Archive · 7 Jan 2026
Income Tax Dept Clarifies Digital Activity Tracking
The Income Tax Department (ITD) has clarified that they do not routinely track online shopping, digital payments, or personal digital activity of Indian citizens.
This clarification comes in response to a misleading claim made on social media.
The ITD can only access private digital spaces under specific conditions, such as evidence of serious tax evasion, as per Section 247 of the Income Tax Act, 2025.
The new Income Tax Act, 2025, which replaces the 1961 Act, aims to simplify tax laws and make them more technology-ready.
The Act includes provisions for reporting high-value transactions but does not involve surveillance or behavioral profiling.
The changes will impact tax returns filed from April 1, 2026, onward.
PIB Fact Check debunks claims of routine monitoring of digital activity by the Income Tax Department.
Access to private digital spaces is only permitted under Section 247 of the Income Tax Act, 2025, for serious tax evasion cases.
The Income Tax Act, 2025, replaces the 1961 Act, simplifying tax laws and making them technology-ready.
Provisions under Section 285BA and the SFT Framework deal with high-value transactions without involving surveillance.
The new Act will impact tax returns filed from April 1, 2026, onward.
- Who
- Income Tax Department (ITD) and PIB Fact Check
- What
- Clarification on digital activity tracking and tax evasion provisions
- When
- Effective from April 1, 2026, for the new Income Tax Act, 2025
- Where
- India
- Why
- To debunk misleading claims and clarify provisions under the new Income Tax Act, 2025
- Tracking Mechanism
- No routine monitoring of digital activity
- Section 247
- Allows access for serious tax evasion cases
- Section 285BA
- Deals with high-value transactions, no surveillance
- SFT Framework
- Reports high-value transactions, no behavioral profiling
- Income Tax Act, 2025
- Replaces the 1961 Act, effective from April 1, 2026
- Social Media Claim
- Misleading claim about tracking personal digital activity
