KTR Slams Centre’s Proposed Income Tax Bill, Calls It a Threat to Digital Privacy

Hyderabad: BRS Working President KT Rama Rao (KTR) has strongly criticized the Centre’s proposed new Income Tax Bill, calling it a serious threat to digital privacy. He has demanded answers from Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman regarding the sweeping powers granted to Income Tax officials under the new provisions.

“Mass Surveillance in the Name of Tax Enforcement”: KTR

In a strongly worded statement, KTR expressed concern that the Bill would allow tax authorities unrestricted access to citizens’ social media, emails, and online trading accounts under the guise of tax scrutiny. He warned that this overreach could lead to harassment and misuse.

“The new Bill allows unchecked access to citizens’ virtual digital spaces, effectively enabling mass surveillance. This is an assault on digital privacy and fundamental rights,” he said.

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Concerns Over Section 247 and Section 261(i)

The Income Tax Bill 2025, introduced in February, expands tax authorities’ powers far beyond the Income Tax Act, 1961. Section 247 allows officials to search and access any virtual digital space if tax evasion is suspected. The definition of “virtual digital space” under Section 261(i) includes social media, emails, and online accounts, raising concerns about potential misuse.

The new provisions, set to take effect from April 1, 2026, could override digital security measures without clear safeguards, unlike the current law that focuses only on physical assets.

Legal Experts Raise Privacy Violation Concerns

Legal experts have warned that the proposed Bill violates the right to privacy under Article 21, as upheld in the landmark 2017 Puttaswamy judgment. KTR questioned who would hold tax officials accountable in case of misuse and urged citizens and opposition leaders to oppose the Bill.

Calls for Amendments to Protect Privacy

KTR has called the Bill a blatant assault on digital privacy and urged the Centre to introduce amendments to ensure a balance between tax enforcement and privacy protection.

With growing opposition, the Centre may face significant pushback on the Bill, as concerns over digital privacy and government overreach continue to mount.