India's proposed bill: Tax authorities will monitor digital activities, including cryptocurrency holdings, from April 2026

According to The Defiant, under the Income Tax Act 2025, India's income tax department will be given the authority to monitor individuals' digital activities, including social media accounts, emails, and online financial transactions, from April 1, 2026. The new authority is designed to enhance the department's ability to detect tax evasion and undisclosed assets, including cryptocurrency holdings.
Under section 247 of the bill, tax officials have access to digital platforms if they suspect tax evasion. This includes the right to overwrite passwords and access computer systems and virtual digital spaces if necessary. The move is seen as modernising tax investigations by using digital forensics to track undisclosed income in line with the increasing digitalisation of financial transactions.
Experts have expressed concerns about privacy, fearing that the broad powers given to tax officials could lead to abuse and violate privacy rights. The bill is currently being reviewed by a special committee that will consult with stakeholders before finalizing the legislation.