Parliamentary Panel endorses Controversial Provisions in Income Tax Bill 2025, retains Officer Access to WhatsApp, Digital Data

A Parliamentary Panel has endorsed controversial provisions in the Income Tax Bill, 2025, retaining officer access to WhatsApp and other digital data. Despite concerns raised, the Select Committee unanimously adopted the report, which includes contentious clauses allowing tax officers to access communication channels of taxpayers facing search or seizure. The government aims to replace the Income Tax Act, 1961, with this new legislation from April 1, 2026, promising simplified language and streamlined procedures. The retention of such powers highlights the government's intent to leverage digital information for tax enforcement, potentially raising privacy concerns among citizens.