Quick Summary
The Lok Sabha on Monday passed the revised Income Tax Bill 2025, introducing landmark changes to Section 132 of the Income Tax Act, 1961, by explicitly empowering tax authorities to access digital records during authorised search and seizure operations. This legislative update aims to bridge the gap
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FAQ :
Section 132 of the Income Tax Act, 1961, has been revised to explicitly empower tax authorities to access digital records during authorised search and seizure operations.
Authorities can access a range of electronic data, including emails, cloud storage accounts, social media platforms, digital wallets, and cryptocurrency holdings.
These powers are restricted to sanctioned search operations and can only be used when a taxpayer refuses to cooperate or withholds access credentials like passwords or encryption keys.
No, the Central Board of Direct Taxes (CBDT) has clarified that this is strictly restricted to search and seizure operations where taxpayers refuse to share information and is not aimed at snooping on ordinary taxpayers.
The amendment was needed to modernise tax enforcement tools, as the original Section 132 was drafted before the widespread use of digital platforms and cryptocurrencies, which have created new avenues for hiding unreported income.
The department will be equipped with advanced digital tools and cyber forensic expertise, and actions will only be undertaken as part of an officially sanctioned search with oversight to prevent misuse.
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