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Proposed Indian Bill: The tax department will monitor digital activities, including cryptocurrency holdings, starting from April 2026

Proposed Indian Bill: The tax department will monitor digital activities, including cryptocurrency holdings, starting from April 2026

Bitget2025/03/06 07:43

According to The Defiant, under the "Income Tax Act of 2025", the Indian Income Tax Department will gain authority to monitor individual digital activities from April 1, 2026. This includes social media accounts, emails and online financial transactions. This new power aims to enhance the department's ability to detect tax evasion and undisclosed assets (including cryptocurrency holdings). Under Section 247 of the Act, if tax officials suspect tax evasion, they can access digital platforms. This includes overriding passwords when necessary and accessing computer systems and virtual digital spaces. This move is seen as modernizing tax investigations by tracking undisclosed income using digital forensics technology in response to an increasingly digitized trend in financial transactions. Experts are concerned about privacy issues fearing that granting broad powers to tax officials could 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 legislation.

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