New Delhi:
The Parliamentary Select Committee reviewing the Income Tax Bill, 2025 has submitted its report, recommending 285 changes but leaving intact a controversial provision that allows tax authorities access to personal digital communications—including those on platforms like WhatsApp.
Despite pushback from opposition parties and privacy advocates, the committee finalized its report without proposing any significant amendments to this specific clause. The provision enables Income Tax officers to access digital correspondence during investigations, raising concerns about surveillance, misuse, and privacy violations.
According to sources, the committee held multiple sessions to deliberate the bill and incorporated a broad set of suggestions aimed at simplifying compliance, closing loopholes, and improving taxpayer services. However, the decision to retain access to encrypted communications has stirred debate among privacy experts.
The final draft is expected to be tabled in Parliament during the upcoming session. The bill, which aims to overhaul the Income Tax Act of 1961, is one of the most comprehensive tax reforms in recent years.
Opposition members who submitted dissenting notes argue that unchecked access to communication apps poses a threat to citizens’ fundamental rights and sets a dangerous precedent.
The Finance Ministry has yet to respond formally to the committee’s report.
