The government has clarified that the newly introduced Section 247 of the Income-tax Act does not grant additional powers to tax authorities, pushing back against concerns that officials could gain unrestricted access to taxpayers’ digital space.
Responding to a question in the Lok Sabha, Minister of State in the Ministry of Finance Pankaj Chaudhary stated that the provision relating to search and seizure is aligned with existing powers under the law.
The reply came after lawmakers raised concerns that the section, set to take effect from 1 April 2026, had created confusion among taxpayers by allegedly allowing income-tax officials to access digital systems using Artificial Intelligence.
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Clarifying the scope, the minister said that although the authority to override access codes to computer systems already existed under Section 132 of the Income-tax Act, 1961, specific enablement has been made for the same in the Act considering the evolution of digital space and rapid advances in technology.
He further emphasised that “there is no mention of Artificial Intelligence in the provision of section 247 or any related provision.”
Therefore, the minister concluded, “the provisions of section 247 of the Act have not assigned any new power to the income-tax authorities.”
