Income Tax Act 2025 Explicitly Empowers Digital Search & Seizure: CBDT Member Clarifies

The CBDT has clarified that the new Income Tax Act, 2025, explicitly empowers digital search and seizure. The CBDT member R.N. Parbat stated that while the legal powers for search and seizure have always existed, the new law makes them more explicit, including the authority to access digital lockers and virtual assets to combat tax evasion. This move is part of the government's broader strategy to modernize tax administration and bring digital assets under the tax net. The CBDT is also working on simplified rules and FAQs to ensure a seamless transition to the new law, which is set to come into effect from April 1, 2026. This will ensure greater transparency and compliance in the digital realm.