Understanding Virtual Digital Space Under The Income Tax Bill, 2025

The newly introduced Income Tax Bill, 2025 (New IT Bill) enables tax authorities to access virtual digital space—such as emails, social media accounts, and online financial platforms—when there is suspicion of tax evasion or when an individual is believed to hold undisclosed income or property and denies access to relevant information.

Digital spaces are integral to our lives but they may soon fall under the scrutiny of tax authorities. In modern times, tax enforcement has evolved, as witnessed in the proposed Income Tax Bill, 2025, which grants tax authorities the power to access to ‘virtual digital space’. Explore our primer for timely insights on the key provisions of the Bill regarding Virtual Digital Space, its possible implications for digital privacy, and how this provision can ensure a balance between effective tax enforcement and the right to privacy.

Read the Primer here.

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