Can Tax Authorities Access Your Emails and Chats? Government Clarifies Scope of Section 247

Can Tax Authorities Access Your Emails and Chats? Government Clarifies Scope of Section 247

As the Income-tax Act, 2025 comes into force on April 1, Section 247 has attracted attention amid concerns about its scope in the digital space.

Several people were worried that Section 247 would allow income tax authorities to access individuals’ private digital spaces, including emails, social media accounts, and cloud storage. However, the government has clarified in Parliament that these fears stem from misunderstandings and incorrect interpretations.

The matter was raised in the Lok Sabha, where Members of Parliament asked if the provision allows extensive entry into taxpayers’ digital accounts or the use of AI-driven tools for monitoring.

In response, the Finance Ministry clarified that Section 247 does not mention AI and does not provide any new or unlimited powers to the authorities. The ministry stressed that this provision applies only to authorised search and survey operations and cannot be used for routine checks, general data collection, or indiscriminate access to information.

The Press Information Bureau (PIB) supported this explanation, stating that Section 247 is intended to address serious offences like tax evasion and undisclosed income. It also pointed out that similar search and seizure powers already existed under the Income-tax Act, 1961, and the 2025 law mainly updates the language to account for the digital era without changing the basic framework.

What do you understand by section 247 and what does it cover?

Section 247 mandates that any person in possession or control of electronic records must provide “reasonable technical and other assistance” to authorised tax officers during a search. This could include things like helping open digital files, explaining how a computer system works, or assisting with accessing electronic records. If needed, the officers are also allowed to bypass passwords or access codes to complete the search, as long as the search itself is legally authorised.

This provision does not give the Income Tax Department any new or extra powers beyond what already exists for search operations. Instead, it simply updates the language of the law to reflect modern realities, where financial information is often stored in digital systems rather than only in physical documents, says the Ministry of Finance.

An expert explained that the new law introduces the idea of a “computer system”, which includes devices such as laptops, desktops, tablets, and computers connected to servers. It also recognises “virtual digital space”.

Because of this, officers can examine and seize not only physical documents and valuables but also electronic records, data, and communications stored in these systems. This means that a tax investigation could potentially include WhatsApp chats, Gmail emails, cloud backups, and even data stored on servers located outside the country.

Apart from this, Section 247 also explains how officers can access digital infrastructure. Taxpayers and anyone who controls the relevant systems are legally required to provide technical assistance. This includes giving passwords, login details, and any other information needed to access books of accounts, documents, computer systems, and related digital spaces.

The expert further said, ‘If a person does not cooperate, the law allows officers to bypass or disable security protections to gain access.’ This raised concerns about whether taxpayers’ privacy rights could be affected.

The government clarified that these powers can only be used during officially approved searches or surveys meant to investigate serious tax evasion cases. They are not intended for routine monitoring of people’s online activities or communications.