GUWAHATI: The Centre has defended the provisions of the proposed Income Tax Bill, 2025, citing instances where encrypted WhatsApp messages helped authorities unearth ₹200 crore in unaccounted money linked to crypto assets.
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Union Finance Minister Nirmala Sitharaman, while recently addressing the Lok Sabha, said that granting tax authorities access to digital records is crucial in tackling tax evasion and financial fraud. She highlighted in particular that WhatsApp communications were instrumental in exposing unaccounted wealth, with the total recovery exceeding ₹250 crore.
Sitharaman further pointed out that authorities also used Google Maps history to track locations where cash was hidden. Additionally, Instagram accounts were analysed to establish links to ‘benami’ property ownership, strengthening investigations into undisclosed assets.
As the new tax bill empowers officials to access communication platforms, Sitharaman explained that surveying transactions on WhatsApp, Telegram, and emails, as well as business software and servers are crucial to identify unaccounted wealth.
She further asserted that evidence collected from these digital platforms is essential for proving tax evasion in court and determining the exact amount of tax liability.
The Income Tax Bill, 2025, introduced in the Lok Sabha on February 13, was introduced to replace the Income Tax Act of 1961. While retaining most of the earlier provisions, the bill has granted tax authorities the power to access virtual spaces during search and seizure operations.
