The Future of work in the AI era: Steering next Digital upheaval

By Rimjhim Ray, Founder, HeyoPhone

The newly proposed Income Tax Bill 2025, introduced by Finance Minister Nirmala Sitharaman on February 13, has stirred significant debate due to its provisions that grant tax officials the ability to access individuals’ digital and financial information without requiring a warrant.

This includes emails, social media accounts, bank details, and trading transactions based merely on suspicion, a move that critics argue could lead to an overreach of surveillance powers.

This bill, emerging shortly after the presentation of the Union Budget 2025, is part of a broader initiative to modernize tax laws but has been met with strong opposition. Critics, including opposition parties and civil rights groups, fear that such powers could herald the rise of a surveillance state, compromising personal privacy.

The Congress party, through its social media department head Supriya Shrinate, has described the bill as a tool for governmental overreach, potentially used to suppress dissent and control opposition voices. This criticism highlights a broader concern about the potential for abuse of power under the guise of tax enforcement.

The bill also includes a clause allowing tax officers to bypass security measures to access protected digital and physical spaces if they suspect concealment of income or assets. This provision has particularly alarmed privacy advocates and legal experts who argue that such powers need to be balanced with adequate safeguards to prevent misuse.

A 31-member Select Committee, chaired by BJP National Vice President Baijayant Panda, is reviewing the bill’s implications for privacy and its consistency with existing legal norms. The committee’s findings and recommendations are expected to address these concerns extensively.

Moreover, the bill specifies in Clause 247, an expansion of powers previously outlined in Section 132 of Income Tax Act, 1961.

Public reaction has been vocal, with figures such as former Infosys CFO Mohandas Pai labeling the measure as an “assault” on personal rights.