K.T. Rama Rao Raises Concerns Over Centre’s Proposed Income Tax Bill, 2025, Calling It a Threat to Digital Privacy
Bharat Rashtra Samithi (BRS) working president K.T. Rama Rao has voiced serious concerns regarding the Centre’s proposed Income Tax Bill, 2025, labeling it as a significant threat to the digital privacy of all citizens.
Rama Rao, the former Telangana Minister for Information Technology, strongly condemned the provisions of the bill, claiming that it represents a grave overreach by the government under the guise of tax enforcement. He expressed alarm at the bill’s provisions, particularly the unchecked access it grants to Income Tax (IT) officials over citizens’ private online spaces.
“The Centre’s new IT Act poses a serious threat to the digital privacy of all citizens,” KTR remarked. “The new Income Tax Bill seeks to grant IT officials unchecked access to social media, emails, and online trading accounts under the pretext of tax scrutiny. This unprecedented invasion of ‘virtual digital spaces’ could lead to harassment, misuse, and mass surveillance.”
He pointed out that financial data is already subject to multiple reporting mechanisms, and the bill’s intrusive provisions would violate citizens’ fundamental rights and digital privacy. KTR questioned the accountability of officials who may misuse these sweeping powers and called on Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman to provide clarity on the issue.
The Income Tax Bill, introduced in February 2025, significantly expands the powers of tax authorities beyond the provisions of the Income Tax Act, 1961. Section 247 of the bill allows officials to search and access any “virtual digital space”—a term broadly defined under Section 261(i) to include social media, emails, and online accounts—in cases where tax evasion is suspected. This provision, effective from April 1, 2026, would override existing digital security measures without clear safeguards.
Legal experts have raised alarms about potential privacy violations, citing the 2017 Puttaswamy judgment that affirmed the right to digital privacy under Article 21 of the Constitution. KTR argued that existing surveillance mechanisms were sufficient for tax enforcement and emphasized the need for a balance between enforcement and privacy protection.
He termed the bill a “blatant assault on digital rights” and urged citizens and opposition parties to unite in opposing the bill and demanding amendments to safeguard privacy while ensuring effective tax scrutiny.
