Proposed Indian Legislation: The tax department will monitor digital activities, including cryptocurrency holdings, starting from April 2026

ChainCatcher news, reported by The Defiant, states that under the "Income Tax Act of 2025," the Indian income tax department will gain the authority to monitor individuals' digital activities, including social media accounts, emails, and online financial transactions, starting from April 1, 2026. This new power aims to enhance the department's ability to detect tax evasion and undisclosed assets, including cryptocurrency holdings.

According to Section 247 of the Act, if tax officials suspect tax evasion, they can access digital platforms. This includes the authority to override passwords and access computer systems and virtual digital spaces when necessary. This move is seen as a modernization of tax investigations by utilizing digital forensic technologies to track undisclosed income, adapting to the trend of increasingly digital financial transactions.

Experts have expressed concerns about privacy issues, fearing that the broad powers granted to tax officials could lead to abuse and violations of privacy rights. The bill is currently under review by a special committee, which will consult with stakeholders before finalizing the legislation.