Income-Tax Bill empowers taxman to ask for access to electronic systems

Scrutinising crypto, other virtual digital assets may become easier

In a move that could make it easier to scrutinise cryptocurrency and other virtual digital assets, the new income-tax Bill introduced in the Lok Sabha on Thursday empowers tax authorities to demand codes for access to electronic systems during surveys and searches.

 

Section 247 of the Bill broadens search and seizure powers of income-tax authorities, covering access not only to physical and local assets but also digital records and virtual spaces.

 

Section 253 allows tax officers to request “technical and other assistance, including access codes” during surveys, making it mandatory for taxpayers to provide access to Cloud spaces, computers and