
Union Finance Minister Nirmala Sitharaman defended the Income Tax Bill, 2025, citing how WhatsApp messages helped uncover ₹200 crore in unaccounted crypto assets. Addressing the Lok Sabha, she emphasized that granting tax authorities access to encrypted messages, Google Maps history, and social media accounts is crucial for tackling tax evasion.
The bill, which aims to replace the 1961 Income Tax Act, expands the definition of undisclosed income to include virtual digital assets like cryptocurrencies and NFTs. Tax authorities will now have the power to access online servers, emails, and trading platforms, even overriding access codes if necessary.
While the government argues this move keeps tax enforcement in sync with digital advancements, critics worry about privacy concerns. As digital transactions rise, this bill marks a major shift in India's tax laws, sparking debates over privacy vs. financial transparency.
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