₹200 Cr Tax evasion uncovered via whatsApp: Sitharaman backs Tax Bill
Union Finance Minister Nirmala Sitharaman defended the Income Tax Bill, 2025, by citing digital evidence from WhatsApp messages. On Tuesday, she told the Lok Sabha that encrypted messages revealed ₹200 crore in unaccounted money linked to crypto assets. She stressed that tax authorities need access to digital records to tackle tax evasion and financial fraud.
Sitharaman highlighted how modern technology helps expose hidden income. She revealed that encrypted WhatsApp messages led to the discovery of ₹250 crore in unreported funds. She also mentioned that investigators used Google Maps history to track cash storage locations. Instagram accounts helped identify ‘benami’ property ownership.
The finance minister argued that the new bill aligns tax enforcement with digital advancements. It allows tax authorities to access platforms like WhatsApp, Telegram, emails, and business software. These digital tools, she said, often hide financial transactions. She emphasized that digital evidence is essential to prove tax evasion in court and accurately assess the unpaid tax amount.
The Income Tax Bill, 2025, introduced in the Lok Sabha on February 13, aims to replace the Income Tax Act of 1961. While keeping most existing provisions, the bill focuses on simplifying language and removing outdated sections.
A major update includes classifying virtual digital assets as undisclosed income. This change expands the scope to cover cryptocurrencies, digital tokens, and other digital representations of value. According to PRS India, the bill also strengthens tax authorities’ powers during search and seizure operations.
Tax officials can now access virtual digital spaces, including email servers, social media accounts, and online trading platforms. They also have the authority to bypass access codes to inspect digital environments. Sitharaman said these powers are necessary to track hidden assets and ensure fair taxation.
By enabling deeper digital investigations, the new bill seeks to curb tax evasion and adapt to the changing financial landscape.
