Proposed Income Tax Bill, 2025 Raises Privacy Concerns Over Digital Search and Seizure Powers
(Source – Indian Express, Section – Explained, Page – 13)
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Topic: GS2 – Polity |
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Context |
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Analysis of the news:
Expanded Powers Over Digital Access
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While the existing Income-tax Act already allows tax authorities to search premises and seize electronic records, the new bill broadens this by authorizing officials to bypass access controls on digital environments.
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This includes social media accounts, email servers, cloud storage, and even encrypted communication platforms like WhatsApp.
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The bill explicitly allows the government to use password-breaking software or seek assistance from service providers to bypass login credentials.
Legal and Privacy Implications
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Privacy advocates argue that this change creates a legal loophole, as the existing Digital Personal Data Protection Act exempts tax authorities from privacy protections.
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Critics fear that the bill could lead to harassment, excessive government oversight, and misuse of personal data without proper legal safeguards.
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Legal experts point out that the bill represents a notable departure from the current Income-tax Act, which did not cover such extensive digital domains.
Expert and Stakeholder Reactions
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Legal and tax experts have voiced concern over the potential for misuse of power and lack of clarity on safeguards.
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The Internet Freedom Foundation (IFF) has urged the Select Committee of Parliament to incorporate the proportionality principle, ensuring that digital searches are conducted using the least invasive methods, as per the Supreme Court’s 2017 right to privacy judgment.
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Without clear protections, the bill risks facilitating unchecked surveillance and infringing on constitutional privacy rights.
Conclusion
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The proposed Income Tax Bill, 2025, significantly expands the government’s powers over digital search and seizure, raising critical privacy and legal concerns.
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Stakeholders have called for stronger safeguards to balance enforcement powers with individual privacy rights.
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Practice Question: Discuss the privacy concerns raised by the proposed Income-Tax Bill, 2025, regarding search and seizure powers in virtual digital spaces. How can a balance be maintained between the government’s investigative authority and citizens’ right to privacy? (250 Words /15 marks) |
