New Delhi: Union Finance Minister Nirmala Sitharaman, on Tuesday, strongly defended the provisions of the Income Tax Bill, 2025, stating that access to digital records is crucial for tackling tax evasion and financial fraud. She cited examples where WhatsApp messages, Google Maps history, and Instagram accounts helped tax authorities trace unaccounted wealth and expose financial misconduct.
“Encrypted messages on mobile phones led to the discovery of ₹250 crore in unaccounted money. WhatsApp messages alone helped unearth ₹200 crore linked to crypto assets,” Sitharaman said in the Lok Sabha, as quoted by MoneyControl.
The finance minister further explained that Google Maps history was used to track locations where individuals frequently hid cash, while Instagram accounts provided crucial insights into benami property ownership. She emphasized that these digital footprints have revolutionized tax enforcement, ensuring that virtual digital assets, such as cryptocurrencies, do not escape scrutiny.
The Income Tax Bill, 2025, introduced in the Lok Sabha on February 13, aims to replace the Income Tax Act of 1961. While maintaining most existing provisions, the Bill focuses on simplifying tax laws and removing outdated sections. Notably, it classifies virtual digital assets (VDAs) as part of undisclosed income, expanding the definition to include cryptocurrencies, digital tokens, and cryptographic assets, according to PRS India.
Sitharaman justified granting tax authorities the power to access digital communications like emails, WhatsApp, and Telegram, arguing that such evidence is critical in proving tax fraud in court and calculating the exact tax evasion amount.
