Archive · 29 Jan 2026
ICAI Warns of Privacy Risks in New Income Tax Act
The Institute of Chartered Accountants of India (ICAI) has warned that the new Income Tax Act, 2025, gives tax officials too much power to look at personal digital information, like emails and social media, during searches.
They think this could hurt people's privacy rights.
The ICAI wants the government to change the law so that tax officials can only look at official emails, not personal ones.
The government says they use these powers carefully, but the ICAI is worried about how the law is written.
This is important because the next budget might include changes to how taxes are handled and how people's privacy is protected.
The Institute of Chartered Accountants of India (ICAI) has raised concerns about Section 247 of the Income Tax Act, 2025, which allows tax authorities to access personal digital data during searches.
ICAI argues that the current provision could infringe on the fundamental right to privacy and has urged the government to amend the law to restrict access to official email accounts only.
Section 247 empowers tax officials to inspect any information, electronic records, or communication available on computer systems, including emails, social media, and data stored on devices.
The government and the Central Board of Direct Taxes (CBDT) have stated that search and seizure powers are used sparingly and only after due authorization and internal approvals.
ICAI's concern is about the wording of the law, which they believe could lead to potential misuse and litigation, and has suggested clearer guardrails to balance tax enforcement with privacy protections.
- Who
- Institute of Chartered Accountants of India (ICAI)
- What
- Warned about privacy risks in the new Income Tax Act, 2025
- When
- Ahead of the Union Budget 2026–27
- Where
- India
- Why
- To address potential infringement of the fundamental right to privacy
ICAI's Privacy Concerns
Government's Stance
Scope of Data Access
ICAI's Privacy Concerns
ICAI argues that Section 247 of the Income Tax Act, 2025, allows tax authorities to access personal digital data, including emails and social media, during searches, which could infringe on the fundamental right to privacy.
Government's Stance
The government and the Central Board of Direct Taxes (CBDT) state that search and seizure powers are used sparingly and only after due authorization and internal approvals.
Potential for Misuse
ICAI's Privacy Concerns
ICAI is concerned that the current wording of the law could lead to potential misuse and litigation, and has suggested clearer guardrails to balance tax enforcement with privacy protections.
Government's Stance
The government maintains that the powers are used carefully and responsibly, with proper checks and balances in place.
- Act
- Income Tax Act, 2025
- Section
- Section 247
- Body Raising Concern
- Institute of Chartered Accountants of India (ICAI)
- Government Body
- Central Board of Direct Taxes (CBDT)
- Budget Year
- 2026–27
- Privacy Concern
- Unrestricted access to personal digital data
- Proposed Amendment
- Restrict access to official email accounts only
Sources
Income tax searches can scan emails, social media and devices: ICAI warns of privacy risk, nudges govt for urgent fix
Economic Survey 2025-26 urges RTI review, flags governance issues
Economic Survey flags need to recalibrate RTI, warns against ‘transparency without outcomes'
