INCOME TAX REFORMS

The new Income Tax Bill aims to streamline taxation by using simpler language and reducing the number of sections. Replacing the complex 1961 Act is a welcome move.

- Tirthankar Mitra

However, some provisions raise serious concerns about privacy and excessive state authority. One of the most contentious aspects is the requirement for taxpayers to provide tax officials with access codes to their computers during search and seizure operations.

This significantly expands the power of tax authorities, allowing them to scrutinise digital records with minimal resistance. While the intention may be to curb tax evasion, the implications for privacy, data security, and potential misuse cannot be ignored. The government must recognise that citizens typically do not store financial information on personal computers.