Facebook and Instagram' under scrutiny; Income Tax Department to introduce a new law from next year.

Income Tax Department to Implement New Law from April 1, 2026
A new law granting the Income Tax Department the authority to monitor individuals' digital and social media transactions will come into effect from April 1, 2026. Under this law, if there are any suspicions related to taxation, the department will have the power to scrutinize all online digital transactions, including social media platforms such as Facebook and Instagram, emails, bank accounts, and online trading platforms.

This move is part of efforts to strengthen tax-related investigations, given the increasing number of digital financial transactions. The government hopes this will help curb undisclosed financial activities and illegal transactions.

Under the existing Income Tax Act of 1961, the department has the authority to seize money, gold, jewelry, and financial documents in cases of tax fraud. If necessary, officials can also break open safes and lockers. However, digital platforms currently fall beyond the scope of these laws.