Amid widespread social media claims, the government has clarified that the Income Tax Department (ITD) does not track individual digital behaviour, online spending, or lifestyle habits. A recent post on Instagram by an account called ‘bingewealth’ suggested that personal digital activity, including emails, social media, trading apps, and private accounts, could be monitored by tax authorities. This has been labelled misleading by the Press Information Bureau (PIB).
No surveillance of digital activity
The ITD has no mechanism to monitor personal spending or app-based transactions. High-value transactions reported under Section 285BA of the Income Tax Act, 1961, through the Statement of Financial Transactions (SFT) framework, are part of standard compliance procedures. These reports are submitted by banks, registrars, and other specified entities. They do not involve profiling individuals or tracking their online habits.
Powers under Section 247: Targeted, not general
From April 1, 2026, some reports suggested that the ITD could access private digital spaces. The government clarified that Section 247 of the Income Tax Act, 2025, applies only during search and survey operations. These powers are reserved for cases of serious tax evasion and cannot be used for routine assessments or monitoring law-abiding citizens.
Seizure of documents has existed under the Income Tax Act, 1961, and remains limited to investigative contexts.
Authorities cannot access emails, social media accounts, or trading apps without initiating a formal search based on credible evidence.
What taxpayers need to know?
Routine transactions, online payments, and digital purchases remain private.
High-value transactions reported under the SFT framework are for compliance purposes only.
Law-abiding citizens are not subject to surveillance or behavioural monitoring.
Experts say such clarifications are essential to dispel myths circulating on social media, especially given rising concerns about digital privacy. The ITD’s powers remain strictly tied to combating black money and large-scale tax evasion, not everyday spending habits.
