Subhechcha Ganguly 
Union Finance Minister Nirmala Sitharaman on Tuesday defended the provisions of the Income Tax Bill, 2025, citing digital evidence as a crucial tool in uncovering tax evasion. Addressing the Lok Sabha, she revealed that WhatsApp messages helped expose ₹200 crore in unaccounted money linked to cryptocurrency transactions. Additionally, encrypted mobile messages led to the discovery of ₹250 crore in undisclosed income.
Sitharaman highlighted how Google Maps history was used to track frequently visited locations where cash was hidden, while Instagram accounts helped identify ‘benami’ property ownership. She emphasized that granting tax authorities access to digital records is essential for tackling financial fraud and keeping enforcement updated with evolving technology.
The new Income Tax Bill, introduced on February 13, aims to replace the Income Tax Act of 1961. While retaining most provisions, it simplifies language and removes outdated sections. A key change includes classifying virtual digital assets—such as cryptocurrencies and digital tokens—as undisclosed income. The Bill also empowers tax officials to access digital platforms like emails, WhatsApp, and online investment accounts during investigations. Authorities can override access controls to examine financial transactions, ensuring effective tax enforcement.
