Union Finance Minister Nirmala Sitharaman defended the new Income Tax Bill, 2025 on Tuesday in the Lok Sabha, emphasizing that digital evidence specifically WhatsApp messages was key in revealing ₹200 crore in unaccounted funds linked to crypto assets. According to MoneyControl, encrypted communications on mobile devices uncovered nearly ₹250 crore in undisclosed money, underscoring the need for tax authorities to have access to digital records in order to tackle tax evasion and financial fraud.
Sitharaman further explained that data from Google Maps was utilized to trace locations often used to stash cash, while analysis of Instagram accounts helped identify ‘benami’ property ownership. She asserted that such technological integration ensures that virtual assets, like cryptocurrencies, are effectively monitored.
The minister detailed that the bill empowers officials to access platforms such as emails, WhatsApp, Telegram, along with various business software and servers that could conceal financial transactions. This access is crucial not only for collecting evidence in court cases but also for accurately determining the extent of tax evasion.
Introduced on February 13 in the Lok Sabha, the Income Tax Bill, 2025 seeks to replace the archaic Income Tax Act of 1961 by simplifying its language and removing obsolete sections. A notable revision in the bill is the inclusion of virtual digital assets encompassing digital tokens, cryptocurrencies, and other cryptographic forms of value under the definition of undisclosed income, as reported by PRSIndia. Additionally, the legislation authorizes tax authorities to inspect digital spaces during search and seizure operations, including email servers, social media platforms, and online trading portals, even overriding access codes when necessary.
