to enhance the department's ability to detect tax evasion and undisclosed assets, including cryptocurrency holdings. According to Article 247 of the bill, if tax officials suspect tax evasion, they may access digital platforms. This includes the ability to override passwords and access computer systems and virtual digital spaces when necessary. This move is seen as modernizing tax investigations by utilizing digital forensics technology to track undisclosed income, in order to adapt to the increasingly digital trend of financial transactions. Experts have expressed concerns about privacy issues, fearing that the broad powers granted to tax officials may lead to abuse and infringement of privacy rights. The bill is currently being reviewed by a special committee, which will consult with stakeholders before finalizing the legislation.