Income Tax News: Stricter Oversight on Taxpayers! New Bill Empowers Officials, These People Should Be Careful

Income Tax News: Finance Minister Nirmala Sitharaman introduced a new Income Tax Bill in Parliament, bringing significant changes to tax monitoring. A major update now reveals that officials will have enhanced powers to track taxpayer activities. The new tax bill proposal strengthens oversight to curb tax evasion, allowing income tax officials to closely examine financial records. This article explains how the Income Tax Department will monitor taxpayers and who needs to be cautious.

New Income Tax Bill 2025 - Greater Powers for Officials

The new Income Tax Bill 2025 expands the authority of tax officials, enabling them to investigate tax evasion more effectively. If passed, it will allow them to access taxpayers' social media accounts, emails, trading platforms, online investments, and bank accounts in cases of suspected tax fraud. The bill, set to be implemented from April 1, 2026, is being hailed as a landmark reform in India's tax structure, replacing a system that has remained largely unchanged for over six decades.

Officials May Access Financial Data to Prevent Tax Evasion

With the introduction of the new tax bill proposal, taxpayers will face stricter scrutiny. Those who attempt to hide income or underreport earnings while filing Income Tax Returns (ITR) should be cautious. The law empowers income tax officials to investigate digital financial footprints, including bank accounts, emails, and online transactions. They may also have the ability to reset passwords and security codes to verify suspected tax evasion.

While the new tax bill aims to curb tax evasion, concerns have been raised regarding taxpayer privacy. The provision allowing officials to access private digital accounts has sparked debates about data security.