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India proposed bill: Tax authorities will monitor digital activity, including cryptocurrency holdings, starting from April 2026
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According to The Defiant, under the Income Tax Act 2025, India's income tax department will gain permission to monitor personal digital activities from April 1, 2026, including social media accounts, emails and online financial transactions. This new power is designed to enhance the department's ability to detect tax evasion and undisclosed assets, including cryptocurrency holdings. Under Section 247 of the bill, tax officials can access digital platforms if they suspect tax evasion. This includes permission to overwrite passwords and access to computer systems and virtual digital spaces, if necessary. The move is seen as modernizing tax investigations by using digital forensics technology to adapt to the increasingly digital trend of financial transactions. Experts expressed concerns about privacy concerns, fearing that the broad power granted to tax officials could lead to abuse and infringement of privacy rights. The bill is currently under review by a special committee that will consult with stakeholders before finalizing legislation.
Keywords: Bitcoin
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