Income tax investigation: Only financial data will be analysed out of Personal Chats (like WhatsApp, messages), says CBDT chief.

A major privacy debate has emerged around the new proposed Income Tax Bill, 2025, which allows tax officials to access taxpayers’ digital devices, social media accounts and private emails during search and seizure operations.

In the new Income Tax Bill, there is one provision that triggered a major debate among taxpayers in the country. This provision is about allowing tax officials to break into and access taxpayers‘ social media accounts, personal emails, bank details, etc. Surprisingly, the Select Committee has not recommended any changes in the provision.

The Income Tax Department is now preparing to take special care of the privacy of the taxpayer during digital searches. The CBDT chairman has said that when the Income Tax Department collects data from a digital device, its entire content is secured as evidence. But during the investigation, only the necessary information will be seen from it.

That is, even if WhatsApp chats have been backed up from a mobile phone or laptop, only the tax related information will be made a part of the investigation.

Taxpayers’ concerns on privacy justified, says CBDT chief

The CBDT chief admitted that the concerns of taxpayers about privacy are absolutely justified. Therefore, the department is now creating a digital manual, so that there is a fixed process for checking data during search operations. This manual will ensure that only authorized officers can access limited and necessary data.

The purpose of this new initiative is to protect the privacy of taxpayers and strengthen the credibility of the Income Tax Department.

This step is a relief for those taxpayers who were till now afraid that their personal data could be misused.